MBB7003M Data analytics
MBB7003M Data analytics
Part 1
1. Introduction
Tesla, operating as a leading multinational automotive manufacturing company in America, deals with the manufacturing of electric vehicles along with designing and production of solar shingles, panels and other services related to stationary battery energy storage devices. Currently, Tesla is committed to maintaining a sense of loyalty to the customers by selling high-end Tesla Model cars such as Model X, S, 3 and Y which have active domination in the market and further charging facilities have been provided to customers buying those cars at any location (Tesla.com, 2023). Tesla is committed to maintaining agility in its global supply chain to identify risks where new suppliers are essential to maintain the process (Tesla.com, 2023). A close loop vertically integrated supply chain has been established by Tesla that helps to easily meet the evolving needs of the customers through maintaining an alignment of electric cars, batteries and infrastructure of charging as of the supply chain (Naoret al., 2021). Tesla, having a total number of 1, 27,855 employees associated with its supply chain networks generated a total revenue of $81,462 million as of 2022 (Statista.com, 2023). The essential materials have been actively used by Tesla which is Nickel, Lithium, Aluminium, Gold and Tantalum for the production of its vehicles and other accessories. Other than that, Tesla is committed to achieving its objectives of 20 Million Tesla vehicles at an affordable rate to its customers within 2030 along with providing customers easy accessibility of after-sales service to promote satisfaction (Tesla.com, 2023). The cost of producing a ready-made electric vehicle has been 50% reduced by Tesla through the deployment of more efficient factories and the cost of producing a single vehicle may be reduced by 50% by getting easy access to resources. Tesla further promotes satisfaction to its customers through the promotion of personalised experiences that help to create incredible loyalty, making motivation to buy another Tesla car on the lease (Forbes.com, 2023). The main activities of selling and manufacturing electric vehicles designing those vehicles as per customer preferences along providing those vehicles on lease have been actively done by Tesla. Tesla has further invested $3.1 Billion on R&D as of 2022 which has helped to maintain integration in battery technology and the model of stimulating has further helped to easily take down its competitors by innovating in a faster manner improving battery range and quality of vehicles (Statista.com, 2023). The company has its 50000+dedicated supercharger services and destination charging facilities in the continents of North America, South America and some parts of Europe and Asia for customers owning electric vehicles Tesla or any other company making Tesla fast charging network in the world (Tesla.com, 2023). Tesla further committed towards providing sustainable solar panel technology to its customers by purchasing it at a lower price from where the customers may save a lot of expenses by taking control of the electric bill. Thus the objectives of a sustainable energy ecosystem have been further adopted by Tesla managing storage, energy generation and consumption in a sustainable manner promoting the usage of solar roofs, power walls and power packs (Abdullah, 2021).
Part 2
2. Questions along with the problems of business
Identification of the challenges of Tesla
Tesla is facing the challenge of a low sales rate due to the shutdown of factories in Texas and Shanghai for the retooling of assembly lines along with semiconductor issues and supply chain problems (Nytimes.com, 2023). However, the globally beloved automobile manufacturing business firm Tesla faces the challenge of a lack of customer satisfaction as the service centres of Tesla are not functioning in a proper way leading to longer wait times for the company (Cnbc.com, 2023). Tesla is facing the challenges of limited visibility in its inventory regarding spare parts of vehicles such as engines and tyres and other parts of the automobile that provide the competitors of Tesla such as Nissan an edge over the company. Tesla chose to use the methods of data analytics to utilise its advantages such as the improvement of customer experience to deal with the inefficiency of customer service of Tesla. Tesla also chose to use data analytics methods to reduce the issues of factory mishaps and shutdowns and the limited visibility of the inventory of the company through the creation of an effective strategy and to make informed decisions regarding the operation procedures of the company.
Description of the larger innovation and business context along with the Significance of the challenges to Tesla
The challenges faced by Tesla are extremely important for the reputed company as these challenges may lead to the halting of the business proceedings of the organisation such as the manufacture and delivery of vehicles leading to the reputed company facing the chances of bankruptcy due to low sales and revenue generation and also the negative brand reputation. The chance of high competition from competitors of the company in the automobile sector may lead to the company suffering from incidents such as finishing the year 2022 with just 15% of the market share of the company (Wired.co.uk, 2023). The company Tesla is innovation of electric vehicles to deal with the increase in customer satisfaction as the electric vehicles have fewer parts which is easier to manufacture and may help in the reduction of factory shut down and supply chain problems leading to a rise of the sales of the company.
Analysis of the outcomes of the challenges
The esteemed company Tesla may use the aspect of data analytics to make strong decisions regarding the aspect of supply chain problems and semiconductor problems to deal with the increase in the sales rate of the company. Tesla may also use the aspect of the formation of an effective strategy for marketing to deal with the increase in customer satisfaction through employing efficient employees within the service centres of Tesla to reduce the time of wait for the company. The esteemed company Tesla may deal with the aspect of the streamlining of operations to gain the advantage such as increasing the visibility of the inventory regarding the spare parts of vehicles.
3. Collection of Data
Describing the sources of data in the form of external and internal which Tesla relied upon
Tesla operates as a multinational electric car manufacturing company along with manufacturing and selling other utility devices such as solar panels, charging stations and others easily implements high technologies to perform the process of data analytics where digital data have been analysed from various sources. The process of data analytics has been done by Tesla in the form of four types: predictive, descriptive, prescriptive and diagnostic from where external and internal forms of data have been easily collected to identify challenges in the main areas of customer satisfaction, inventory management and sales. The technology that provides real-time streaming of data as of BDA includes Apache Kafka that have been actively used by Tesla and similarly, databases in the form of Cassandra and MongoDB have helped to analyse data. Data analytics adopted by Tesla has helped to adapt systems accordingly through the identification of the requirements making the company the most competitive corporation (Kumari and Bhat, 2021). Smart devices such as IOT have been used by Tesla to collect data where its sensors easily transmit data to the system for storage from where the trends and events have been identified to make predictions of the existing issues. An overview of sensor data technologies and collections may be brought down through the adaptation of IoT applications within different organisations (Madushankiet al., 2019). The data, which have been collected in the form of external and internal sources, include low customer rates due to the non-functioning of its service centres along with issues of low sales rates and limited visibility in the management of inventory.
Demonstrating the process of gathering those data
The usage of high-end technologies such as IoT and Blockchain has been done by Tesla to collect valuable data as part of the data analytics process, from where the three main areas of customer satisfaction, inventory management and sales have been identified. In terms of customer satisfaction, high-end data of the customers have been collected on social media to collect feedback. Other than that, data have been further collected by conducting online surveys of the customers as a part of data analytics to observe whether customers are satisfied or not. The essential tools equipped in CRM help to deliver services in an improved way after understanding the customer’s potential needs (Anshariet al., 2019). The data of sales information have been collected from past information related to sales of each of the Tesla models and other equipment as part of data analytics, which have been compared to identify changes in sales. Individual technologies used in machine learning act as a contribution to provide accurate forecasting of sales by individual companies (Pavlyshenko et al., 2019). Similarly, Tesla keeps a record of customers who repeat customers along with those who bought any product or accessory for one time in the personal information and time to tie feedback collected from the manager associated with warehouse management to collect data of any issues.
4. Analysis of data
The approach of analytics used by Tesla
The esteemed company Tesla used the prescriptive data analytics technique to deal with the different challenges faced by the company such as low visibility of the inventory, low rate of sales and the low satisfaction of customers due to long waits in the automobile service centres of Tesla. Prescriptive analytics is the aspect of data analytics which emphasizes increasing the maturity of the data analytics method which leads to the making of optimised decisions which are ahead of time (Lepenioti et al., 2020). Prescriptive analysis of data has advantages such as optimisation of the strategies of business such as holding monthly meetings to observe the progress of the company and the Return on investment (ROI). Tesla used this advantage of the prescriptive analytics of data to deal with the increment of the visibility of the inventory materials of the company through holding monthly meetings with the departments of stock for the company as well as the employees working in the retail sector of Tesla. Another primary advantage of the prescriptive method of data analytics is that it uses the aspect of the high agility it provides to the supply chains of the organisations. It was used by the company Tesla to mitigate the challenge of supply chain issues by making it more agile through the application of end-to-end communication and management of data. It was extremely useful for the conduction of the increment of the sales rate of the company which is essential for the high amount of revenues and profits generated for the company. Tesla also used the advantage of prescriptive data analytics which is the removal of the underperforming channels to effectively remove the aspect of the service centre of Tesla responsible for the high dissatisfaction of the customers.
Findings of the company regarding the analytics type
Tesla used the process of data analytics to deal with the aspect of challenges it faced such as the high rate of dissatisfaction among the customers and the low rate of sales along with the lack of inventory visibility. These challenges displayed detrimental effects on the business prospects of the eminent automobile company Tesla such as the loss of profits and revenues which put the company into a palace of financial danger. The primary reason behind the lack of sales of automobiles of Tesla is the shutdown of factories of Tesla in Texas and other parts of the world which is leading to the decline in the sales rate of the company (Wsj.com, 2023). The company Tesla deduced that the reason behind the inefficient service of the employees in the customer service centres of Tesla is mainly because the inadequate training of the employees is the primary reason for the low performance of the service centres. With the help of data visualisation, Tesla also deduced the reason behind the aspect of the low visibility of the inventory of the company is mainly due to the deficiency of the management in learning the skills of predicting the demands of its products in the market.
5. Analysis of the practical outcomes
Tesla uses prescriptive data analytics to mitigate the challenges that arise in the business landscape of Tesla that may halt the proceedings of business such as revenues and profits of the company. Prescriptive analysis plays an essential role in the development of the management of business organisations as well as in dealing with the coordination of the employees within the organisation (Oesterreich et al., 2020). Tesla may use the aspect of training to provide the employees with the required capacity to handle the demands of the customers and for the reduction of the time within the service centre of Tesla. This may lead to the generation of high satisfaction among consumers of the vehicles of Tesla which may lead to the generation of a high brand reputation for the company. In the present landscape, business firms focus on the concept of customer satisfaction and its essential role in the development of business aspects of the business firms (Hom, 2000). Customer satisfaction leads to the generation of highly positive imagery of the brand due to the aspect of the reputation of the brand as a customer-friendly brand. The essential part of any business is the sales of its products and Tesla is suffering from the challenge of a low rate of sales which it may solve through the application of the idea of an agile supply chain. The mitigation of the semiconductor issues is also necessary and the company may achieve the solution to this problem by utilising the concept of redesign and utilisation of Artificial Intelligence (AI) and Big Data Analytics (BDA). The agile supply chain may introduce the concepts of maintaining communication between the different parts of the supply chain including the logistics, manufacturing unit and procurers of the raw materials. It may help in the achievement of the reduction of the issues within the supply chain and to increase the sales of the automobiles of the company leading to an increment in the rate of sales.
The esteemed vehicle manufacturer company Tesla may use the strategies of prescriptive data analytics to deal with the increment of the visibility of the inventories of the company. Its inventory of Tesla consists of the spare parts of automobiles such as tyres, engines sports of the vehicles such as semiconductor chips along with the numerous models of automobiles (Tesla.com, 2023). The esteemed business organisation Tesla focuses on the application of data visualisation to deal with the aspect of making the inventory of the company more visible through analysing the information regarding the stock of the company. Tesla may use the concept of streamlining the aspect of tracking and monitoring the inventory items and the implementation of the operation software to effectively measure the stock items of the company. This may help the company to get a general idea regarding the demand of the vehicles of the company Tesla may develop a precise idea regarding the number of cars that the company may manufacture to avoid the amount of unsold vehicles remaining in the retail stores.
6. Conclusions and Recommendations
Strategic recommendations to Tesla
Based on the above-mentioned challenges in the areas of customer satisfaction, low sales, revenue and lack of visibility in the inventory, Tesla should adopt the recommendations of improving customer satisfaction by providing better after-sales services to the customers. Improving the frequency of charging stations in the individual places may help to increase the satisfaction rate of the customers and Tesla may further address concerns as per the feedback to create changes. On the other hand, Tesla should adopt a penetration pricing strategy from where Tesla Models along with other electrical equipment may be sold at a relatively low rate in comparison to its competitors which may improve its revenue percentage. There may be a positive impact on the purchasing decisions of the customer through the adaptation of strategies of penetration pricing (Ali and Anwar, 2021). Tesla should bring flexibility in inventory management by setting up minimal levels of stock and similarly, the tools of just-in-time, pull and push techniques may be implemented to improve management of inventory. Other than that, Tesla should diversify its network of supply chains to get easy access to the materials and resources within the inventory.
Providing suggestions to the company to bring more activities as of Research and Development
Tesla may further focus on improving the quality of R&D (Research and Development) to bring Biofuel technology into its Tesla Model, making it a Hybrid model from which those models will run on both Electric Battery and Biofuel. Other than that, Tesla may focus on implementing effective R&D in terms of domestic manufacturing of equipment required to assemble a car. The research may be interesting as it will pave the way for being self-dependent instead of relying upon others and customers will get the benefits of buying Hybrid vehicles at affordable rates.
Implications need to be done in data analytics for future development
The process of Data analytics may be improved to some extent through the adoption of more high-end technologies with equipped sensors, which will provide accurate information regarding the individual internal and external environment.
Conclusion
It had been specified from the above essay that Tesla operating as an electric automobile manufacturer deals with selling EVs, solar panels and other solar equipment along with providing charging facilities to the customers as a part of its main activities. However, Tesla, while performing the activities of data analytics, identified that the company faced challenges in the three main areas of inventory management, customer satisfaction and inventory management. Data has been collected by Tesla by using high-end technologies such as data analytics by following the process of surveys for collection of feedback from the customers and managers along with the existing information of past sales data that have been compared with the existing one. It has been identified that the sudden shutdown of Tesla Factories in Texas impacted a low generation of sales and the lack of proper after-sales service impacted poor satisfaction which may be improved by adaptation of the following recommendations.
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