Chickasaw Nation Division of Commerce

Predictive analytics and statistical modeling increases the accuracy of financial forecasts

Published on 27-May-2013

"By spreading analytics to the operational side of the business, we would gain a better understanding of how the patrons of our hotels and casinos behave, what the costs are, and where the opportunities for increasing profits can be found." - Patrick Neeley, Chief Financial Officer, Chickasaw Nation Division of Commerce

Customer:
Chickasaw Nation Division of Commerce

Industry:
Media & Entertainment

Deployment country:
United States

Solution:
BA - Business Analytics, BA - Business Intelligence, BA - Performance Management, Big Data & Analytics, Big Data & Analytics: Customers, Big Data & Analytics: Operations/Fraud/Threats, Smarter Planet

Overview

With a tribal jurisdictional area encompassing 13 counties in South Central Oklahoma, the Chickasaw Nation is a federally recognized Native American nation. The Chickasaw Nation Division of Commerce (CNDC) is the Nation’s economic arm and strives to support the Chickasaw people and their way of life through a diverse range of enterprises, including banks, retail stores, hotels, casinos, radio stations and many other businesses. It employs more than 6,000 people.

Business need:
With a year–over–year growth rate of around 20 percent, the Chickasaw Nation Division of Commerce has successfully used gaming operations to support its tribal areas. But its rapid growth added complexity to processes and systems, making financial and operational reporting difficult.

Solution:
The Chickasaw Nation Division of Commerce uses advanced predictive analysis and complex statistical modeling to steer its growing operations to success, making decisions based on fact instead of intuition.

Benefits:
The IBM solution helped accelerate monthly financial reporting cycles, save hundreds of hours on manual reporting and enable the organization to conduct analysis on marketing promotions 75 percent faster.

Case Study

With a tribal jurisdictional area encompassing 13 counties in South Central Oklahoma, the Chickasaw Nation is a federally recognized Native American nation. The Chickasaw Nation Division of Commerce (CNDC) is the Nation’s economic arm and strives to support the Chickasaw people and their way of life through a diverse range of enterprises, including banks, retail stores, hotels, casinos, radio stations and many other businesses. It employs more than 6,000 people.

The Opportunity
With a year–over–year growth rate of around 20 percent, the Chickasaw Nation Division of Commerce has successfully used gaming operations to support its tribal areas. But its rapid growth added complexity to processes and systems, making financial and operational reporting difficult. Only a few skilled users in IT and finance could access the data, which created a bottleneck and kept key decision makers from gaining the insights they needed to make quick, well-informed decisions. The organization needed an advanced reporting and analytics solution to enable business users to perform near-real-time analysis on a wide range of financial and operational data.

What Makes It Smarter
According to the National Indian Gaming Commission, tribal gaming operations in the United States generated USD26.5 billion in 2010 — more revenue than that of Las Vegas and Atlantic City combined. These casinos are big business, but they are also a means for supporting reservations, so the stakes are high. The Chickasaw Nation Division of Commerce uses advanced predictive analysis and complex statistical modeling to steer its growing operations to success, making decisions based on fact instead of intuition. In addition to more accurate financial planning, including revenue forecasts and cash flow analysis, the business analytics solution allows managers throughout the organization to track their performance in near–real time and apply valuable insights to day – to – day decisions. For instance, by using gaming-specific analytics, the organization can analyze subtle patterns in customer behavior — including what they eat and drink, which activities they pursue and how long they stay — and connect them to revenue streams. These insights are particularly useful in marketing campaigns, helping managers determine which promotions to run based on profitability projections.

Real Business Results
• Accelerates monthly financial reporting cycles by 50 percent, giving decision makers faster access to more accurate information
• Saves hundreds of hours on manual reporting, cutting budget preparation tasks by 50 percent and obviating the need to hire additional staff despite 20 percent YOY business growth
• Enables the organization to conduct analysis on marketing promotions 75 percent faster

For More Information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com/cognos.

To learn more about Chickasaw Nation Division of Commerce, visit
www.chickasaw.net.

Products and services used

IBM products and services that were used in this case study.

Hardware:
System x: System x3650 M3, System x: System x3850 X5

Software:
Cognos TM1, Cognos Business Intelligence, SPSS Statistics Standard, Cognos Planning

Legal Information

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