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The No-Frills Guide to

People Analytics
for Practitioners

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


Contents

1 Foreword

2 Chapter 1
Introduction to People Analytics

3 Chapter 2
HR Information Systems and Data

4 Chapter 3
Measuring What is Important

5 Chapter 4
Analysis Strategies

6 Chapter 5
Articulating Business Value of HR Programs

7 Chapter 6
Choosing an Analytics Solution

8 About SplashBI

© 2021 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


Foreword

Talent leaders have been waiting for a organizations' largest asset has been tough
seat at the table for some time now. Every even for the best of the best.
time HR seeks strategic involvement in
An opportunity is being missed.
the business, it is asked to show evidence
linking HR investments to either top- or According to Deloitte Insights, while 71% of
bottom-line performance or gaining companies view people analytics as a big
competitive advantage and this is where ticket item, implementation has been slow.
talent leaders falter. While most business Despite the enormous focus on people
leaders/ functions are focused on analytics today, there is a good deal of
competition in the industry and challenges confusion on where HR should be focusing
such as innovation, productivity, scalability, their attention and what they should be
customer centricity, etc., HR has been doing. This guide will outline how talent
focusing on finding the right talent at the teams can operationalize their people data
right time and at the right cost. Articulating and link practices to business KPIs.

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


01 Introduction to
People Analytics

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


People analytics, also known as data available to organizations grew
exponentially. The widespread use of
HR analytics, is the application
analytics solutions across business units like
data analysis methods and sales and marketing helped early adopters
techniques to human capital transform how they transacted day-to-day
with the end goal of improving operations. It also drove up adoption of
business outcomes. analytics solutions and made it more cost-
efficient.
It is an interdisciplinary approach at the
intersection of data science, behavioral For HR, however, the story has been a
science, technology, and people strategy. little different. While some would argue
People analytics helps companies that analytics and number crunching have
evaluate data to establish a relationship traditionally been critical to the HR function,
between people processes/initiatives and analytics as we know now, backed by
performance outcomes. machine learning and artificial intelligence is
relatively new to HR.
In other words, people analytics helps
organizations understand how people, Our State of the HR Analytics report 2021
processes, and technologies are impacting found that while there has been a marked
the business. Over the last decade, we've increase in operationalizing insights from

35%
witnessed a marked uptick in the adoption analytics, more than a third
of people analytics as the volume of

of the organizations surveyed struggle to


use people data and insights meaningfully
to support business goals.

In this guide, we'll provide actionable steps


to help you start and make the most of your
people analytics program.

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


02 HR Information
Systems and Data

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We hope you're now beginning to develop an understanding of people analytics
and the potential it holds for businesses. Before we get into the actual analytics
piece, it is worth taking the time out to understand the lay of the land. You already
have multiple data sources in your organization in spreadsheets, sales databases
and even learning and development records that can tell a compelling story when
the pieces come together.

In this chapter, we look at:

Information sources for people analytics:


What are you likely to find and where?

Preparing the data:


What data looks like, getting into analytics tools, and
preparing it for analysis?

Big Data:
What it is and why it's valuable to organizations?

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


Understanding Information Sources for
People Analytics

The information available in the form of data to be analyzed will vary greatly
depending on the type of organization. It is when this information is expanded,
linked together, and analyzed with rigorous statistical techniques that we find what
is truly happening in an organization.

However, the success of


people analytics and
Skills and qualifications
predictive analysis depends
on good data from valid
information sources. Useful Measures of particular
competencies
data for people analytics
often includes the following
information: Training attended

Levels of employee
engagement

Customer satisfaction data

Performance appraisal
records

Pay, bonus, and


remuneration data

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


Now, moving on to some of the key data sources
that are used in HR analytics:

Recruiting data Demographic data


Obtained from the applicant tracking Employee records including
system (ATS), recruiting data includes employee name, gender, residence,
the number of candidate applications, position, department, joining date,
candidate characteristics, sources termination date, and other variables.
of applications, and other recruiting
metrics.

Multidimensional
databases
Employee attitude
(e.g., Cognos, Business Objects) - Also
survey known as online analytic processing
Data includes information from (OLAP) databases, remove data from
employee surveys assessing traditional relational systems to create
issues like job strain, employee a data warehouse. They store data
engagement, satisfaction, experience, by 'dimension' (i.e., such as a division
and others. or a year of hire) and calculate the
In addition, organizations frequently information. When you send a query,
store information in databases that the database retrieves answers
consolidate employee inputs from accordingly.
different sources. These include four
major types of databases.

Object-oriented
Relational databases databases
(e.g., Workday) store data as 'objects';
(e.g., SAP, Oracle, or Sybase) store
the 'employee object' would store
information in tables. Most HR systems
data about employees such as name,
use relational databases to link tables
address, start date, etc. It also stores'
together and query information using
rules' or 'methods' such as 'gender
the structured query language (SQL).
must be M or F' or 'start date must be
after 1900'. Object-oriented databases
are flexible and quickly adapt to
changes or additions in data and make
it available for all users.

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


Big data databases
Hold enormous amounts of data, going up to hundreds or even thousands of
terabytes (called petabytes). It breaks down data into small pieces for parallel
processing. Big data technologies can run quick queries on vast amounts of data and
work with structured and unstructured data.

Once you've gathered all this data, the next step is preparing data for analysis. Raw
data is typically unstructured, i.e., not organized or labeled, and current business
intelligence (BI) solutions struggle with unstructured data.

Raw data is difficult to analyze as it may contain missing values, inaccuracies, and
other data errors. Data from internal and external sources have different doormats
that require reconciliation. Accurate and consistent information is key to generating
valid results in BI interfaces.

Fixing errors, validating, and consolidating datasets are all a part of data preparation.
It involves blending different data sets, eliminating missing values and outliers,
and addressing inconsistencies that could distort the results. It also helps organize
data for use in other business/HR applications and reduces the cost of analytics.
Preparing data ensures that you receive meaningful and actionable insights.

Data preparation is especially beneficial for big data environments storing structured,
semi-structured, and unstructured raw data in predictive analytics, machine learning,
and other large data sets applications.

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


Preparing the data

Data preparation refers to However, experts often distinguish between


data wrangling and data preprocessing,
gathering, combining,
with the earlier being used to describe
structuring, and organizing cleaning, structuring, and transforming
raw data for use in business data for use.
intelligence (BI), analytics, and Information Technology (IT), BI, data
data visualization. scientists, data engineers, or data
Data preparation typically entails data management teams use data preparation
preprocessing, profiling, cleansing, tools to integrate data sets into the data
validation, and transformation. It often warehouse, NoSQL databases, or data
involves pulling together data from internal repository.
and external sources. Data preparation is
also called data prep or data wrangling.

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Steps for Data Preparation
Although there are differences in how professionals and applications
perform data prep, the fundamentals remain the same. Here are some
of the key steps involved in data preparation:

Data Collection or Gathering


The first step is to collect data from various data sources like operational
systems, warehouses, and repositories. It is essential to ensure that the
collected data is congruent with your objectives for analysis.

Data Assessment and Profiling


After the data is collected, you need to understand what it contains and
identify patterns, relationships, and attributes.

Data Cleaning and Structuring


Identified anomalies, inconsistencies, and errors are corrected during
data cleaning. You might eliminate outliers or fill in the missing values to
complete your data steps. Cleaning is followed by structuring data into
organized files for analysis, e.g., converting CSV files to tables or other
suitable formats for BI applications.

Data Transformation and Enrichment


After data structuring, you will need to transform this data into a unified
and usable format. It also makes your data more fluid - enabling wider
application across a range of information needs. For example, you might
need to create new fields or columns to aggregate data from existing ones.

Data enrichment refers to connecting data with additional information to


make it more insightful for a use case.

Data Validation, Storage, and Use


The last step is to validate and store data for usage. Data validation helps
you determine if your data is accurate and meaningful to your analysis.
Finally, data is stored in the data warehouse, repository, or other third-party
applications and made available for users.

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


Big Data

As the name suggests, Big Data refers to a large volume of data


that grows exponentially with time. Big data is characterized by
the three Vs - contains greater variety and arrives in increasing
volume and higher velocity.

Volume Velocity
Refers to the amount of data. With Big Measures the rate at which data is
Data, you will have to process a lot of received. Internet-enabled smart
low-density, unstructured data. With products process data in real-time,
an increasing focus on data science, while other data may be shared in
it is not uncommon for organizations batches.
to have hundreds of terabytes or even
petabytes of data.

Variety
Traditionally, data was collected and stored in one place. With
the rise in big data, data is stored and shared in nontraditional
formats. It does not simply mean data from various sources.
Variety also means using analysis to interpret existing data and
presenting it in fresh ways.

Traditional data processing software is unequipped to manage


such large and complex data sets. The use of big data to
address business problems is gaining momentum, especially in
people analytics.

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


03 Measuring What is
Important

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Despite the popularity of people analytics, organizations falter in successfully implementing
it. According to Deloitte's 2020 Human Capital Trends survey, only 56% of respondents
reported that their organizations made moderate or significant progress in people analytics in
the past 10 years.

Let's look at how organizations adopt analytics with existing tools and
strategies.

Strategic Human Capital Measures: Using the


Existing HCM/HR tech Stack to Implement
Analytics Strategy

Implementing an analytics strategy is not as complicated as it looks. Analytics is using data


science to understand your HR data and can be done using your current HR Tech stack.
An HR tech stack usually includes Applicant Tracking System (ATS), payroll management,
administration software, and talent management software. People analytics solutions pull
data from these sources, and you can use your HR metrics to perform HR analytics.

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


Human capital metrics can help you assess whether the investment in
employees is producing desired results. Here are some important HR
or HCM metrics that you can track with your HR and HCM stack.

Time to hire:
Total time taken to assess and onboard a candidate.

Cost per hire:


Total amount of money it costs for every new hire.

Absence Rate:
Unscheduled absence rate over time indicates a worsening work environment.

Employee Productivity Index:


This traditional metric measures employee productivity. But with changing
outlook toward employee productivity, companies are letting this metric go.
Overtime Expense:
Increasing overtime rates can be followed by absenteeism and turnover.

Training Expense:
Helps assess training and development costs for each employee.

Training Efficiency:
Helps assess the effectiveness of your employees' training and development
opportunities.

Time since last promotion:


A straightforward metric showing why top employees leave

Early Turnover Rate:


The percentage of new hires leaving before one year. It helps assess the efficacy
of your hiring strategy.
Revenue per employee:
Total amount of revenue every employee brings to the company.

But how do you collect data to support your data analysis? Your trusted survey methods are
useful here. A detailed and efficiently administered survey study can help you obtain notable
data for analytics.

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


The Strategic Value in Surveys

With a surge in people analytics, organizations progressively use surveys to map business
issues and employee experience. But without a plan, your survey will generate inconclusive
data. So, despite the popularity of the survey as a tool, organizations face the following
questions:

How can you use a survey strategically?


How often should you survey your organization?
How can you incorporate survey results into people analytics?

Surveys are an excellent opportunity for HR leaders to access every person in the
organization and gain perspective. The data also provides a chance to direct the company in
the right direction. With technology supporting survey research, you can analyze data rapidly,
use data in various ways, and shape relationships with other data sets to derive sophisticated
conclusions.

Regarding frequency, you should survey as often as required, but if you are prepared to take
action. Research from the Josh Bersin Academy revealed that organizations that conducted
surveys and followed up with action during the COVID19 pandemic were more than two
times as likely to meet financial goals than organizations that neither surveyed nor took
action.

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


When designing a survey, focus your efforts in getting useful
feedback by basing questions on these ideas and considerations:

the What are the


Identify What typ
n g e s your core issues eo
informati f
challe y on
compan that need to would h
in g be addressed? elp
is fac solve the
se
problem
s?

ill the What


How w a add ques
at will y tions
new d he appro ld
ie
to t priate
g inform
existin n? ation?
r m a tio
info

What type of
survey best
do answers Det
How an to e
p l your concerns turn rmine
you ss the (census vs. aro
u
the
a s s e
ted sample)? resu nd for
lec lts
col ta?
da

These questions will help you plan and implement a strategic study that produces desirable
results. If done well, you will have data that you can revisit to conduct follow-up surveys or
different analyses. With people analytics solutions, the process becomes efficient, and you
can regularly run studies based on your needs.

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


04 Analysis
Strategies

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In this section, we discuss how you can move from simply producing
reports to drawing conclusions and predictions. We also look at
maintaining data privacy and the different types of data you will come
across.

From Descriptive to Predictive


Analytics

Strong data is the foundation of all predict HR or business outcomes, e.g., what
people analytics practices. Data in HR has drives employee performance or causes
traditionally focused on descriptive analysis an employee to leave the organization.
and reporting. Descriptive reports present Furthermore, you can apply these predictive
data as it happens at a given time. Once models to make tangible predictions
enough data is collected, you can spot about particular results or outcomes (e.g.,
trends and analyze patterns from this data employee turnover or commitment) that you
Adopting predictive analytics is a decisive expect to encounter in the future.
step in the direction of advanced analytics
Deloitte's report found that 52% of surveyed The ability to run predictive analyses is
companies planned to invest in data compelling and opens various avenues
collection and analysis within the year. for your business. You can use predictive
modeling to predict hiring, turnover, and
Predictive HR analytics applies predictive revenue. While venturing into data analytics,
modeling from inferential statistics to HR or it is crucial to learn about data management
people data and makes informed decisions and security. Problems in your data will lead
about key performance indicators' causes, to questionable results and hamper your
predictors, and factors. Predictive analytics progress.
enables you to test statistical models to

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Data Integrity

According to Sierra-Cedar research, the average number of HR


systems increased from 8 to 11 in 2019. Additionally, the HR data and
analysis market is over $2 billion annually and is likely to double by
2025.

HR systems increased from 8 to 11

Companies have abundant data, collecting The Egress' Insider Data Breach
data about employee satisfaction, well-
being, engagement, and mood. With Survey 2021 found that 94% of
internet-of-things and cloud-based organizations have experienced
computational systems, concerns regarding
data privacy are rising. A majority of 79% of insider data breaches, of which
Americans expressed concern about how 75% of instances occurred due to
companies use their data.
security lapses by employees.
Data integrity refers to your data's accuracy,
reliability, and consistency. It also includes More than anything, data privacy is about
data safety and compliance with regulatory awareness – so invest in training and
bodies and data security. When data educating your workforce to tackle data
integrity practices are followed, your data threats. Ensure that sensitive information
remains accurate and reliable regardless is available to only certain people and
of the duration of storage and frequency of appropriate authorization measures are in
access. Your responsibility is to honor the place.
data privacy laws and adopt data security
measures. It is necessary to protect your While exploring people analytics tools,
HR data from a leak or threat from external choose a solution that is serious about
sources. data privacy and security. The service
provider should have a dedicated security
Although companies are vulnerable to team, independent audit and penetration
external threats, a majority of data test reports, and good market credentials
breaches occur from the inside. and should be GDPR compliant.

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


Types of Data

The data you collect can be of different types and analyses depending on the data type. A
fundamental understanding of data types is important to conduct and interpret data analysis.
There are two major types of data: Qualitative and Quantitative. Each data field is known as a
variable, something that changes or varies.

Qualitative data Quantitative data


refers to data that refers to all numerical
cannot be measured data of your organization
numerically, e.g., and is suitable for
employee experience stories are statistical analyses. The employee
qualitative data and include images, surveys that you conduct and run
videos, or text. Qualitative data can analyses for are quantitative data
be analyzed by dividing them into Quantitative data can be further classified
categories, e.g., male and female. into discrete or continuous.

Discrete data Continuous data


is distinct or separate include variables that
and include nominal can be mapped on a
and ordinal variables. measurement scale and
Nominal variables can be categorized include interval and ratio
into types, while ordinal variables can variables.
be ranked in order of importance. These • Interval Variables – interval variables
variables do not support fraction values. are measured on a numeric scale and
can assume any point on the scale.
However, the interval scale assumes
You can classify the data to identify the an arbitrary zero.
variables and conduct appropriate statistical • Ratio Variables – ratio variable is
analysis. Not all statistical analyses can be similar to an interval but with a defined
run on all variables. For instance, you cannot zero point.
use nominal and ordinal data for predictive
analyses. But you can use different types
of data to supplement your results. Your
statistical knowledge will also help you
get the best out of your people analytics
solution.

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05 Articulating Business
Value of HR Programs

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Over the years, the role of HR has evolved from transactional to a more strategic one.
Recognizing that people are crucial to improving the top and bottom-line has led to
rganizations integrating HR analytics into their business strategy.

More than 70% of companies are investing in people analytics and integrating data to
transform their business. Whether measuring employee performance, engagement, or
turnover, people analytics can retrieve large unstructured datasets to inform key HR
decisions. People analytics helps you improve efficiency and productivity while reducing
operational costs. HR analytics leaders take advantage of employee data to attract, manage
and retain talent, resulting in a higher Return on Investment (ROI).

LinkedIn Global Talent Trends


85%
2020 reported that 85% of
talent experts identified people
analytics as critical to the future
of recruiting and HR before
COVID-19.

Now emerging from the crisis,


people analytics remains an
$9 B area of growth and investment.
According to the PMR study, the
HR analytics market is expected
$2.8 B to grow from US$ 2.8 billion in
2022 to US$ 9 billion by 2032 at a
CAGR of 12.4%.

Following the pandemic, the market has significantly changed, shining a light on the
challenges of increasing skill gap, the importance of employee experience, and growth in HR
technology.

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Adopting analytics can help organizations:

Understand attrition and Improve employee


the reasons behind turnover engagement

Boost work efficiency and Promote learning and


productivity development

Support employee
career growth

But how does people analytics impactbusiness outcomes?


How can you measure the impact?

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


Measuring HR's Impact
on Business Outcomes

The use of data in HR is not a new concept. Managing an organization and increasing
Over decades, HR has accumulated its overall performance begins with a
employee data to understand headcount, systematic understanding of the complete
turnover, and performance evaluation. But, business entity and its operational context.
the focus was on gathering information Next to advanced statistical solutions, basic
rather than using the data to make informed metrics can be valuable in gaining insights
talent decisions. With the use of HR tech into business and people's performance.
and the Human Capital Management (HCM) Measuring different HR and performance
suite, organizations could now play with metrics allows executives to track patterns
data to draw actionable insights. So began within the organization and undertake future
the first use of HR analytics. predictions.

Before jumping into a new HR analytics strategy, you should:

Identify Your Business Needs & Goals -


measuring behaviors, practices, and mindsets will help you
understand your workforce culture, organizational dynamics, and
business needs. By identifying business needs, you gain better
insight into the type of data to collect, how to collect, store and
manage data, and connecting your data to business outcomes.

Determine Your Technological Capabilities -


before you identify key metrics for your goals, you must account for
your analytical capacity. What tools do you have? What additional
technology do you need? What tools from your existing tech stack
can you use?

Metrics to Track –
once you identify your business needs and goals are identified, you
can decide the metrics to track. For example, if you want to repurpose
your recruitment strategy, you must track recruiting metrics like time
to fill, time to hire, candidate dropout and cost per hire.
Business strategy, HR Analytics &
Competitive Advantage

Does people analytics give you a competitive advantage? The short answer is: YES. But,
HR analytics is no magic pill to improving business outcomes instantly. It is a strategic and
deliberate use of data science practices to understand the employee life cycle, recognize
pain points, and inform your business decisions.

There's no doubt that people analytics is a


crucial component of your business strategy.
Organizations aiming for business advantage
base their decisions on hard facts derived from
evidencebased analyses. Using the right data
helps you gain a critical perspective, reveal
hidden trends, and reasonably predict
outcomes, giving you a competitive advantage.

These describe the core of the financial


impact of people analytics on your business.
Focusing on inter-related metrics can help top
organizational leaders (CHRO, CEO, CFO) make
data-driven decisions.
06 Choosing an
Analytics Solution

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If you have identified the need
What is the scope and capability of
to invest in a dedicated analytics the solution?
solution but don't know where to Can it leverage multiple data
start, ask potential vendors a few sources?

important questions. Is it extensible? i.e., feature


pre-built content like charts/
reports/dashboards? Can the
end user manipulate and use the
How long does it take to set up and
data easily without specialized
run?
knowledge in data science?
Do you need a dedicated team of
What comes with the prebuilt
data scientists and analysts to run
content? What features can
the operation?
beginners use right out of the
Does the solution touch on all box?
HR areas (talent management,
Can intermediate users
recruitment, learning, workforce
configure reports?
scheduling, etc.)
Can advanced users like
How does it support diversity and
CHROs and CEO's tie in CRM
inclusion?
and financial data to develop
Where is the data stored (in enterprise analytics?
the BI platform or your physical
Is this easy to interoperate with
infrastructure/cloud)?
all of your analytics?
What are their data privacy
measures?
Must-Have Features in a
People Analytics Solution

Automation Interoperability
The solution should be able to Can you utilize the solution with other
connect to multiple sources easily BI and visualization tools such as
and schedule and distribute the Tableau and PowerBI for specific
dashboards or data. usecases? An ideal solution should
be able to run concurrently with other
BI, analytics, and visualization tools.

Integrations
The solution should easily integrate
with your existing tech stack. This
Data Access and
helps avoid unnecessary time Transparency
transferring data from your tools to The data for analytics will be shared
the analytics platform. between various team members. So
consider if the solution supports
simplified sharing and dashboards.

Data Visualization
Data visualization using dashboards
simplifies the insights making it easy Data Privacy and Security
for everyone to understand the results.
Visualizing trends and patterns is an Growing concerns over data privacy
essential feature of any analytics tool. require vendors to create robust data
privacy measures. Your solution
should protect your employee data
and against data breaches. Also, check
how data sharing is monitored and
Ease of Implementation access to control. This allows you to
share data with authorized members
Lastly, the solution should be easy to
and employees. Modern solutions like
set up and with customer support to
SplashBI offer rolebased security and
respond to your queries. The solution
leverage their internal security so that
should be flexible to deploy on any
your IT or cybersecurity teams don't
cloud or environment. Most solutions
need to rebuild it.
only support cloud deployment.
SplashHR can be deployed on-
premise, on-Cloud (public or private),
or as a hybrid solution.

© 2022 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com


About SplashBI

SplashBI delivers data-driven decisions by SplashHR is our People Intelligence


providing instant access to data from solution, including a large number of pre-
disparate systems in reports, visualizations, built KPIs and dashboards. Our solution
and trends. is also fully configurable by the user.
With SplashHR, managers now have the
Our Philosophy is Data Never Lies and insights to improve their DEI, recruiting
Data, Never Dies. SplashBI offers insightful strategies, employee engagement, talent
pre-built content, powerful ad-hoc management, and much more.
reporting, and in-depth dashboards through
our proprietary data pipe models for faster
go-live and quick ROI.

https://splashbi.com/

© 2021 All Rights Reserved | Splash Business Intelligence Inc. | www.splashbi.com

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