A Data Analytics Report on Harley-Davidson's Business Challenges

This report provides a comprehensive data analytics analysis of Harley-Davidson, focusing on its business challenges and opportunities. It identifies key issues such as declining profitability, decreasing dealership points, and negative earnings per share, particularly in the years 2018 and 2019. The report utilizes theoretical frameworks to link these problems to the organization's operations and market position, highlighting the importance of data analytics in providing insights for improved decision-making. It examines the use of business intelligence and data analytics systems, including dashboards, to address the identified issues and presents a critical analysis and justification of proposed solutions. The report also includes an analysis of the US market share and its impact on the company's performance, along with recommendations for implementing business intelligence and analytics to improve Harley-Davidson's overall performance and profitability. The report emphasizes the need for the company to adapt to changing consumer preferences and leverage data analytics to drive strategic decisions.

Data Analytics
Assignment

Contents
INTRODUCTION...........................................................................................................................................4
Theoretical frameworks to link problem/opportunity of the case organization......................................5
Evidence of knowledge and understanding of business intelligence/data analytics systems..................6
Critical analysis and justification of dashboard solution to address the problematic situation...............6
Conclusion and recommendations for the implementation of business intelligence/analytics system in
the case organization for the focused area of investigation....................................................................8
REFERENCES..............................................................................................................................................10

INTRODUCTION
Data Analytics refers as an effective tool which helps in analyzing the performance of
business, how business can perform more effectively and efficiently to maximize their profit. It
helps the organization to set more decisions which is strategically guided. Data analytics is an
essential because it supports the overall organization to enhance their operations and functional
performances. It refers to the quantitative and qualitative process and techniques which used by
the organization to increase their productivity and profit. Data Analytics deals in diverse types of
data because it is a wide term, with the help data analytics tools and techniques any information
type can be analyses to get insight which can be the effective and useful thing (Hang and Lu.,
2021). This report based on the Harley-Davidson, Inc. is an American motorcycle manufacturer
located in Milwaukee, Wisconsin. The firm has weathered multiple ensures that stakeholders,
level is related, years of poor financial well being and customer satisfaction, and severe
worldwide rivalry to emerge as one of the nation's biggest motorbike producers and a historic
brand globally renowned for its devoted following. In this report identified problematic situation
in three areas. Firstly identified decrease in profitability, secondly decrease in dealership points
in different company and last about earnings per share which is going in negative in Quarter 1 in
2018 and 2019. As per the annual report it is analyzed that company financial position is not
good because company face negative results in operational segments.
The stock is declining. Harley-Davidson shares went down after the motorcycle
manufacturer reported a drop in first-quarter profit growth owing to semiconductors constraints
and other supply constraints. Harley-Davidson is dominating in its main market, however its
stock has dropped dramatically in the last five years, and the company is facing diminishing
motorcycle sales trends as well as an aging market presence. The market for Harley-Davidson
branded bikes is to blame for such a significant drop in income. The primary consumer base is
aging, and youthful riders are more likely to select less expensive choices. The sharp decline in
US consignments over the last five years demonstrates the implications. Harley-Davidson does
not have to expand, but it must be willing to accept shareholders accepting a low share price for
accessibility to the company's cash flows(Kalashnikov, Mach ova and Lewis., 2022). However,
that is a race against the time, and this will be the second Occasion-Cortes government until the
last hog hits the road in the United States.

Theoretical frameworks to link problem/opportunity of the case organization
The theoretical framework is the system that may hold or promote a research study's
hypothesis. The theoretical framework defines and introduces the concept that explains why the
research problem underneath consideration arises. It is critical for the Harley company to
generate and interpret information. Through the use of data analytics, it has become simpler for
Harley to offer excellent business forecasting in the bearish term. Due to a two-week production
standstill in May, Harley-income Davidson's is expected to fall. Due to a two-week production
standstill in May, Harley-income Davidson's is expected to fall. Harley-Davidson declared a two-
week manufacturing slowdown on May 19 of this year. Harley-Davidson has been steadily
declining because since 2008 financial crisis. Profitability are high, but sales have remained
static since 2005, and overall debt is rising steadily(Si., 2022).
Harley-Davidson has a number of methods in place to foster lengthy connections.
Initially, the organization has transformed the customer service while purchasing heavy bikes. It
has ruled the market by producing high-quality items that go a far toward toward delighting
clients. The firm has launched a rigorous quality programmer for its bikes in order to not only
retain and establish long-term relationships with its loyal clients, but also to sustain leading
position. Harley-Davidson has a complete programmer of corporation excursions designed to
bring together and its consumers as well as other enjoyable consumers of its big heavy
motorbikes in field activities.
Profitability is one of the most important aspects of a company's financial soundness.
Humanity's greatest resources are scarce. As a result, the public is keenly interested in each
enterprise's effective utilization of resources. Profit is a way of increasing output, financial
rewards, investment returns, and state income. Revenue is also utilized by businesses to fund
employee awards, charity giving, and other activities. As a result, it is critical for owners,
employees, the government, and society in general to maintain the firm successful. As a result,
study into the elements that promote firm profitability is constantly vital. As per the operational
segment it is analyzed that in 2020 company profitability in negative manner. As per the
dashboard it is analyzed that from 2016 to 2020 motorcycles and its products was declined
continue because of less selling of their products(Wilder and Mitosis., 2019).

It pertains to how data analytics assists Harley-Davidson in evaluating massive data in a
productive and cost-effective manner, displaying it in a structured fashion, and assisting the team
in meeting their aims in an equitable way. This also encourages and improves cooperation and
organizational efficiency by enabling the Harley Davidson operator to share analytics data and
outcomes with employees. The many improvements and gaps in a Harley Davidson become
measures and indications that a company may do to raise the productivity and effectiveness in
overall functioning, resulting in a rise in production. Numerous organizational choices are made
as a result of gut instinct rather than real proof. The chief factor could be that information are not
being collected and analyzed on a current data basic principle, or that there is a lack of reliable
performance data that will help Harley Davidson make better decisions, but with the help of
analytics, Harley can change the information that is beneficial and available for the
implementation stage, allowing the firm to improve its decisions(Kong, Ho and Sun., 2020).
It claims that if Harley-Davidson is not concerned with the customer's expectations and
wishes, the company's business would suffer. Customers' minds shift since they are always
concentrating on discovering new trends and information. Due to the large volume of customer
data, it has become impossible and difficult for the organization to modify all perceptions of
consumer data without integrating the analytics capability. Data analytics provides an effective
understanding of how the targeted market works or thinks, as well as any changes in the market.
If Harley-Davidson is aware of a change or shift in customer behavior, it may provide a critical
advantage or benefit to the company, allowing it to analyses and observe market developments
and deal with them in an effective and efficient manner(Wang, 2019).
Evidence of knowledge and understanding of business intelligence/data analytics systems
Attached in Excel sheet

Above graph shows operating result by segments from year 2016 to 2020 about the financial
services and motorcycle & related products
Above graph shows the dealership points from year 2017 to 2020 of geographic location of US,
Canada, EMEA, Asia Pacific, Latin America.
08/07/1905
09/07/1905
10/07/1905
11/07/1905
12/07/1905
-500000
500000
Operating results by segments
Motorcycles & related products Financial Services

Above graph shows the performance of business such as how much is business sales revenue
and total cos, profit from the year 2016 to 2020.
Above graph shows that US holds 21.1% of market share in whole market.
Business Performance
(from 2016 - 2020)
Sales revenue
Total costs & expenses
Profit

Above graph represents the Percentage of US share in the market that Honda holds 18% of share,
Kawasaki holds 13% of share, BMW holds 4%, Yamaha holds 11%, Harley holds 21%,
Suzuki holds 5% of share in the market.
Critical analysis and justification of dashboard solution to address the problematic situation
As per the dashboard it is analyzing that company face various problem that impact on the
brand in negative manner. Harley has mainly faced decrease in profitability even in 2020 they
are facing negative profitability which is directly impact n the dealership. If company has not
good customer so people are not like to take dealership. As a result company faces huge losses
that impact on company earnings per share. In the year 2018 and 2019 to quarter one face
negative revenue, net income and earnings per share.
It is requiring sorting out this problem and taking actions to set well image of company and
increase their profitability. The world-class distribution network of Harley-Davidson is essential
to the firm's expedited approach and its eventual effectiveness. The business will put in place a
functions to support to greatly enhance the power of the dealership network and the user
experience, empowering the top-performing and most innovative distributors to promote
innovation and success for both them and Harley-Davidson — whereas delivering the first-rate
customer service the brand recognition for throughout an expanding range of products and
clientele. Our plan is supported by a significant potential to use and enhance the power of the
Harley-Davidson brand. To encourage riding, promote moot-culture, and create a larger, more
fervent network of Harley-Davidson riders, they are improving the Harley-Davidson brand.
21%
18%
11%13%
5%
4%
29%
% Share in USHarley - Davidson
Honda
Yamaha
Kawasaki
Suzuki
BMW
Other Brands

In addition to more motorcyclists, the management believes that More Roads to Harley-
Davidson will add value, enhance and stabilize the current business, boost profits and revenues
keep improving Harley-Davidson Engine Manufacturer Return on Invested Capital (ROIC), and
enable the organization to distribute more shareholders with additional cash. The team intends to
finance the entire expedited approach via extensive reducing costs and redistribution of replanted
invested capital and infrastructure, such as able to operate investor via 2022 of $450 to $550
million and capital investment through 2022 of $225 to $275 million. The expedited tactic will
necessitate significant investments to alter the course of the global industry. According to the
firm's projections, More Highways to Harley-Davidson would increase yearly sales by more than
$1 billion from 2017 to 2022
The business thinks its expedited approach supports and is in keeping with its goals to increase
operating profits and boost revenue growth. Despite keeping its present investing and
performance characteristics and capital allocation approach, the business aims to finance growth
advantages. Harley-funding Davidson's philosophies will be on improving the premium brand,
sustaining and bolstering the business operations, and buying assets in successful, economic
expansion initiatives. Those guidelines, together with a strict capital allocation problem, are what
they anticipate will enable Harley-Davidson to operate with increased overhead effectiveness
and cost efficiency.
By producing leads defined as consumers who indicate an interest in chatting with a
representative through completing a form on the dealership's website the AI technology Albert
used in the Harley-Davidson instance increased in-store visitation. Albert started by examining
historical user information from Jacobi's client relationship management (CRM) framework to
isolate trying to define attitudes and traits of elevated previous clients: persons who either
finished a buy, decided to add a product to an internet cart, regarded web content, or were some
of the top 25% in terms of time spent on the web page. Albert then worked with original content
(headlines and visuals) supplied by Harley-Davidson and main performance objectives. For
Harley-Davidson, AI analyzed what was performing and what wasn't throughout digital
platforms, and then applied what it discovered to develop new conversion possibilities. In other
terms, the technology only directed resources to what was shown to work, enhancing digital
advertising ROI. The AI edge lies in removing guessing, collecting and analyzing massive

amounts of data, and best using the ensuing insights. AI technologies do not require the creation
of personas; instead, they discover real consumers in the open by evaluating which genuine
online behaviors are most likely to lead in converts and afterwards locating prospective buyers
internet who show these behaviors
To solve their issue company provides customize products. One of the few things that
Harley-Davidson provides is the ability for consumers to alter or personalize their motorbike.
Only a few big automakers enable this level of vehicle rationalization, whether four wheels or
two wheels. Co lours, tires, seats, racks and backrests, windscreens, exhausts, and intakes may
all be customized by Harley-Davidson. For the dashboard solution it is required to company
make different strategies which are helping to sort out these problems. There are applying AI for
the new bikes that help to attract customer and help to attract more dealers. As a result it helps to
increase profitability that impact on the EPS, net income and on any other segment.

Conclusion and recommendations for the implementation of business intelligence/analytics
system in the case organization for the focused area of investigation
According to the aforesaid research, data analytics plays an important and efficient role in
the management and running of the Harley-Davidson business. As it aids in the examination of
the entire data set in order to determine which areas, departments, activities, and processes of the
company are lacking. It is a powerful technique used by multiple companies, including Harley-
Davidson, to make more successful and knowledgeable management decisions. Not just for
organizational purposes, but also for various scientists and scholars to discover and evaluate
diverse ideas and models. With the proper use of data analytics technologies, Harley can enhance
its productivity and income, allowing the Harley Company to stay in the market for an extended
period of duration.
Despite the fact that the Harley-Davidson brand has stayed strong and strong even during
turbulent economic times, there are still various problems that management has not everything
said. Its present value proposition is to create excitement for its goods. Nevertheless, due to
shifting and unexpected client tastes, as well as the entry of new market participants, this may
not be a long-term strategic approach. Furthermore, the company's quest to enter the light
motorbike industry has been unsuccessful thus far, since conventional techniques may no longer
be effective in a competitive sector. In light of this, the guidelines provided have been proposed
as a strategy for Harley-Davidson to stay profitable while expanding its strong brand. The
Hardwired is the Company's 2021-2025 strategy plan, which is governed by its vision and
mission statement, and was unveiled on February 2, 2021. The strategy aims for lengthy
sustained profitability via concentrated initiatives that grow and reinforce the brand while driving
value for everyone involved. The Firm's goal is to strengthen its status as the worlds largest most
attractive motorcycle manufacturer. Attractiveness is an emotional motivational force.
Today, Facebook, Google, and Amazon are at the forefront of AI usage. It has provided
them with a substantial competitive edge because allowing them to approach clients with highly
tailored marketing efforts. Other corporations, though, are beginning to enter the AI competition.
Albert the AI assisted the Harley-Davidson business in increasing sales volume by producing