Case Study –Economic Impact Assessment (EIA) Model

Industry

MICE

Function

Demand Forecasting Model

Business Challenge

The client, a leading MICE venue in the region, provides a wide range of services including hospitality, event services, and media. Managing the profitability of over 500 events across multiple countries presents significant challenges due to scalability issues, data aggregation difficulties, and inaccuracies in calculations. The existing system required significant manual intervention and lacked data security.

Project Objective

Automate the ROI projection for events based on macroeconomic, microeconomic, socioeconomic, and event-specific factors.
Ensure scalability and support aggregated analysis.
Facilitate scenario analysis to assess event performance and optimize ROI.

Approach & Solution

We proposed and implemented an Economic Impact Assessment (EIA) model using IBM SPSS Modeler.
The solution aimed to:

Descriptive Analysis: Analyze key economic variables related to events.
Financial Performance Prediction: Model three components: Direct Contribution, Supply Chain, and Induced Impact.
Performance Metrics Analysis: Assess expenses such as per-diem, visa, and airline costs.
Scenario Analysis: Evaluate the impact of changes in economic variables.

Data used included visitor profiles, travel details, and expenses from various systems. The model was designed to be automated, error-free, and integrate with existing Excel templates.

Project Outcome

Developed an automated predictive model to assess economic impact across different industries and events.
Enabled better planning and budgeting for future events.
Institutionalized the model with staff training for ongoing use and scenario analysis.
Saved approximately 2,000 hours of manual work annually

In addition to bringing in the analytical features such as descriptive analysis and Scenario Analysis, the solution also helped save approximately 2,000 hours of work in a year.