Through the use of an entity relationship diagram, your board and management can assess the whole business in a functional way and create strategy that is easily actionable. By creating visual pictures of each entity, the data allows a story to unfold that can help quickly analyze which units of the business may need more attention at this time than another or predict potential effects and changes.
Another example is the new US tax law, which represents a potential profits bonanza with the slashing of the corporate tax rate by 40% all at once. Many organizations originally based in the US are considering repatriation, and organizations with US operations are thinking about doubling down on their investment. Entity data visualization can help analyze the impact of transferring property, plants and equipment to the U.S. so that this unique opportunity isn’t lost, with strategic planning for these changes coming from the board down.
The business of managing various entities and subsidiaries can be difficult for organizations of any scale to effectively evaluate and plan for. Entity relationship diagramming is a visual means of seeing those entities and subsidiaries in a more encompassing manner.