Businesses have long recognised the importance of using data analytics to improve the customer experience. Analysing market trends and consumer activity, businesses adapt, innovate and optimise their products and services to keep customers happy and increase profits. The focus on customer-orientated analytics has, however, resulted in businesses failing to harness the power of their data to optimise their operational processes and significantly improve margins – although this is changing.
In a recently published whitepaper, from Capgemini Consulting, 70% of the companies included in the survey now put more emphasis on operations than consumer-focused processes when carrying out analytics.
Most businesses are forecasting increased costs and margin squeeze, and with 90% CFOs having cost reduction as a key objective in 2017, operational analytics can drive the initiatives required to achieve these objectives.
Through identifying ways to significantly optimise operations, data analytics will predictably raise profits. The research outlined in the Capgemini whitepaper shows that operational improvement can increase profits of up to $117 billion globally, compared to customer analytics which ‘only’ creates $38 billion
Reduced downtime, improved productivity, better capacity utilisation, more accurate forecasting, higher flexibility, streamline production processes, and improved efficiency - ultimately, your business will see significantly increased profits by using data analytics to help make the important decisions about your day-to-day operations.
Whilst some businesses prefer to utilise expansive/expensive high-end consultancy firms, every business can achieve the same results for less expense. New, self-service data analytics technology is faster, cheaper and, most importantly, allows the business to make effective decisions at the most valuable decision-making point – in the hands of the employees.
Implementing a decision-making process, based on the insights provided by operational data analytics, is key to achieving the business goals and employees to achieve their individual objectives. By obtaining a single view of operations data, and sharing the relevant insights with employees, it is much easier to make informed, effective decisions that will improve company performance and operational efficiency.
In summary, there are 4 key reasons why companies of every shape and size should put a greater focus on operational analytics:
- Increased profits - by identifying areas where money can be saved in the basic operations of your company, processes can be streamlined, optimised and efficiency increased.
- Competitive advantage - whilst your competitors may be focusing on customer-related analytics, efficiencies and reduced costs generate increased margins and cash to reinvest, making it a ‘game-changer’.
- Improved decision making - simpler, more effective decision-making from factual data, increases the speed of change and drives a more agile business.
- Improved employee engagement - sharing insights and empowering employees to make a data-driven decision, stimulates collaboration and increases employee engagement across the organisation.
Harnessing the power of its data has a multitude of benefits for every business, especially when used to fuel operational standards and processes. Employees will be empowered to make better decisions, engaged in improving the delivery and production of products and services and will enable your business to compete in the ever-changing economic market.