With business-focused technologies on the rise, it’s becoming more important for organizations to learn how to use their data wisely. It’s a given that one should protect and secure their data, but it’s a completely different story when you’re analyzing information from your operational processes and using it to benefit your business. Back when big data was relatively new, businesses used to focus on customer experience but the trend seems to be shifting towards company operational performance. But what good does it do to a business? Let’s go ahead and take a look at what the benefits of operational analytics are.
Benefits of Operational Analytics
Most businesses today have the goal of reducing costs. With the help of operational analytics, you can identify areas that need streamlining, helping you to save more money, be more efficient, thus resulting in better profits. A whitepaper by Capgemini found that improvement in operations using data can help raise profits up to $117 billion worldwide yearly. That’s a steep increase compared to customer analytics which only drives about $38 billion in profits. The improvement in your bottom line means you are able to scale your business, no matter what size it may be.
2. Better decision making
Instead of relying on high-end consultancy firms to make big decisions for your organization, why not let the data do all the talking for you? Most companies would prefer to do it this way but if you’re a smart businessperson, you know that operational analytics is just as good of an option, if not more cost-effective. Data comes through faster allowing you to make the most important businesses decisions quickly. With your business acting on problems quickly, your bottom line doesn’t suffer from inefficiencies.
3. Competitive advantage
With the help of cognitive computing, companies are able to understand what all their data means and carry out more efficient processes. This gives you a better advantage among your competitors. While they are focused on analyzing customer data, you’re here looking at operational data so you can save money and reinvest it in more profitable pursuits.
If you’re not on it yet, now is the time do so otherwise you’ll get left behind. In one survey by Capgemini Consulting, they found that 70% companies have started focusing on operation processes instead of consumer processes.
4. Customer satisfaction
Although the point above sounds completely counterintuitive, operational analysis can actually help increase customer satisfaction. Sometimes, it takes weeks or even months before an organization can figure out exactly what is causing the drop in customer satisfaction. There’s simply too many factors to consider. With operational analytics, you can get to the root cause of a performance issue and fix it right away.
5. Streamlining data
Place all your security, business, and IT data all in one place where you can manage it with efficiency and easily spot system problems in real-time. Not to mention, you can easily create backup and recovery for all data to ensure its safety despite natural disasters. And with the ability to share it with your employees, you can gain relevant insights from them too. At this point, they are not merely employees, but also stakeholders who are empowered to help the company succeed.
6. Holistic operations
Operational analytics allows you to get a holistic view of your data, where you discover certain networks that are actually interrelated with each other. When you realize that certain types of data are dependent on a specific environment, you are able to perform a more efficient root-cause analysis should a problem arise later on.
7. Better employee engagement
Having access to data insights encourages employees to be more engaged. It promotes collaboration within the group, and this time, it’s not just the data that’s doing the talking but the whole organization itself working together for the success of the business.
Since operational analytics is a relatively new concept in the business world, its benefits may not always be felt immediately. This is caused by a number of reasons such as siloed data sets, difficulties accessing third-party data, and lack of strong mandate from organizations heads.
This doesn’t mean you should completely abandon the idea. If anything it’s an opportunity to jump on something that few businesses have just started doing. Don’t be one of the many organizations that fail to take advantage of their operational data. Use yours and enjoy the advantages it provides.
How has operational analytics helped your business? Share your thoughts in the comments below.
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