Businesses leverage operational analytics to take better data-driven decisions

Disruptive technologies, cloud computing and IoT devices continue to evolve and proliferate. As a result, businesses are generating and collecting more data than ever before. However, the challenge here is not gathering the data, but using it in the right way. Businesses are leveraging futuristic analytics features to better understand the data. One such solution is operational analytics.

Data is exponentially increasing every movement. Every time a customer interacts with a website or device, an unimaginable amount of data is generated. Meanwhile, when employees use a company-issued tablet or device to do their jobs, they add more data to the company's data house. The data goes useless if it is not utilized properly. Henceforth, businesses are adopting operational analytics to increase workplace efficiency, driving competitive advantages, and delighting customers. Operational analytics is at the beginning of gaining ground in the business industry. A survey conducted by Capgemini Consulting on around 600 executives from the US, Europe and China suggests that over 70% of organizations now put more emphasis on operations than on consumer-focused processes for their analytics initiatives. However, only 39% of organizations in the survey said they have extensively integrated their operational analytics initiatives with their business processes and barely 29% of them have successfully achieved their desired objectives from their initiatives.

What is operational analytics?

Operational analytics is a more specific term for a type of business analytics which focuses on improving existing operations in real-time. The process of operational analytics uses various data mining, data analysis, business intelligence and data aggregation tools to get more transparent information for business planning. Operational analytics stand out from other analytic methods for its capability to gather information from various parts of the business system and process it in real-time to feed into instant decision-making for the business.

Operational analytics in business

Operational analytics lets you process information from various sources and answers questions like what action a business should take, Whom to talk to, what immediate plans should the company make, etc. Remarkably, the decisions taken through operational analytics are purely fact-based. This type of analytics could drive fully automated decisions or may be utilized as input for management decisions. Operational analytics is used across all industry verticals. Some of the front runners are listed below,

• Banks avail operational analytics to segment customers based on parameters like card usage and credit risk. This data helps banks provide customers with suitable products that come under the customers' personalized category.

• Operational analytics play a pivotal role in recognizing machines with issues. Manufacturing companies use technology to get pre alerts on machinery failures.

• Implementing operational analytics in the supply chain provides companies with well-structured dashboards that give a clear view on consumption, stock and supply situation. The dashboard contains critical information that can analyze and quickly agree with the supplier on a supplemental delivery.

• In the marketing sector, operational analytics gives an extra eye for marketers to view customers based on their shopping patterns. Companies can use the data to promote relevant products to their consumers.

Benefits of operational analytics

Adopting operational analytics in the business radar comes with a lot of benefits. It can have a profoundly positive impact on the entire enterprise.

Rapid decision-making

Businesses that embrace operational analytics enjoy the feature to take decisions in real-time based on customer data. Earlier, businesses were confined to take decision on annual, half-yearly or quarterly data. But today, companies can avail data in real-time, which leads to adjustments in processes and workflow. A recent study has concluded that improving operations can result in a US$117 billion increase in profitability for global organizations.

Enhanced customer experience

Operational analytics acts as a real-time troubleshooter for companies. For example, if an air travel company or a shopping site faces money transaction problems, operational analytics finds that the payment portal of the apps is corrupt. It notifies the employees and clears it as soon as possible.

Increased productivity

Businesses can now see the inefficiencies that exist in the workflow using operational analytics and streamline the operations based on the data. For example, if a company has a very long process to authorize something, the company can find the issue and totally distort it or convert it to online modes where the process is easy.

Operational analytics software

Operational analytics software helps businesses to deliver visibility and insight into data, streamlining events and business operations. Operational analytics provides organizations with the ability to make decisions and immediately act on these insights. Some of the top operational analytics software are,

• Alteryx- Alteryx empowers operations leaders and analysts to answer critical process or strategic investment questions in a repeatable way.

• Panorama Necto- Panorama Necto is a business intelligence solution that provides enterprises with new ways to collaborate and create unique contextual connections.

• Siemens Opcenter- Siemens Opcenter is a holistic Manufacturing Operations Management (MOM) solution that enables users to implement a strategy for the complete digitisation of manufacturing operations.