By Rob Starr, Big4.com Content Manager
Like the title suggests, Going Big: Why Organizations Need to Focus on Operations Analytics. underlines the importance of the new movement toward operational analytics initiatives and how refocusing efforts to the backend helps to hasten competitive advantage.
Steve Jones, Capgemini’s Global Vice President – Big Data, says this latest report is the culmination of some of Capgemini’s other research the in Big Data analytics space and it clearly shows how serious organizations have become in adopting analytics in new areas.
“We’re really seeing an evolution and maturity in analytics,” he told Big4.com recently. “After people learned the technology and tools, they began to turn to the real problems analytics could solve.”
The results are a different perspective and a shift away from using analytics only for customer facing processes. In fact, the report notes that 70% of companies have prioritized these back office analytics initiatives to get a bigger advantage in their respective markets. Jones furthers he already sees where there will be growth areas emerging—namely the global supply/ manufacturing chain or what he terms “the back office in efficiencies.”
These are the areas that have historically been driven by very process orientated tools that work well but haven’t been able to usurp the decision making process. Jones points to a recent example and the benefits as this scenario changes.
“I was actually with one of our larger manufacturing clients last week where we looked at being
able to use analytics and automation in a procurement cycle to turn something that was thirty seven steps down to six.”
Predictive maintenance is another example where the application of data analytics can spell huge savings in planning and scheduling.
Tip of the Iceberg
“People often start at the tip of the iceberg with customer engagement,” Jones says. “While that continues to be important, we’re now seeing people turning around to look at the rest to drive efficiency and effectively undercut the competition.”
He uses the example of a specific industry to illustrate his point about the advantages of operational analytics:
“If an airline runs 5 % more efficiently because there are more efficient operations and crew scheduling and less outages and cancellations and can then offer tickets 3% cheaper, that translates into a huge gain.”
Jones stresses this new shift to operational analytics doesn’t take away from the importance of its customer facing counterpart.
“There’s nothing to suggest that people are spending less on customer analytics,” he says. “ It’s just that overall they’re spending more and more in analytics and the slice of the pie they’re spending on the operational side is now bigger because of the potential returns.”