Operational Analytics: Putting Analytics to Work in Operational Systems
By James Taylor
Analytics, and the use of analytics to
make organizations more effective, have become an increasingly hot topic
over recent years. With books like Super Crunchers, Competing on
Analytics and Analytics at Work promoting the approach, analytics have
begun to move into the mainstream. There are many ways to use analytics
to improve an organization’s effectiveness and efficiency, and many
different ways to apply analytics. This report is about how to use
analytics to improve day-to-day business operations.
apply analytics to business operations, especially when you apply
analytics to operational systems, not every analytic technique or
technology is appropriate. Improving the decisions in operational
systems is the primary objective of applying analytics in those systems.
This requires a focus on executable, operational analytics.
applying operational analytics are focused primarily on business
process improvement and competitive position, though customer centricity
also drives adoption. With a focus on decisions that involve
identifying opportunity or assessing risk, customer decisions dominate
the operational analytics landscape. In this study, case examples tackle
scoring the value of prospective customers to improve targeting,
improving customer satisfaction, effectively developing prospects,
targeting direct-to-consumer marketing, and optimal scheduling and
resource usage – all classic operational analytics problems.
variety of technologies and approaches can be used to deliver
operational analytics, and these can be broken down into different ways
to build operational analytics, deploy them and evolve them over time.
Whether building analytic models manually or automatically, no matter
how those models are deployed into operations and whether those models
adapt automatically or are updated manually, the value is clear – better
decisions, more accurate decisions and thus more effective business
The technology required for operational analytics is
well established and proven. Yet challenges remain. To be successful in
operational analytics, organizations must be clear about the decisions
they are improving, must start small and expand systematically, and must
invest in the management of organizational change. A focus on key
performance indicators or metrics and how analytics impact them as well
as a vision that is matched with a systematic plan are likewise
Organizations can receive tremendous value from
operational analytics and the success stories are becoming more numerous
and more compelling. For most, however, there is real work to do if
they are to successfully adopt this exciting set of technologies and
approaches to changing their business for the better.
Read the entire study.