Operations Analytics

Operational Analytics
Operational analytics is the process of using data analysis and business

intelligence to improve efficiency and streamline everyday operations in real
time.
A subset of business analytics, operational analytics is supported by data mining,

artificial intelligence, and machine learning. It requires a robust team of business
and data analysts. And it also requires the right tools (think Tableau and Looker).
As such, operational analytics is much better suited to large organizations than

small businesses—at least for now.
Operational analytics can have a profoundly positive impact on the entire

enterprise.
What Are the Benefits of Operational Analytics?
There is a reason leading organizations are increasingly investing in operational

analytics. It can have a profoundly positive impact on the entire enterprise.
Here are three of the reasons why businesses that prioritize operational
analytics do not look back.
1.Faster Decision-Making
Quite simply, businesses that can analyze and react to customer data in real time
are able to make much faster decisions.
Traditionally, businesses would make adjustments to their operations based on

a quarterly or annual data review. In this reactive manner, they might miss out
on serious revenue or glaring issues. They’d only become aware after the fact.
On the other hand, companies that embrace an operational analytics platform

can make adjustments to processes and workflows in real time. Or at least close
to it. As such, they are in a better position to increase profitability and reduce
waste. They can also detect problems and inefficiencies quickly and respond to
them rapidly.
In fact, one recent study found that improving operations can result in a $117
billion increase in profitability for global organizations.
2. Enhanced Customer Experiences
Businesses that react to situations in real time are able to provide better
customer experiences. It’s that simple.
For example, imagine an e-commerce company runs operational analytics. After

that, they find that a significant percentage of its users are adding items to their
carts but not completing transactions. Armed with that information, they then
investigate the issue. It quickly becomes apparent that their website is buggy
and checking out is a nuisance.
After identifying what’s wrong and fixing it, the company improves the customer
experience and drives more online sales.
3. Increased Productivity
Thanks to operational analytics, businesses can see the inefficiencies that exist
in their workflows. Accordingly, they can then change their processes to
streamline operations.
For example, a company might run analytics and realize that the process for
approving a purchase order is too cumbersome. In this case, it requires too many
signatures from too many people who are moving around constantly.
This data might encourage them to rethink the process entirely. They may either
decide to reduce the number of signatures required to approve a PO. Or they
could opt to move to an online system that eliminates the need for having to
track anyone down in person.
A Real-Life Example of Operational Analytics in Action
Let’s say you want to install an in-home, cloud-based smart security system. You
order the product online and it arrives a few days later. After you pop open the
box and glance over the instructions, you plug in the device.
But, for some unknown reason, you’re unable to connect it to your local WiFi
network. The device is trying to connect. But the signal keeps cutting out.
An enterprise with a robust operational analytics platform might be able to

detect that you’re trying to connect for the first time. Then an alert would
appear in central management’s operational analytics platform indicating a new
device is being activated. The platform would also indicate that the device
connection isn’t steady. Instead, it’s turning on and off.
Under the old way of doing things, companies would expect customers to call a
support line. At this point, the already frustrated customer would then have to
wait on the phone. Finally, if and when a live agent picked up, they would
troubleshoot the issue over the phone. Or, if that didn’t work, they’d schedule
an in-person technician appointment.
Customers tend not to like either of these approaches. What’s more, they’re
wasteful to businesses, too.
Operational Analytics Saves the Day
Now, here’s how operational analytics can truly enhance customer experiences.
Rather than taking this reactive legacy approach, the security company could
proactively reach out to the customer. They could provide personalized
customer service by sending a text message to the customer asking if they need
help. Or, better yet, a real person could call the customer and walk them through
the setup process.
This is a big deal. A recent study indicated that 83% of U.S. consumers prefer
working with a real customer service person to resolve issues. At the same time,
another study showed that customers who experience personalized customer
service are 44% more likely to return.
Think of the transformative change this proactive customer service approach

can have on customer experiences—and on profits.

Operations Analytics

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Operational Analytics

Operational analytics is the process of using data analysis and business

A subset of business analytics, operational analytics is supported by data mining,

As such, operational analytics is much better suited to large organizations than

Operational analytics can have a profoundly positive impact on the entire

What Are the Benefits of Operational Analytics?

There is a reason leading organizations are increasingly investing in operational

Traditionally, businesses would make adjustments to their operations based on

On the other hand, companies that embrace an operational analytics platform

2. Enhanced Customer Experiences

For example, imagine an e-commerce company runs operational analytics. After

A Real-Life Example of Operational Analytics in Action

An enterprise with a robust operational analytics platform might be able to

Operational Analytics Saves the Day

Think of the transformative change this proactive customer service approach

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