Efficiency and Effectiveness Improvement in the Age of “Big Data”
2 min read
Digital analytics, or the systematic analysis of the data generated within organizations, is creating opportunities for significant change in how we manage processes and people. The benefits are evident in financial services, insurance, health care, government and education but also in many service segments of large industrial enterprises.
In today’s corporations, approximately 95% of the information that is retained is in a digital format – in stark contrast to the 25% that was retained in 2000. Employees in every organization generate digital records while performing their day-to-day activities, from running sales and operations to communicating via texts, emails, meetings, cellular and landline telephone calls. The ubiquity of digital information allows managements to have access to very large amounts of data of many different kinds.
Using digital analytics, an expert data miner can visualize the processes and inefficiencies with minimal human interaction. While large and mid-sized companies will be the largest benefactors of these digital analytic advances, small companies can benefit as well. Digital analytics can be divided into two areas of focus as it relates to efficiency and effectiveness: process analytics and people analytics. Process analytics enables an enterprise to map processes, identify potential areas of inefficiency, remediate these inefficiencies, and implement real time tracking and measurement. The focus of process analytics is work products, services and/or tasks. People analytics enables an enterprise to document the work of individuals or groups performing their day- to-day activities. People leave extensive digital footprints which can be analysed to highlight dimensions of performance, expertise, and even deficiency in organizations. Combining process analytics and people analytics provides opportunities to identify and achieve significant gains in efficiency and effectiveness throughout an organization.
The firms that have pioneered these approaches are benefitting from important gains: financial impact, expertise management, client servicing, risk mitigation, and operational improvement. There is a first mover advantage in capturing these benefits. The gains are revolutionary, not evolutionary.
To discuss how you can better leverage your company’s data to drive the efficiency and effectiveness of your organization, contact:
Pierre Buhler (pierre@ckmadvisors.com)
Curtis Morikawa (curtis@ckmadvisors.com)