Module 08 - Analytics & Optimization

Imagine you've just received your utilities bill, and your water usage has skyrocketed. You're baffled. You've mastered the art of the five-minute shower. You're the person who sternly reminds everyone to turn off the tap while brushing. You're running the dishwasher and doing laundry only once a week. So, what's going on?

You decide to play detective. You compare this bill to previous ones, noticing a sudden and significant increase. You observe your kids, discovering they've transformed your bathroom into a personal spa, enjoying hour-long showers with your state-of-the-art shower system. You catch them doing laundry for just a couple of items, and leaving the tap running while brushing their teeth.


Without comparing the current situation to the past, and without investigating the cause, you would've been left scratching your head, blaming the water company, or even considering a move to a rainforest for a free water supply.
The corporate world is not so different. Reporting and measurements might tell you what's happening, but not why it's happening. They're like the water bill - they show the result, but not the cause.


That's where analytics and optimization step in. They're the tools that help you understand why your 'water bill' is so high. They help you identify trends, spot anomalies, understand behaviors, and ultimately, take corrective actions.
So, the next time you're looking at a skyrocketing 'water bill' in your company, remember: a robust analytics and optimization program is your best bet to understand why your costs are increasing, and what you can do to bring them back down. And who knows, you might just catch the corporate equivalent of hour-long showers in the process!

As a management expert, I have seen time and time again how businesses are constantly inundated with data from a multitude of sources. From customer feedback to sales data, social media analytics to website traffic, the amount of data that businesses have access to can be overwhelming. However, in order to stay competitive and make informed decisions, it is essential that businesses are able to effectively analyze and make sense of this data.

This is where an analytics and optimization system comes in. By leveraging advanced technologies such as artificial intelligence, machine learning, and predictive analytics, businesses can turn raw data into actionable insights. With this system in place, businesses can identify patterns, trends, and outliers that would otherwise go unnoticed, allowing them to optimize their operations and make data-driven decisions.

Without an analytics and optimization system, businesses are essentially flying blind, unable to fully understand their performance and make the necessary changes to improve. However, with the right system in place, businesses can gain a deep understanding of their operations, from supply chain management to marketing and customer service. This empowers them to make informed decisions that drive growth and improve the bottom line.

In this age of data-driven decision-making, having an analytics and optimization system is no longer a luxury, but a necessity. The businesses that are able to effectively leverage data will be the ones that succeed in the long run. In the following sections, we'll take a closer look at what an analytics and optimization system is, how it works, and the benefits it can provide to businesses of all sizes.

The Top 10 Benefits Of Having An Analytics And Optimization Program:

  1. Understanding Root Causes: Just as in the water bill analogy, analytics and optimization help you dive deep into the issues, allowing you to understand why certain outcomes, like high costs, are happening.
  2. Identify Trends and Anomalies: These tools help in identifying patterns that might be contributing to the overall performance, whether they're positive trends to be leveraged or anomalies that need correction.
  3. Data-Driven Decision Making: With the amount of data available to businesses, it's essential to have a system that turns this raw data into actionable insights, ensuring decisions are made on solid ground.
  4. Optimization of Operations: By understanding the data, businesses can streamline operations, making them more efficient and cost-effective.
  5. Enhanced Customer Understanding: Analytics tools can provide valuable insights into customer behavior, allowing businesses to cater to their audience more effectively and improve marketing strategies.
  6. Increase in Revenue: With a better understanding of customers and optimized operations, businesses are likely to see an increase in their revenues.
  7. Proactive Problem Management: As illustrated in the aerospace client example, an analytics and optimization program can shift a team's approach from being reactive to proactive, anticipating and solving issues before they escalate.
  8. Saves Time and Money: Identifying areas of inefficiency early on helps businesses avoid wastage of resources, saving both time and money.
  9. Empowerment through Knowledge: Businesses gain a deep understanding of various facets of their operations, from supply chain management to marketing, empowering them to make informed decisions.
  10. Competitive Advantage: In today's data-driven world, businesses equipped with robust analytics and optimization systems are more likely to outperform their competitors who might still be making decisions based on intuition.

Use Case: A Large Aerospace Client

Situation: The client was dissatisfied with the performance of all the outsourced IT teams, in particular, the Service Desk, Deskside, IT Asset Management, and Major Incident & Problem Management teams. The poor service was generating a large number of escalations to the Senior Executives and delivering poor customer satisfaction scores.

Task: Implement an Analytics & Optimization process to 1 - validate the client perceptions. 2 - Better understand the root causes of the issues. 3 - Resolve the issues. 4 - Implement proactive service performance management systems to stay ahead of the issues.

Action: 1 - Obtained executive buy-in to build an analytics and optimization team. 2 - Developed the A&O guiding principles and process documentation. 3 - Connected with the reporting and measurements team to obtain the necessary reports and metrics to understand the service performance. 4 - Harvested the data to understand past performance and identify where adjustments need to be made. 5 - Worked with cross-functional teams to implement changes to address specific areas of concern. 6 - Implemented cadences with the teams and the client to demonstrate consistent improvement via MOR and Governance meetings.

Results: The client was able to see improvement in the 30-60-90 Service Improvement Plan window that was established. All deviations from the expected results were brought back under control and the team switched to more of a proactive team versus a reactionary team.

Conclusion:

A robust analytics and optimization system is indeed the backbone of any organization aiming to be data-driven. By anchoring to clear goals and deeply understanding your business imperatives, you pave the way for a system that not only streamlines processes but also enriches decision-making.

While the path to mastery might seem intricate initially, with dedication and tenacity, the transformation into a manager who harnesses data for strategic guidance is well within reach. But the question remains: Do you have the mettle to be a trailblazing, data-driven leader?

The journey with analytics and optimization doesn't culminate once a system is in place. It's an ongoing endeavor, perpetually refining and adapting. And this is where the principle of 'Continual Service Improvement' takes center stage. In our ensuing module, we will delve into how analytics feeds into this iterative process of constantly elevating service quality, ensuring that organizations don't just adapt but thrive in dynamic landscapes.

As analytics provides the insights, continual service improvement is the mechanism that translates these insights into tangible growth. Embark with us on this voyage, as we explore the nuances of sustained improvement in service delivery.