To optimise effectively, I need a whole range of high-precision tools. But how do I choose the right tool? Which areas are the most urgent? What should I leave out?
It all starts with data and (spoiler alert!) ends with it too. Data is THE basis for any optimisation, and yet all too often I come across either an inadequate data foundation or a lack of tools to quickly highlight various aspects of business operations.
When I was reading 'The Hobbit' with my son the other day, Smaug reminded me of many companies. Just as the dragon cannot make use of his legendary treasure, valuable data on customer behaviour and business processes lies dormant.
The first question that needs answering is: Are your business objectives backed up by figures?
By this I do not mean a turnover figure at the end of the year, but targets such as ‘reducing system-dependent process costs by 15 per cent’.
To achieve this, you need detailed information about your cost structure and customers. The customer’s perspective is, in any case, the most promising:
- Do you know your ‘cost to serve’ for all customer segments?
- Which customers are the most valuable? Which are the most expensive to serve?
- How are costs broken down along the value chain?
Do you have the figures to hand? Would they stand up to the heretical question ‘why’? This is where you can immediately tell whether your business is sufficiently digital. How? Every step in a process leaves a trace in an IT system, enabling you to evaluate your processes effectively and derive courses of action from them.
If you don’t have all the answers, it’s not the end of the world! The most important step has been taken: you’ve asked the questions. After all, a data foundation can usually be built up quite quickly. I’m not calling on you to turn into Smaug and go on a data-gathering rampage. Data storage and processing are only useful if they’re targeted. Just as with key performance indicators and reports.
Last but not least: Without data, you cannot showcase and celebrate your successes in process optimisation or digitalisation. Fortunately, failures are brought to light in the same way. And that’s a good thing! How else would you ensure that things go better next time?