More than ever, supply chain functional or line of business teams have been frustrated by their increasing needs for broader and more-timely business intelligence (BI). The reasons are many and in increasing cases, very valid. But more than ever, teams should now be turning their attention towards leveraging processes and technology anchored in prescriptive analytics.Read More
This blog post concludes our fifth post in our series on algorithms, mathematical optimization and business. Here, we’ll tie together how algorithms and mathematical optimization can both be leveraged together to generate unforeseen value into businesses.
(In case you missed them, here are parts one through four: "What is an Algorithm," "Defining Mathematical Optimization," "Algorithmic Business as the New 'It' Term in Business," and "The Importance of Mathematical Optimization in Modern Business.")Read More
In part four of our 5-part series on mathematical optimization, algorithms and business, we discuss the applicability of mathematical optimization in the business world and its ever-increasing importance. (Click here if you missed part three, Gartner's validation of algorithmic business as the new "it" word.)
It makes sense to incorporate expansion as part of your business model. Without continuous expansion, a business will likely stagnate and implode over time. A business that does not expand — rather, it maintains a steady rate of return — will be overtaken by things like inflation or other modes of economic flux. There's a real momentum to business, and should that be stilted, the push required to "get the ball rolling" again is often costlier than simply abandoning the failed venture. Naturally, any means of ensuring expansion will be sought.Read More
The key to increasing profitability is to identify which processes in your operations are or may become bottlenecks in the flow of work. Bottlenecks in business are the points where potential changes can have the most dramatic impact on the bottom line. While non-bottlenecks are important to consider from a cost accumulation standpoint, the majority of a manager’s focus should remain on the bottlenecks.Read More
First things first: what is a decision support system (also referred to as a DSS)? In short, it's a computer solution using statistical data to help managers and operation planners overcome strategic deficiencies in order to implement streamlined, efficient solutions. DSS systems can be entirely optimized via computer, entirely human-powered or a hybrid of both.Read More
Gartner estimates that the majority of all Business Intelligence (BI) projects fail to meet their desired goals. In today’s data centric world, this is terrifying the majority of businesses. Ask any executive if they think BI is important, and nearly all will agree it is. However, most businesses still fail to unlock the potential gains from the insights in their information, even after investing loads of resources into BI solutions.
Terrified is the correct reaction to this, as the deciding factor between successful companies and ones that fail in the next several decades will, to a large degree, be determined by their ability to utilize analytics to optimize their business flows. Companies unable to do this simply won't be able to compete with the ones who are.Read More
The balanced scorecard has been around for well over a decade, and it undoubtedly has brought value to companies by establishing a holistic approach to defining and setting targets in a more unified way. Nevertheless, it has suffered from the same mishaps that have afflicted almost every investment in business intelligence (BI): even though it uses leading indicators, it's not suited to predict business outcomes and therefore can be misleading as a guide to managing corporate performance.Read More
Long-range planning—the process by which companies determine the best strategy for succeeding in the market and moving forward towards strategic objectives. Used to optimal efficiency, a company implementing long-range planning will see assets allocated more efficiently, develop projects with a superior market impact, and make ideal investments of finances, personnel, and other resources for long-term prosperity. Compared with the dated sequential planning process, long-range planning positions businesses better for achieving long-term goals, eschewing moment-to-moment reactive revisions and thus avoiding the natural pitfalls of the sequential approach.Read More