What Is Operational Analytics and Why It’s Critical for Business Success

With over 80,000 employees and 240,000 shifts, Disney World expends massive effort behind the scenes to create magical experiences for its millions of visitors each year. This wouldn’t be possible without the power of operational analytics.¹

Disney and all other major corporations use operational analytics to drive real-time effective decisions that optimize daily business operations for maximum efficiency. Analytics in operations combines multiple sources of real-time data to provide actionable insights that improve workflows and performance, from scheduling labor shifts to directing traffic flows to improving equipment efficiency.²

This article will explore data analytics in operations and how it optimizes daily business processes to boost efficiency and drive effective decision-making.

Operational analytics is a component of business analytics that focuses on the nitty-gritty of daily work. Business intelligence is an overarching field that covers long-term, big-picture thinking and strategies. Operational analytics, on the other hand, is centered on improving performance in the here and now.²

Traditional analytics draws on historical data to identify opportunities that can drive business strategy in the future—what markets you can expand into and what new products you can offer. Operational analytics uses real-time data to help with day-to-day decisions, such as how many employees you should schedule and how to reduce customer wait times today.²

Although there’s no doubt that taking a high-level overview is necessary for long-term success and sustainability, optimizing daily operations drives immediate improvement. Real-time data allows you to achieve operational excellence by giving you the insight you need to make the best decisions given your current conditions and limitations.³

You can use IT operations analytics tools to discover bottlenecks, find hidden patterns and see trends that you might otherwise not notice. With this information, you can gain a competitive advantage by reducing operational costs and improving efficiency in your processes. As the example from Disney shows, business leaders also use operational analytics to increase customer satisfaction by streamlining processes.³

Modern businesses collect vast amounts of data using multiple systems. Companies use many different operational systems, each of which collects its own data. Customer relationship management platforms have detailed information about customers and their interactions with brands. Enterprise resource planning systems collect data on supply chain logistics and critical financial information. The rise of Internet of Things (IoT) technology has created oceans of data from connected devices, sensors and equipment that give you insight into everything from equipment performance to customer usage patterns.⁴

Operational analytics platforms combine this data from multiple, disparate sources using artificial intelligence (AI) technology such as machine learning to make predictions about how you can most efficiently perform daily tasks. They use dashboards for real-time monitoring and make adjustments based on up-to-the-minute data. You don’t have to go into each system to collect data and dig for trends and connections. Instead, you can draw on all of your data sources to make decisions that will keep your customers happy and help you avoid problems.⁴

Every industry and business can benefit from IT operation analytics. It provides holistic insight into your operations that can increase your profits and improve the customer experience.

Today’s supply chains are behemoth operations that require coordination across industries and geopolitical boundaries. With integrated data, operational analytics can provide real-time visibility into your supply chain, so you can make improvements and corrections to reduce delivery times and expenses.

You can also improve customer service with operational analytics. If your customers are having problems using your digital products, your analytics platform can automatically send a how-to video or schedule a service call. If they’re having to wait in long lines, you can open new lanes or suggest alternative options.⁴

One of the most common use cases for operational analytics is workforce and production management. You can analyze data to discover optimal labor schedules and find bottlenecks in production. With this information, you can ensure you have the right amount of labor coverage and the fastest processes in place without sacrificing quality.

Operational analytics platforms integrate with your systems to draw on your existing data sources to give you a comprehensive overview of your daily processes. Tableau is a data visualization platform that lets you create specialized dashboards. You can take in complex information at a glance with visual displays such as heat maps, scatter plots and geospatial maps.⁵

Power BI is a business information platform by Microsoft that works well if you’re already settled into the Microsoft ecosystem. It’s a cost-effective option that uses advanced AI for data modeling and offers mobile access for insights on the go.⁵

Google Analytics is a good option for web-based businesses in areas such as marketing and e-commerce. It won’t provide insight into manufacturing equipment, but it can give you real-time insight into how your customers interact with your web page or application.⁵

Deriving real-time insights into your daily business operations is a powerful driver of success. However, operational analytics is a complex function of multiple data sources and models, so you may have significant challenges in implementing it effectively.⁶

Your platform will need to integrate with all of your data sources across systems to be able to deliver accurate predictions. If your data isn’t accessible, your system can’t include it in the predictive models it relies on.⁶

Another challenge is ensuring you have accurate and high-quality data. Your data-driven decisions will only be as good as your data. Redundant or outdated data will limit the usefulness of your operational analytics model.⁶

Another challenge can be training your staff to use your operational analytics platform effectively. They need to understand what the data means and what they need to do in response to specific situations. To reap the full benefits of operational analytics, you’ll need a structured plan for implementation that includes measures for overcoming these challenges.⁶

An Online Master of Science in Business Analytics from William & Mary can help you develop the skills to drive success in today’s complex global businesses. Our highly-ranked program is taught by experts in the field and provides networking opportunities with alumni who work at top corporations around the world. You’ll have the flexibility to earn an advanced degree entirely online in as few as 15 months. Contact one of our admissions outreach advisors today to get started.