Business Process Management and corporate governance
Business Process Management and corporate governance Linkedin Youtube Facebook Instagram A company is a group of people with a common
luis.chicaiza
2023-05-05
Predictive analytics in a business is usually thought of as having to do with external processes, such as its relationship with customers or the environment produced by competitors. On the other hand, it is also assumed that the optimization of a business is related to internal issues, such as processes or communication between employees. However, we want to show in this article that predictive analytics and business optimization go hand in hand.
First, let’s try to understand what predictive analytics is in a business and what are some of its benefits.
Predictive analytics uses statistical algorithms combined with internal and external data to forecast future trends, which enables businesses to optimize inventory, improve delivery times, increase sales and ultimately, reduce operational costs. When paired with artificial intelligence (AI), the insights gleaned from these advanced systems are the key to more accurate and timely forecasting going forward. (forbes.com)
As can be seen, the main benefit of this practice is to show the company perspectives of the future of the business so that management can make the best decisions and be prepared for the future that is revealed with analytical tools. Thus, a decision today can save the company from a crisis in the future or can fix a problem that will become a major obstacle.
For this to be possible, it is necessary that the data analysis technologies used have the most accurate and up-to-date information, because without it, predictions will be unsuccessful or confusing and will not serve for clear decisions. In a world as full of information as today’s, it is necessary to have big data solutions for this type of processes.
Data analytics uses Big Data and machine learning (ML) technologies to discover patterns from large volumes of data that would otherwise have gone unnoticed. These patterns allow organizations to make effective decisions and optimize business development processes that drive growth. (forbes.com)
Now, optimizing a business means continuing to develop the same process structure, but obtaining better results with the same actions; or having the same results, if they are good, but with less expense or effort. As we said, it is usually thought that optimization has to do with internal aspects: having the right employees, using the right IT systems, having a fast communication between processes, etc. And while this is true, there are also other elements that we will see below.
Business optimization is the process of improving the efficiency, productivity and performance of an organization. This can apply both to internal operations and external products. Big data and connective technology can be used to influence new approaches that drive business optimization — allowing businesses to achieve more. (insight.com)
So, what are those external aspects that predictive analytics technology can help optimize for overall business improvement? How should we understand a business in order to apply these technologies to optimize the organization?
First of all, we must know that a business is a dynamic entity that is changing internally according to the external stimuli it receives from its corporate environment. So, even though we have two different words, in reality the external and the internal are part of the same workflow that the organization must keep in mind for its behavior. So, for example, predicting customer behavior is not only a way to make decisions, but it is also a way to adapt processes to better respond to those changes, and that is business optimization.
All this is even clearer if there is an integration of all processes into a single integrated workflow that responds to triggers coming from customers. When a business has an organization by processes, its operation revolves around the requests that are made, and from there begin to move the actions that will lead to a specific end result. Thus, predicting the external environment means predicting how the business should behave internally, and that in itself is a form of optimization.
With the Dexon Business Process Management solution, businesses are not only intelligently organized to run by processes, but can implement all kinds of predictive solutions with data analytics to optimize the business. In addition, the solution makes the information always available in real time so that the analyses that are made really impact the business favorably.
With this strategy, our customers have seen how the decisions they make have more positive results not only in the present but also in the future, because they add to automation the predictive tools that allow a truly intelligent and adaptive behavior of the organization and all its activities.
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