Understanding Predictive Analytics and Predictive Understanding
The term predictive analytics refers to the analysis of existing data to create forecasts that when properly applied, help avoid future problems. While kaizen helps spot problems live on the manufacturing floor, using predictive understanding methods provides an opportunity to:
Business forecasts only do so much. They cannot tell you the exact times of day you’ll likely serve the most customers. They merely let you know the average number of customers per day you’ll serve and an average of how frequently. A simulation, however, can replicate the real-world event in a computer model or, in some cases, a live-action role-play.
Field service management has always been challenging, as you rarely know exactly what’s happening when your personnel are on the job and interacting with customers. This can introduce a great deal of variability in service levels, which doesn’t always lead to great customer experience. From system inputs to scheduling, see how the structure of Six Sigma or lean manufacturing can be leveraged to provide efficiencies and improve service for field staff.
You’ve spent weeks or perhaps even months going through the strategic planning process, often burning through hundreds of hours of staff time to craft ideal strategies. Yet, within only a few months you find that plans are beginning to morph and slowly shift direction away from your hard-won strategies. Without clear ownership of the project, executive buy-in and consistent communication, it’s difficult to drive for successful implementation of your strategies.
Your suppliers comprise a key component to your success. You can’t run a product-driven business or a service-oriented business without positive vendor relationships. That’s why vendor management really means relationship management. It can present challenges, but effective management results in a stronger business.
While problems may seem unavoidable, you can avoid pitfalls and ensure the success of your large capital install projects. Your current projects can provide a learning experience if you identify the pitfall or failure it’s experiencing, then re-focus to get it back on track. You can then start your next project out right the first time. Read on to find out how.
Innovation may be the latest and hottest buzz word, but its roots are by no means new. Innovation is synonymous with Human and all you must do is look around to see the far-reaching effects of human ingenuity and innovation. From things as simple as the wheel to the high-tech gadgets that both control and assist our lives. Knowing where the innovative spirit comes from and how to extract it, could very well be the most powerful and influential skill you could develop as a leader.
So why is innovation so “hard”? Why do companies struggle to break the “glass ceiling” or find their way “out of the box”? Turns out, there is A LOT to it. Our behavioral patterns are determined by a quagmire of personal experience, driven by societal and cultural norms, mixed with the fundamental nature of humans that both propel us and control us. The combinations are infinite, and the outcomes are incredibly broad on many spectrums. The forces of good and evil, the balance of control and freedom, the perception of time gained and time lost, our innate willingness to help others, and our incredibly vast interests, abilities, and passions that are as unique as our DNA will continue to drive destruction and creation as long as humans walk the earth.
So, I’ll ask you again, why do we struggle with Innovation if it’s a part of who we are? My most vague, yet most fundamentally accurate answer is “balance.”. Balance keeps us both where we are and where we want to be. I believe we have the power to decide which side of balance we want to be on, both as individuals and as businesses. To invoke change, we must upset the balance that exists, we must make waves in the status-quo, ignite a fire in the hearts and minds of humans and it must be constant, relentless, and void of direction.
This is by no means, easy, but a conscious understanding of what “levers” to pull is certainly helpful. Here are five of some of the most fundamental and obvious tendencies of humans that we need to understand, accept, and account for when driving towards an innovative culture.
1. The path of least resistance – We humans tend to take the easy way out. We take the shortest or quickest way home, we constantly seek better, easier, and more efficient ways to work, cook, lose weight, and just about anything else we get into. You could see how this would be an asset in the struggle to innovate.
2. Creatures of habit – Counter to our need to take the path of least resistance, we’re also wired to settle into the habits that have been created for us or that we have created for ourselves. This tends to hurt our drive for innovation.
3. Action and Reaction – The fundamental basis for how humans learn can be explained with action and reaction. Our behavior and actions are altered and modified from the moment we are born. Presented with a favorable reaction, we tend to perpetuate our actions. To the contrary, we tend to reduce or hide the actions that aren’t well received from our reactive forces.
4. Fear itself– Another side effect of action and reaction is fear. If the reactions are almost always negative or have a negative social component, fear keeps us from acting. Fear is all around us in one form or another. It manipulates us into buying products and services, it suppresses our opinions, it forces us to do things we hate for a lifetime, and it keeps us from creating the lives we are meant to live. Respecting fear is necessary, but suppressing it at the right time can have powerful ramifications.
5. Narcissism lives in all of us – We all have it, some more than others, but make no mistake. “Leaders” in any organization are often the biggest offenders of letting their narcissism run wild. A false sense of power tends to amplify narcissism without people even realizing the damage they are doing to their culture. As with any of these traits, anyone interested in harnessing the power of humans must first recognize this in themselves.
We could argue that law enforcement, is reactive in nature because of the ingenuity that lives within humans who don’t conform, who don’t live in fear of consequences, who seek a different path, who seek an easier path, and who have a keen sense of action and reaction within the system in which they live. The traits, talents, perceptions and personal experience of leading-edge criminals is arguably the very thing that’s missing from the people that live within your organization. No, I’m not advocating you hire criminals, but I am almost certain that those same attributes are alive and well inside all of us. Knowing what they are, how to disrupt or incite them, and who to apply it too, is arguably the most powerful tool of any leader. But in the face of innovation, does “leader” carry the same definition?
The traditional “leader” is best identified by their ability to get people to do what needs to be done. An Innovation leader, however, must be able to get people to do things that haven’t been done before. This is a subtle but important distinction since the combinations for success are far less obvious when it comes to innovation. Being able to distinguish one’s self as a leader in innovation is a tall order and one that brings about a great deal of self-reflection, faith, and understanding to both embrace and oppose the tendencies of nature.
Reverse logistics occurs after the sale. It includes an array of potential activities that recapture value and extend the lifecycle of the item. For example, consumers in many states participate in bottle return of glass soda pop bottles. Returning the bottles nets them a few cents and enables the manufacturer to cut costs by recycling the bottles. That small discount adds up to customer loyalty.
Using cloud solutions opens your workforce to using virtually any Internet-connected device to access and process data. That means everyone gets to use the computing tool with which they feel most comfortable whether it’s the office’s iPads or a Windows computer. Another benefit is your office can purchase exactly the number of licenses it requires, then add to it as it hires office staff.
Organizations across the world are finding themselves with increasingly complex supply chain processes to manage. While in the past most commercial enterprises were local, modern enterprises cannot survive in this way. Many modern businesses are finding themselves having to develop new technologies to manage these strategies — one of which may become the blockchain.
The Supply Chain is Broken
Current supply chains are still using management and logistics processes that were developed a long time ago. These are very streamlined processes that involve a small number of components. But supply chains are operating internationally now; even organizations that only deal in local trade are often sourcing their materials from another country.
This introduces many logistical concerns. Supplies and assets must now change hands a multitude of times, shifting responsibility from one organization to the other. Supplies need to be able to be tracked by multiple vendors and businesses, which can be difficult when they are traveling such tremendous distances. Blockchain technology may be able to help.
How the Blockchain Can Revolutionize the Supply Industry
Blockchains provide a completely transparent and consolidated transaction sheet, which can comprise a multitude of different transactions and verifies each transaction with all other users of the system. In the blockchain, a transaction can be logged and then immediately propagated throughout the system, carrying with it information about the transaction and verifying that the transaction did take place.
As a consolidated but decentralized system, blockchains provide for superior security as they cannot be controlled by any one individual. Data cannot be lost because this data is held by anyone who uses the blockchain, and consequently suppliers don’t need to worry about issues such as securing and managing their own transactional data.
All transactions can be traced easily back to the original source through blockchain, and each entity in a blockchain can be tracked through multiple transactions. This has opened the door for companies such as diamond companies to track their individual assets throughout the entire supply chain, from initial mining to customer purchasing. Not only does this heighten security and streamline logistics, but it also provides vital data throughout the customer purchase process.
The blockchain is a relatively new and disruptive technology, but it has been around long enough that many companies are now seeing its true value within their organization. Through the blockchain, supply chains can enter into a new generation of scalable, consolidated, and decentralized solutions.
Companies will be able to track extremely complex supply chain management protocols with complete transparency and organizations will be able to work together with transparent and easy to access data. All of this will reduce supply chain overhead and costs and make it easier for companies to thrive. For more information about business intelligence and data analytics, contact the experts at Starr & Associates.