Operational excellence is built on a foundation of continuous improvement. Businesses demonstrate operational excellence with the processes, structures, and tools to make the most use of their available resources. It’s important to remember, though, that operational excellence is a dynamic target. Meeting today’s objectives is fantastic, but all businesses should seek to exceed them in the future. Operational excellence is founded on this notion. AI and machine learning are transforming company processes in unprecedented ways.
Operational Excellence’s Advantages
Continuous improvement gives you a leg up on the competition in the long run. That advantage will persist as long as you improve faster than the competition. It would help if you had a big rush to pull ahead when every organization is making small, gradual advances — and that’s where technology can help. Machine learning and artificial intelligence (AI) can automate activities and reduce time spent on operational efficiencies. In the same way, the assembly line revolutionized the auto industry in 1913, AI and machine learning are set to revolutionize practically every industry a century later.
How Are AI & ML Used?
Every new technology has a hype cycle, but AI and machine learning have progressed past the early stages and are now being used in various industries. Here are a few instances of how businesses are already using intelligent solutions.
Mashreq Bank
Mashreq Bank has launched a platform for digital labor management. It is subject to stringent controls as one of the UAE’s top financial institutions. Customer assistance can now be automated thanks to their new digital workforce. It boosts productivity by lowering the time employees spend answering common queries. The program connects to other platforms and responds to questions without human intervention. Mashreq Neo is a digital branch. It allows the company to grow its delivery-on-demand services while keeping prices low. AI and machine learning shine in the field of automation.
Otto
Otto, a German retailer, discovered another way to use AI and machine learning in the retail industry. Amazon, the world’s largest e-commerce company, has put a strong emphasis on automating consumer interactions. On the other hand, Otto has concentrated on predictive analytics and lowering return rates. Otto examined client behavior using a CERN-developed application. Customers dread receiving many packages, the company discovered. Return rates are higher when shipping periods are extended.
Customers are more likely to return a package if it takes longer than two days to arrive. Otto countered the problem by implementing a software program that monitors consumer behavior. It makes predictions about purchasing behavior based on such data. The software then orders things expected to sell in the next 30 days. The software has a success rate of 90%. Otto can deliver customer orders more quickly due to automating this purchasing. It also cuts down on time to decide what to get and when to order it.
Industry Of Oil And Gas
The rapid reduction in prices in 2014 presented a substantial challenge to the whole oil and gas industry. This industry has experienced negative spending for two years in a row for the first time in more than a century. That’s a lot of money to throw away with nothing to show for it. Both downstream and upstream operators faced the challenge of functioning in a digital world to make up ground and turn profitability around. The availability of a large amount of data analytics was the key factor in the industry’s turnaround.
For decades, the oil and gas industry has been at the forefront of operational efficiency. Faced with this new difficulty, it began implementing intelligent technology right away. The industry discovered a focus by extracting valuable insights from the terabytes of data analytics accessible. The key to future success was profitability management. An important component was improving performance and compliance at the wellhead and throughout the supply chain. According to McKinsey, the practical application of intelligent technology might cut capital expenditures by 20%. Much of the savings comes from automating maintenance and disaster response when unforeseen downtime occurs.
The Purposes Of Technology
These three firms have identified three areas where AI and machine learning can help improve operational efficiency:
- Robotic process management for 24 hours a day, seven days a week client support
- Automated ordering based on previous purchasing patterns decreases the time it takes to make a choice to near zero
- Improved supply chain management resulted in lower capital expenditure.
Conclusion
The technology needed to improve operating efficiency is currently available. The challenge is identifying internal areas that can benefit and implementing the appropriate solution. Chatbots are a well-known and increasingly popular solution for customer assistance. Customers enjoy chatbots; thus, this is an area where companies can swiftly implement intelligent technology to increase efficiency.
Another area where AI and machine learning can be highly beneficial is supply chains. With each passing day, supply chain management becomes more granular. Some industries (notably agriculture and food) are under pressure to make their supply chains more transparent. AI can quickly examine large amounts of data analytics to spot potential issues. The data analytics is already in the hands of businesses. The next stage is to make operational decisions based on the facts. Innovative technology can be highly beneficial by allowing for real-time decision-making.
Contact ONPASSIVE team today to know more about AI and machine learning.
