When looking at ways to reduce expenses, one of the first categories businesses focus on is operational expenses. Operational expenses are incurred in carrying out an organization’s activities . These expenses can add up quickly and come in a variety of shapes and sizes . While some of the most common expenses are in the form of office rent, insurance and payroll , others are not so easily enumerated.
Some of the highest operational expenses businesses incur are the result of complicated, manual processes that lead to numerous inefficiencies throughout the organization. Complicated, time-consuming processes weigh heavily on your staff, bogging them down with daily tasks and taking their time away from strategic projects that lead to business growth. Over time, these complicated and often highly manual processes can add up, hindering your efficiency, impacting your bottom line, and impeding on your profits.
The First Step: Using Business Intelligence to Identify Inefficiencies
In order to reduce expenses associated with inefficient and complicated processes, you first need to identify them. Business intelligence tools can help you identify the processes contributing to business efficiency and, with the implementation of KPIs, you can monitor and measure your performance as related to the efficiency goals you set. This enables your organization to become leaner and better able to compete in the global market.
Using business intelligence, you can answer the following questions about your business and its operational costs:
- How much are our current processes costing the business?
- What are the costs involved in fulfilling customer orders? Processing payroll? Managing inventory?
- How are inefficient processes impacting employee costs (salaries)?
- Which processes are associated with the high expenses impacting the bottom line? What is the effect on the business?
Business intelligence provides managers and executives with the information they need to begin the process of reducing the operational costs associated with complicated and inefficient processes. With business intelligence tools, companies can monitor their progress throughout the year and continually work to meet predetermined business goals. Discover how you can use business intelligence tools to regain profits lost due to inefficient processes.
