Operational Efficiency and Digital Technology

Operational Efficiency or Operational Efficiency means making the most of each available resource to achieve the best possible result in terms of production and costs, with the least possible waste. It is the optimization of production or service processes, so that it directly impacts the results; because the raison d’être of every company is to offer its customers the best products and services at the lowest possible cost, so the company must seek operational efficiency in each of its processes.

Therefore, operational efficiency must be a primary objective in any organization to be sustainable in the medium or long term. To achieve this, the company’s human teams and departments must be increasingly agile and efficient, always keeping an eye on what is fundamental for the business and thus avoid the dispersion of their efforts.

It is important to emphasize here that meeting the goals established by the company does not necessarily mean that it is being efficient, so you do not have to settle or feel satisfied with the simple fulfillment of the goals, you have to permanently review the processes to ensure that they are detect weak points that can be improved.

As examples, in the production and operations area, you have to keep an eye on the process and constantly monitor its performance, in the management of inventories, in the management of suppliers, in the efficiency of machinery, etc. In the administrative area, we must not lose sight of the functional structure, the management of information and communications – an area where it is key to have tools that facilitate collaboration and control – the quality of processes, products and services, management indicators, billing and account monitoring, etc.

Likewise, in each area of ​​the company, attention must be paid to the key points, regardless of whether the established objectives have been met, it is a constant task to seek each improvement that can be made to the different activities, to have metrics and indicators, to control , follow up, to maintain operational efficiency.

In addition to the company’s departments, it is essential to be vigilant of the environment. For a product or service to be and remain competitive, it must adapt to changes in the environment. This implies the economic, political and social aspects as is traditionally done, together with the analysis of the competition; However, what has become increasingly important in this environment – and now more than ever – are new technologies.

Today, to survive, it is imperative that organizations update themselves in terms of the implementation of digital tools and platforms. In this sense, projects of change, digitization and innovation are increasingly frequent in different economic sectors, since they are the answer to the need to adapt to the new digital reality.

The integration of digital technology in all areas of the company, including customers and suppliers, directly impacts its operational efficiency, since it allows us to have a clear and complete vision of the processes, to be able to pay due attention to what It is key to the operation of the company and to analyze in detail the different activities, allowing to detect those in which it is possible to reduce waste and improve performance and results, which means greater productivity. Digital technology is then today a necessity to achieve and maintain operational efficiency in companies and organizations, it allows us to be permanently vigilant of the processes, to find the points to improve, and thus make better use of each of the resources to achieve the best result for our clients, and by extension, for our business.