Operational efficiency

Operational efficiency describes an organization’s output compared to the costs – for resources like people, time, and equipment – to deliver that output. A highly efficient organization produces a lot of output at the lowest possible internal cost.

The precise metrics used to measure operational efficiency vary depending on the operation in consideration. For example, the operational efficiency metrics of an accounting department’s AP process will vary from those of a retail marketing department’s effort to drive in-store sales. The metric can be summarized as, the cost of the operation to achieve its goal – the revenue achieving the goal produces.

The best software to support operational efficiency depends on the operation in consideration and the objective of the operation.

• Process automation software may help achieve greater operational efficiency by streamlining processes (reducing costs) while increasing the resources available to focus on revenue-generating activities.

• Outsourced services like managed IT services, outsourced technology management, and outsourced 3D printing services may help organizations reduce the impact and cost of using technology while enabling them to accomplish more.

• Retail marketing solutions that enable real-time personalization of in-store digital ads can help marketers achieve higher sales.

These represent only a few examples. Ultimately, any application that accelerates task completion and enables a greater difference between revenue received and costs supports improved operational efficiency.