Fitting analytics into a Kaizen framework

Although there are a number of strategies businesses can use to improve their financial positions, perhaps the one consistent method is the improvement of productivity. An active company that is constantly producing products and maintaining services will more times than not end up being successful.

So how can businesses maximize their productivity? According to a new survey commissioned by SAS, a combination of Kaizen and data analytics can be beneficial to achieving that goal. The research found that 50 percent of businesses had been able to improve their financial performance when they began using analytical tools.

Perhaps even more critical was the impact of data and analytics on employees. In data-driven businesses, employees were found to be more proactive and creative when they generated a flow of new business concepts and ideas. Managers were able to use analytics to test those ideas and deliver feedback to employees in order to facilitate collaboration and further improve their innovative theories.

Jim Bander, national manager of decision sciences in the risk management department of Toyota Financial Services, notes that data-driven companies tend to be wiser than those that don't utilize this source of information. The best results come after businesses have successfully fit analytics into the essence of their corporate culture.

“And that isn't simply a matter of data but of fitting analytics into your corporate culture,” Bander added. “For example, Toyota has a culture of continuous improvement and respect for people, including consensus building. My job is to fit analytics and data-driven decision making into that Kaizen framework.”

Universal data

Moreover, data is a universal benefit, as all companies can take advantage of detailed analytics. The issue is simply a matter of discovering how they can integrate data into their business culture.

“An organization with a different corporate culture – whether a mass-production manufacturer or a Silicon Valley startup or a government agency – would find a very different way to integrate analytics into its decision-making processes,” Bander told eWeek.

Kaizen leaders should ask themselves: What processes need to be improved? Then, ask which data points could be useful in determining how to improve these operations. Once businesses put these metrics in place, they will be better able to take advantage of them to bolster productivity.