Risk and reward: Top 10 tips on business optimisation
Risks are inevitable when forging a path to success. Fortunately, there are ways to minimise their occurrence – enter optimisation, the conduit between risk and reward logic.
As the word suggests, optimisation is the efficient use of choices, investments, resources, and disruption (i.e. new business models, digital technology, etc.) to increase the chances of success in high-risk environments.
How do we make use of optimisation to ensure our business’s success? IBM established that to optimise, one needs to understand its elements and how to leverage foundational notions that must be in place, such as business agility, for the business performance to be realistic, sustainable, and able to provide for continuous improvement.
Top 10 tips to improve business success
Here are 10 tips for business optimisation when viewed through the ‘risk-lens’:
Augment the business operational model at a rate, cost, quality and predictability consistent with strategic needs
Monitor real-time business events using new combinations of technology
Provide corrective actions or organisational change as an enabler for sustaining business outcomes
Enable operational dexterity to address agility and complexity gaps identified by executives
Optimise business performance based on well-defined points of agility
Holistically use digital and business operational change as an enabler
Achieve better business outcomes from data and processes in the business (machine learning applications can add substantial value for repetitive applications)
Real-time insight and monitoring to improve decision-making
Liberate business from the rigidity and fragility of existing applications that hard-code processes and operational regimes
Businesses always leave room for improvement in the hopes of exceeding their current performance. By applying optimisation practices to business processes, business owners and executives are liberated from the rigidity and fragility of their existing applications.
The common rationale in the industry is that systems and processes are solely designed to meet compliance and governance imperatives. This belief tends to overlook that the value proposition of these practices ultimately lies in their ability to produce outputs of a greater tangible value. If we are to delve deeper into the realities of the perceived value created by these systems and processes, we can conclude that optimisation is indeed the key ingredient to attaining success.