Operational Analysis & Reporting

User Operational analysis means the procedure by which a company measures its business performance, usually project-wise. It also includes analyzing a particular investment against its expected costs, completion time, and returns. To make it easier to understand, let’s briefly discuss operational analysis of a business idea. Let’s take the example of an industry where entry is restricted due to high entrance cost – let’s say a power plant. Firstly a massive investment cost is required – you will have to buy real estate, perhaps near to a water body and a steep waterfall, or would have to make a dam. Secondly, to start producing electricity, the costs that go into keeping the plant operational are high as well. The additional equipment that will be needed to store and transfer electricity will also be a costly affair. Finding, establishing, and running distribution channel is equally expensive and hard.

STEPS INVOLVED IN A TYPICAL OPERATIONAL ANALYSIS

It starts with the overall objectives of the company and how one or several projects contribute towards it; for instance if you are operating in a highly competitive industry, your objective may be to gain profitability through product specialization and unique selling points. Any project, investment, or research and development done towards making a newer product or modifying an existing one can be said to be in direct alliance with your overall objective. Secondly management effectiveness, operational efficiency, and resources productivity is evaluated. Services like procurement, research, inside sales support and other related departments also come into view while analyzing the overall operational efficiency of a project. Planning and products or services are also counted under this header. Finally the resources you need to achieve your targets in the pre-decided time frame are outlined and operational models are prepared to obtain the best of them at the lowest prices.

WHAT DO OPERATIONAL ANALYSIS & REPORTING TELL YOU?

• Your overall competitiveness
• Practicality and achievability of your business objectives
• An array of approaches that present different strategies to act on those objectives
• Current, past, and likely future customer trends and concerns
• Technology and assets requirements and service portfolios needed
• Capacity, capability, and future production and sales projections

WHY HAVE AN OUTSOURCING PARTNER FOR OPERATIONAL ANALYSIS?

As explained earlier, operational analysis and reporting is a complex task requiring highly qualified personnel. The predictions, projections, and project completion dates evaluated and brought out of an operational analysis sets the tone for the business’s future. If an inept person is tasked with preparing an operational analysis, the chances are astronomical of losses, missed time lines, and lost market opportunities. The people who do have the necessary qualifications, however, do not come cheap if you are to hire them as permanent members of your workforce. So this can be a costly affair to keep in-house.