Col. John Boyd, was a USAF Fighter Pilot, and the developer of the OODA loop, or Observe, Orient, Decide, Act. He, along with Dr. W. Edwards Deming, who developed the PDCA Plan, Do, Check, Act loop, used statistical analysis to lay the foundation for much of the core business process improvement concepts and tools, such as SAP Analytics, in use today. The key element of both of these concepts is the loop or feedback information that runs through the loop. Today's highly integrated, global, always on enterprises can benefit highly from taking a look at these loops within their enterprise and redesigning them avoid these mistakes.
- Not identifying your business processes step-by-step, and determining whether they are in statistical control.
Most manufacturing companies today live in an environment were 100% quality is the expectation.
- Not linking your strategy to execution via real time customer interaction and data acquisition.
- Failing to respond to incoming information, especially from customers, about any defect with any aspect of your business.
Larger enterprises have an especially difficult time ensuring the customer's voice does not get lost in the ocean of data that is today's business environment.
- Not measuring and adjusting to the results of the Act part of the loop.
- Underestimating the difficulty and the potential benefit of using predictive analysis in the loop.
For example, if you are retailer, are you using the SAP Analysis Process Designer's predictive analytics capability, i.e., uplift modelling, to adjust to consumer demand patterns?
- Neglecting the required business process modeling of feedback loops to effectively use SAP HANA when doing 'Big Data' analysis.
- Not incorporating active competitor analysis into your continuous feedback loop, thereby allowing a competitor to steal a march on you.
One Thing You Can Do
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