Achieving Operational Excellence With AI And Machine Learning

ACHIEVING OPERATIONAL
EXCELLENCE WITH AI AND
MACHINE LEARNING
By Faisal Hoque
founder of:
Operational excellence enables an enterprise
and its leadership to continuously improve all
areas of performance, including decision-
making, ongoing investment, profitability,
customer and partner services and human
resources capabilities.
[Image: Flickr user Jonathan Bliss]

AGENDA
•  FUNDAMENTALS
•  AI AND MACHINE
LEARNING
•  ROADMAP
•  MANAGING RISK
•  CONCLUSION

Operational
excellence had
its genesis in
manufacturing
dating back to the
pre-Industrial
revolution.

In his 1776 magnum
opus, The Wealth of
Nations, economist
and philosopher
Adam Smith was
among the first
great thinkers to
define this now
widely used
concept...

Smith famously
described a small
pin factory where
10 workers, each
specializing in a
different aspect of
the job, could
produce over
48,000 pins a day.
Left to make a pin on his own,
each of these workers might not
have manufactured a single one
in a day, and certainly not more
than 20. The division of labor
immensely increased the
productivity of each worker.

It’s still true today that assigning different
roles and responsibilities across an enterprise
enables scale, lowers costs and leads to
greater operational efficiencies.
Delivering continuous improvement in the
marketplace among competitors and customers
requires enterprises to identify, understand and
create the capabilities, behaviors and focuses
necessary for repeatable, continuous and measurable
operational improvement.

AI and Machine
Learning is a natural
fit for Operational
Excellence...

$62 billion is lost through poor customer service — a
deficit that continues to increase with every passing
year. AI can help plug that leak by going above and
beyond what humans are able to do.
•  Machine learning helps companies like Uber
determine arrival times for rides, estimate meal
delivery times on UberEATS, and compute optimal
pickup locations.
•  Google uses deep learning for voice and image
recognition algorithms.
•  Amazon employs it to help determine what
customers want to watch or buy next.

AI and machine learning have the potential to
significantly reduce and contain ongoing operational
costs for public sector agencies. Consider the following
examples:
•  US Army’s Medical Department is developing wearable
monitors that use a machine-learning algorithm to weigh the
potential seriousness of wounds, to assist medics in
prioritizing treatment or evacuation.
•  The White House and US Customs and Immigration Services
use chatbots designed to answer basic questions and leave
complicated responses to a human.
•  The US Postal Service uses handwriting recognition to sort
mail by ZIP code; some machines can process 18,000 pieces
of mail an hour.

Being operationally
excellent requires a
focus on management
capabilities to develop
and promulgate
standards, coordinate
decision-making,
optimize service
delivery and to
manage the
workforce.

Roadmap For Operational
Excellence Journey

Orchestrating these capabilities
requires a unification of cross-
functional management disciplines.

These capabilities can be
organized around the five
core characteristics…

1. Visualize Key
Operational Processes.
Identify the key operational processes,
including those that create value, growth
or innovation as well as those that
consume the most resources, time and
assets. Develop visual operating models
that show linkages both inside the
enterprise as well as outside, to
customers, suppliers and partners.

2. Design Workflow and
Predefined Responses.
Model the workflow for each key
process, identifying the actions,
resources and workers required for
each step. Then define a standard
response to handle large variations in
workflow volume outputs or inputs.

Establish measures for normal
workflow and develop systems or
methods that report workflow
volume outside the normal ranges.
Ensure that workflow reports are
received by the stakeholders
responsible for each operation.
3. Develop Metrics
and Gauges.

4. Operate Functionally,
Measure Systemically.
The functional operating manager
responsible for workflow, using the
predefined responses, operates the
workflow by making any changes
necessary to adapt to changing
volume, inputs or outputs. Functional
managers interact with upstream and
downstream operating mangers to
ensure optimal end-to-end
performance.

As operating experience grows,
make adjustments to the
workflow design, predefined
responses and performance
measures, to continuously
improve overall system
performance.
5. Drive Continuous
Improvement.

Managing
Operational Risks
To manage most business
operations, enterprises
must cultivate a culture of
risk management that is
vigilant in its pursuit and
disciplined in its
execution.
“Systemic operational risk originates in the complex
interactions among the components that constitute
a system. An individual component can function
flawlessly while the overall system experiences a
massive failure, or the system functions as an
impact multiplier, magnifying the effect of a single
component failure.”

Step 1: Identify The Risks.

Operational risk identification is the
process of identifying of sources of risk
from all directions, internal and external.
Risk identification is an inherently creative
process, and as such, it requires the
collaboration of diverse minds and
different perspectives that represent all
constituencies.

Step 2: Establish A
Control System.
Risk mitigation is an analytical process
that devises a control system to
mitigate each identified risk. Control
systems range widely. They can be
designed to respond to a risk event,
to reengineer the process to
eliminate or transfer the risk, or to
detect the risk early, before it can
cause significant damage.

Step 3: Test, Test, And Test Again.

Control systems require compliance to be effective, and
testing simulates risk events and the control-system
response. Test results are fed back into improved and
more effective control systems; they also serve to identify
new sources of risk, each of which requires a
corresponding control system.

Technological
transformations will
continue to reshape the
way the business world
is organized.

Achieving Operational Excellence With AI And Machine Learning

Assess, Learn, Grow, Monitor

Transformational journey towards operational
excellence requires constant assessment,
learning, growth, and monitoring of:

1) People and Culture;
2) Capacity and Capabilities;
3) Innovation; and
4) Technology.

Shadoka enables aspirations to lead, innovate, and
transform. Shadoka’s accelerators and solutions bring
together the management frameworks, digital
platforms, and thought leadership to enable
innovation, transformation, entrepreneurship, growth
and social impact.

We bring together the management frameworks,
digital platforms, and thought leadership for:

•  Evaluation, execution, and monitoring of
programs
•  Scaling sales, revenue, and profitability
•  Creation and management of digital communities
and marketplaces
About SHADOKA
Follow us @shadokaventures
shadoka.com

About Me
Founder of Shadoka

A Top 100 Thought Leader. A Top 100 Most Influential
People in Technology. Founder, CEO, Chairman, and/
or board member of multiple international
companies. Author of multiple publications on
leadership, entrepreneurship, management,
innovation, and mindfulness. A regular, top
contributor to Fast Company, Business Insider,
Medium, and other publications with thousands of
viral social media followers from around the globe.

Follow me @faisal_hoque
faisalhoque.com

Achieving Operational Excellence With AI And Machine Learning

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