This article was originally published in the Fall 2012 edition of OnAnalytics, published by the Institute for Business Analytics at Indiana University’s Kelley School of Business.
This article focuses on insights from Tom Preston, who at the time of the article’s publishing, led Booz Allen’s Enterprise Resource Planning (ERP) Advisory Services.
Business analytics has enormous potential to increase efficiencies and improve outcomes in government operations. The federal government alone has a budget of $2 trillion and annual expenditures of approximately $3 trillion; the Department of Defense, even before war supplementals, allocates some $520 billion each year. Federal agencies are always looking for ways to save money by finding more efficient ways to operate. For example, instead of relying on the historical cost of a product or capability, the government is leveraging analytics to model and determine what something should cost and then using real-time dashboards and visualization techniques to assess their performance against industry best practices. In addition to data on these expenses, sensors and radio frequency identification (RFID) are adding date/ time/location stamps to everything from shipped packages to key components of vehicles and aircraft. These many tracking systems offer rich material for business analytics, and government departments are beginning to implement such strategies as: