Operation management business with AI in the digital era

According to a survey by McKinsey (2024), the business invested in digitization operation process can increase the overall performance from 20% to 30% and reduce average 25% of operating costs. This shows the influence of operation management lies not only in the aspect of internal management, but also directly impact business performance.

However, in fact, many businesses still have difficulty in controlling workflow, collaboration between departments or measuring employee performance. Causes mainly come from the lack of system management and operation, overall, leads to the situation handled, overlapping processes and the lack of data for decision-making.

1. Operation management what is?

Operation management is the process of planning, organizing, coordinating, controlling the entire operation of the business to ensure all resources including human, financial, technology, and processes used most optimal to achieve common goals.

Speaking in an understandable way, if the business is like a machine, the operation management is “the coordination center” ensure all gears operate smoothly, without interruption.

Other than, manufacturing management, which focus on activities that create the products, operation management has wider scope, covering the entire system: from hr, finance, sales, to project manager, customer care.

For example, a logistics company, software application management and operation can automate the process of receiving orders, track delivery status and performance reports of each employee. Thanks to that, businesses reduce time by 20% processing orders, increased by 15% accuracy in receiving (Source: Deloitte Operations Insight 2024).

Understanding and correct implementation operation management helps enterprises:

• Optimum work productivity of the individual parts.
• Cost reduction due to error process or delay in approval.
• Decisions based on data instead of hunches.
• Enhance the satisfaction of employees, customers through experience smoother operation.

In summary, operation management is the foundation to help businesses transition from model to operate traditional to model-based smart data and technology. This is the first step to proceed to business management, modern, flexible and sustainable.

2. Objective the role of operation management in business

2.1. Objectives of operation management

Objectives of operation management does not just stop at ensuring the processes in the business goes smoothly, but also aim to optimize the entire resources to achieve the highest performance with the lowest cost. This is a platform that helps businesses maintain a competitive advantage in the context of changing market quickly.

Specifically, the organizations and businesses are to find out information about operation management need to understand that:

• Firstly, the operation management helps to reduce waste in the process of working from the raw material to the processing time of the work.
• Monday, ensure product quality, stable service to meet customer expectations.
• Tuesday, improve employee performance and capacity management, created the work environment professional transparency.
• Fourth, support strategic decisions based on data, instead of relying only on subjective experience.

According to the PwC report (2024), the business invested in improved operational processes can increase productivity by 22% on average and up to 28% of the cost of internal thanks to the removal of stage craft, in duplicate. (Source: PwC Global Operations Survey 2024)

In summary, the objective of operation management is to optimize the performance of the whole system of business operations, directed to the sustainable development instead of just chasing short-term profits.

2.2. Role in system management overall

In the system of business management, operation management role center, the connection between strategic – human – technology – process. If for business as a living organism, the operation management is “the circulation” help every department coordination, ensuring the flow of information and work smoothly.

Specifically, the role of operation management subject is in four main aspects:

• Transform strategy into practical action: leaders can build good business strategy, but if there is no management system to operate effectively, then that strategy is very difficult to implement. Operation management help turn long-term goals into action plans specific, measurable helps business strategy execution fast more accurate.
• Create the link between the parts of the business: One of the common problem in many businesses in Vietnam is “fault information” between the departments. Operation management helps to establish process consistency, ensuring data is shared constantly help the department more effective coordination. For example, when the hr department update on attendance and productivity up system, the finance department can immediately calculate the cost of salary, the expected profit without the need to wait for reports manually.
• Measuring capacity strategy execution: through the index operation (Operation KPIs) such as labor productivity, the rate of completion of the work, or the cost of processing on each process, managers can evaluate the effectiveness of operation, determine the point of congestion that need improvement.
• Create platforms for the conversion of sustainable development: When a business has operating procedures, stable, well-managed, the deployment of technology, especially AI, automation or ERP system becomes easier and more effective. Conversely, if the internal processes lack of standardized technologies only complicate the problem.

In other words, operation management is the bridge to help businesses balance between “macro strategy” and “specific action” between “the people” and “power technology”. Thanks to that, the business is not only operational efficiency but also can adapt flexibly to market changes, to maintain long-term competitiveness.

3. The core elements in operation management business of modern

In the context of the rapidly changing market, the business just based on experience or reaction to situations is no longer enough to maintain efficient operation. Operation management modern demanding to be built on the foundation of data, technology and people. Below are the four core factors that help business establish a system for operating a sustainable, flexible, efficient.

3.1. Management process

Management process is the operation defined, standardized optimal way work is done in the enterprise. A process is well designed to help reduce errors and eliminates the duplicate to ensure all parts coordination.

For example, in business there are many levels approved as proposed purchase, browser, costs or rewards, if done manually via email or paper will occur delays, lack of transparency. When a business application system automatically approved, each request will be turning right people for the right level, in a timely fashion.

Core values of the management process is not located in the “digitized” merely, which is building a process transparent, measurable, easy to improvements could expand as business grows.

3.2. Hr management, performance work

People are at the heart of all activities operated business. A system of good process will become meaningless if the lack of qualified personnel, and motivation. Therefore, human resource management associated with work performance are important factors in managing the operation.

Modern businesses often applied management model performance according to KPIS or OKR to align personal goals with the common goal of the organization. Besides, the tool as software, timekeeping, payroll, performance reviews help managers easily monitor productivity, control costs and take the correct decision.

The value that hr brings in operation management is building team cohesion, transparency about the goal, has the ability to adjust itself to adapt to change, instead of depending entirely on commands from the management level.

3.3. Data management decisions based on data

One of the biggest changes in business operation today is the decision is no longer based on sentiment, which is based on the data. Data management is the ability to collect and analyze information extraction from various sources such as HRM (hr), CRM (customer) or ERP (financial management, inventory) to make the correct decision in a timely manner.

When data is connected, businesses can see the panoramic view of performance, determine the point of obstruction and predict trends to actively act instead of react late.

For example, A manufacturing company can use the data from your attendance and productivity to forecast real output, adjust the shift or staffing reasonable. This not only saves costs but also ensure timely delivery for customers.

The value of data governance is to transfer the business from operating according to the sense to operate based on the figure helps to optimize resources at the strategic level.

3.4. Risk management compliance

Operational risk can come from many aspects: the flaws in the process, lost data, the leave unscheduled or non-compliance with internal regulations. So, operation management is the need comes with a control system, risk initiative – early detection, rapid response and timely preventive.

Top businesses often set up system alerts automatically in the process to detect abnormal (such as the cost exceeds the threshold, data is false or slow approval).

Risk management not only help businesses comply with regulations, laws and standards that protect reputation, data, customer confidence factor increasingly important in the era of digitization.

In summary, the four elements on the form the foundation for a system of governance operate modern enterprise, where every activity is tightly controlled, making decisions based on data, personnel are empowered and risks are actively managed. When these elements are integrated with technology, business not only increase performance but also achieve transparency, flexibility, adaptability, long-term in a competitive environment increasingly fierce.

To build management system to operate effectively, let's start from the evaluation of existing processes, identify points that need automation, which is the first step to transformation business models operate smart.

4. Trending apps in ONE operation management in the digital era

In the context of transition of going strong, operation management enterprise does not just stop at ensuring stable operation, but also to become strategic elements to help to improve productivity, optimize costs and increase competitive advantage. Here are three trends are shaping the way organizations and businesses today operate more effectively in the digital era.

4.1. Automation and artificial intelligence AI

Automation and AI are changing how business operate and manage the machine. The repeat task like data entry, collating data, or approved internal systems can be performed many times faster than humans.

According to the report, McKinsey Digital Report 2024 automation, helps enterprises reduce to 30% and operating cost increased by 25% performance internal processes. This is especially useful for businesses are want to optimize hr processes, accounting or production without expanding team.

For example, in the field of hr management, the AI system clocking and data analysis work to help HR departments identify early overload, deviations stop or reduce the performance from that proposed plan adjusted accordingly.

4.2. Operation management business with AI

AI not only automate the manipulation, but also acts as the “brain” analytical support management decisions based on real-time data.

A number of application specific management in operating the business can mention:

• AI timekeeping and measuring employee performance: the System can identify behavior, work, attendance across the face, from which performance ratings according to objective data instead of feeling.
• Chatbot internal: Support staff lookup process, please leave or receive information salaries and bonuses without the need for manual intervention.
• AI Workflow systems such as the LV DX Dynamic Workflow of Lac Viet: allows you To automate the entire flow approve, monitor progress and evaluate the effectiveness in real time. This helps the manager has the overall look of commissioning spot detection blockages to process improvements quickly.

Thanks to AI, business not only shorten the time to handle internal affairs to 40%, but also improve accuracy and transparency in operation management.

4.3. Integrated software operation management overall

Another trend is to be more organized, business choice is to integrate the management system discrete (HRM, ERP, CRM) platform administration operating system....

When the data between the departments are in sync, business, easy to grasp the situation overall operation, remove duplicate reduce errors in the information exchange.

For example, the integrated LV SureHCS with LV DX Dynamic Workflow has helped many enterprises reduce operating costs and increase productivity handle internal records. This is evidenced clearly shows the strength of the management system operated smart when deployed in the right way.

In the era of digitalization, operation management, business intelligence not only is the trend that has become indispensable requirement if the organization wants to sustainable development. The investment in the platform integrates AI and automation not only saves cost, but also bring competitive advantage long-term in the personnel administration, finance, operate and comprehensive.

5. LV DX Dynamic Workflow – automation platform flexible processes according to business requirements

In the context of business increasingly important to optimize the workflow internal and enhance operational efficiency, the application of technology artificial intelligence AI in operation management business no longer is the trend that has become actual needs. One of the highlights solutions are many organizations and businesses the choice is LV DX Dynamic Workflow – automation platform flexible processes developed by Lac Viet.

Other than the software operation management pre-packaged, LV DX Dynamic Workflow designed according to the model “Dynamic”, i.e. it can adjust, add or expand the features based on the particular requirements of each business. This helps the organization to easily digitize an approval process internally as: attendance – payroll – browser expenses – approve leave – report personnel, etc. without having to change the structure of the existing system.

Specific software support:

• Design and automation processes operate without the need for complex programming.
• Integrate smoothly with existing systems such as hr software SureHCS, accounting, task management or ERP system.
• Authorization, approval, and track progress in real time to help managers grasp the situation operated business anytime, anywhere.

Thanks to this ability, enterprises not only to reduce dependence on manual action, but also to ensure the free flow of information internally is always transparency, consistency can trace when needed.

LV DX Dynamic Workflow not only operate independently, but also seamless integration with hr solutions SureHCS help create an eco-system operation management comprehensive.
Data from time and attendance system, payroll, approval of the stay, the proposed purchase... are rotated automatically via LV-DX, help reduce the workload for HR departments and accounting and provides a synthesis report for leaders quick decisions more accurate.

Can say, LV DX Dynamic Workflow is a practical solution for businesses that are looking for tools to support management, operational intelligence, capacity management and effective internal working.
With the ability to deploy according to the specific needs and form on-premise to ensure the security, this platform helps enterprises ensure both flexible, moderately good control of internal data.

Experience now demo version LV DX Dynamic Workflow to discover how this platform helps your business operate automatically effective, more transparent.