Managing operational activities in the most efficient way can help organisations of all types to achieve cost savings and improve business performance.

The think tank, Policy Exchange, has said a team of experts should be set up to ensure public data is more effectively used. Policy Exchange said better use of data, technology and analytics could help the government save billions by improving efficiency rather than cutting services. It could save taxpayers up to £33bn per year.  (BBC, 3rd July 2012)

Aldi, the international food retailer, has always focused on efficiency and ‘lean thinking’.  Minimising waste, Just-in-Time processes and flexibly skilled staff, along with sourcing high quality produce at good prices, means the company can sustain competitive pricing.  This has contributed to Aldi’s significant growth.

Report author Chris Yiu said: ‘Extraordinary quantities of data are amassed in the course of running public services – from managing welfare payments- through to issuing passports and driving licences. Finding ways to share or link this data together has the potential to save time for citizens and money for taxpayers.’

The Policy Exchange’s report says the biggest savings – between £13bn and £22bn – could be cut from day-to-day government running costs and public services by using the most up-to-date analytical techniques. Up to a further £8bn a year could be saved by better identifying cases of unpaid taxes and collecting a greater share.  Another £3bn a year could be saved by tackling fraudulent benefit claims.

A government Cabinet Office spokesman said: ‘Because we want to ensure the government functions like the best-run businesses, we are improving our management information and publishing it transparently to drive up its quality.’

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