Terminal operations are constantly facing multitudes of challenges that they have to overcome to survive. Increasing container sizes are pushing the traditional limits of terminal processes and throughput, and terminals are constantly looking for ways to improve efficiency just to keep up. To succeed in today’s world, terminals have to do more with less while staying at the forefront of innovation and optimization.

Luckily, data analytics is the perfect tool for helping terminals solve these challenges. The problem, however, is that too few organizations are using data to its full potential. When done right, data drives a never-ending cycle of improvement and success. When done wrong, data can create a mess that no one wants to clean up. 

Here is how it works. Good data can drive innovation that improves operations and shapes the strategic vision of an organization. That strategic vision then guides analytical questions that feed into data collection, which drives more innovation. The end result? A continuous feedback loop of constant improvement within a business — something that we at Tideworks call the Virtuous Cycle of Innovation.

 

 

What is the Virtuous Cycle of Innovation?

The virtuous cycle of innovation is a crucial tool for implementing a data-driven mindset in terminal operations. The cycle begins with a strategic vision and ends with innovations and insights that allow you to refine and update your strategy to start the cycle all over again.

Strategic Vision Guides Data Collection and Analysis

Everything in business starts and ends with strategy. Leaders have to establish a vision for the organization to work toward. A good strategy creates Key Performance Indicators (KPIs) that shape data collection and tell operators and analysts what data points matter. KPIs also tell team members what questions need to be answered and what problems need to be solved in order to fulfill strategic goals.

 

Data Provides Insights and Innovation

Analyzed data is intelligence — actionable information that can be used to guide decision making. Data can reveal inefficient methods and processes that need to be replaced or improved. It can identify trends to help make forecasts and predictions. Bottom line, data enables innovation and gives leaders the insight they need to lead effectively and achieve their strategy. 

 

Download our Manzanillo International Terminal (MIT) Case Study to explore how Tideworks implemented Tideworks Insight at MIT to increase productivity and minimize downtime.

 

Innovative Ideas are Implemented and Strategy is Updated

Based on the insights provided by data analytics, leaders can then refine and update their strategies to adapt to the state of their operations. A strategy can only remain effective and relevant if it is shaped and guided by good data. In turn, good data is the result of a strategy that asks the right questions. This is the heart of the Virtuous Cycle of Innovation

 

Obstacles to the Cycle

The idea of a data-driven cycle that creates constant improvement is nothing new. It is a core concept of business leadership. Far too often, however, the process breaks down and the data-driven approach is needlessly abandoned. Here are some common obstacles that get in the way of the cycle’s success.

 

 

Lack of Strategic Vision or Unclear Vision

Without a proper vision to guide the process, how will your team know what key areas need to be focused on? The problem with data is that there is far too much of it available. Without a set goal, no one will know what data points are relevant and may waste valuable time tracking numbers that aren’t relevant and conducting analysis that’s not useful. A lack of strategic vision can turn the cycle into a waste of time and resources.  

Even if a strategic vision does exist, it has to be understood by the whole organization and it needs to be measurable. How are team members supposed to execute the strategy if they do not know what it is? How does someone know the strategy is being met if there are no measures for success? 

The best way to do that is with KPIs that are directly and clearly tied to each aspect of the strategy. Each key part of your strategy should be trackable by one or more of your KPIs, like a scorecard. Innovation has to be measured against something tangible — your organization’s bottom line, customer experience, processes, whatever matters to your organization and its strategy.

 

 

Lack of Good, Relevant Data

The organization might have a measurable strategy, but if there is not enough data or the right data is not available, it becomes impossible to answer the questions needed to drive innovation and improvement. The cycle is only as good as the inputs that go into it. Accurate, relevant data is critical to answering the questions that a strategy asks. 

In addition, the data needs to be managed effectively and efficiently. Data-driven leaders who understand the process will tell you that decision-making, strategy shaping, and innovation implementation only make up 20 percent of the work. The other 80 percent — the lion’s share of the effort — is all spent on data collection and management.

This is where Tideworks steps in to help. Our data analytics platform helps simplify the 80 percent, freeing you up to focus on the key decisions and strategy forming. Tideworks has the terminal operations experience to understand what key factors you care about, and can give you the tools necessary to collect and analyze the right data.

 

 

Getting Started

The Tideworks Insight team is skilled and dedicated to working across every aspect of your organization to not only establish the data but to also give it strategic context and relevance. Data answers the what, and strategy answers the why. It takes both to execute the Virtuous Cycle of Innovation successfully. 

To learn more about implementing this cycle into your terminal operations, watch our Tideworks Insight webinar where our team delivers their expertise and key concepts to help your organization get on the road to an ever-improving, data-driven mindset.