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Efficiency in practice: how can it work for us?

When examining Hungarian companies, one often hears or reads from analysts that companies are operating at low efficiency. But what exactly does this mean and why is it happening?

People sitting in an office with charts on the screen

This inefficiency is in fact an expression of the loss that the company is absorbing instead of the maximum profit that can be achieved. This loss is in fact an activity whose value creation is zero or lower than would be optimally achievable.

The aim: Optimising profits and creating value

However, the primary goal of companies is to maximise profits and value creation. To achieve this, low value-creating activities must be identified and transformed. In the IT sector, which is leading the fight for efficiency, a number of solutions have been developed and tested, which have been successful for many companies in all segments of the sector.

Why do good-sounding buzzwords fail? alias the success of methodologies depends on the details

The devil, as always, is in the detail. It is useless to use the well-known buzzwords; agile development, devops, IT governance, service-oriented IT organisational model, if we do not follow and adhere to the principles of the given area during implementation.

If only certain elements of a theoretically effective system that we like are implemented, or if national, local or company cultural specificities are not taken into account when applying a method, success will be doubtful.

„Agile Project" or "Chaos"?

We often hear "we manage the project in an agile way". This phrase is mostly used to cover up unpreparedness and chaos. In other cases, it is said that "the project is Waterfall, but the development is agile"; in some cases this is just an explanation for the anomalies between the project design, management and development teams.

Why does it work elsewhere and not here?

In the 1980s, there was a saying in the US about the then legendary marketing activities of the Japanese: "How can marketing strategy work in Japan but not in the US? Well, quite simply because the Japanese do it by the book, but they stick to it."

Patience and precise implementation are the keys to success in increasing efficiency

How do we build efficient IT organisational structures that work in the long term?

The answer to the above parallel is obvious and simple: build a well-designed development, operations, project organisation, effective IT Governance and Service-oriented IT that is aligned with the maturity and culture of the company, but do so by taking all the recommended steps and accepting that any change and the results it brings will take time.

About author

Bach Gyula Szerzo
Gyula Bach

Senior Consultant

Energy & Public

As a Senior Consultant, Gyula Bach has been a valuable member of the Stratis team for six years, currently working as an IT and OT expert in the energy sector. He has contributed to numerous projects within the energy industry, including the establishment and organization of BI entities, the implementation of data warehouses, and the auditing, reorganization planning, and modernization of production control organizations and IT-OT systems. Additionally, he plays an active role in the research conducted by Stratis, focusing on the application of IT changes in the energy sector.

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