Efficiency
Efficiency is a relationship between ends and means. When we call a situation inefficient, we are claiming that we could achieve the desired ends with less means, or that the means employed could produce more of the ends desired.
Economic Efficiency is measured not by the relationship between the physical quantities of ends and means, but by the relationship between the value of the ends and the value of the means. When we say a process is "inefficient," we are saying that we should be able to produce the desired output with less effort or produce more output with the same effort. That's the economic equivalent of "doing more with less" that we discussed at the beginning of this chapter.
Data Ramifications: Data and analytics play a major role in driving efficiency improvements by identifying operational deficiencies and proposing recommendations (prescriptive analytics) on how to improve operational efficiencies. The aggregation of the...
