In an era where technology and data dominate business strategy, there is a lesser known yet highly impactful tool that many companies are beginning to explore operational research (OR).

Often overshadowed by buzzwords like AI and big data OR offers a strategic advantage for business leaders looking to make informed decisions, streamline operations, and unlock untapped potential.

Operational Research: A Strategic Business Tool

At its core, operational research is about solving complex problems through a scientific, evidence-based approach. Originating during World War II, where it supported military strategies, OR has since evolved into a versatile methodology that is being applied in industries from healthcare to transport and logistics to retail. It combines data analysis, mathematical modelling, and strategic thinking to help businesses navigate challenges and uncover optimal solutions.

For instance, OR can assist a retailer in balancing stock levels in line with customer demand or enable a logistics company to optimise its delivery routes by factoring in traffic, costs, and deadlines. The result? Better decisions, reduced risks, and increased efficiency.

The Role of OR in the Age of AI and Big Data

AI and big data are powerful tools for identifying trends and making predictions. However, they often need the interpretive and problem-structuring capabilities that OR provides. While AI might predict a surge in demand OR will determine how to meet it and whether that is through reallocating resources, adjusting production schedules, or reconfiguring supply chains. This complementary relationship between OR, AI, and big data empowers businesses to move from insight to action with confidence.

Pilkington's Success Story

One of the most celebrated examples of OR's business impact comes from British glass manufacturer Pilkington UK, part of the NSG Group. Faced with the challenge of minimising waste while cutting glass sheets to size, the company employed linear programming to optimise its cutting patterns. The results were transformative: the company reduced costs, improved production efficiency, and enhanced responsiveness to their customer needs. This pioneering application of OR cemented Pilkington's reputation as an industry leader and remains a benchmark for business innovation.

OR Applications Across Industries

Today, OR is driving efficiency and innovation in diverse sectors:

  • Aviation: OR helps airlines optimise flight schedules and airports streamline their operations, from reducing security queues to managing baggage systems.
  • Healthcare: The NHS uses OR to improve patient flow, optimise bed allocation, and reduce waiting times. In Wales, OR-driven initiatives have streamlined cancer diagnostics, significantly improving survival rates.
  • Retail: Companies like Tesco leverage OR to forecast demand, manage inventory, and reduce food waste, leading to increased profitability and sustainability.

The Rise of Digital Twins

Looking to the future OR is increasingly integrated with cutting-edge technologies like digital twins. A digital twin is a dynamic simulation of a real-world process, operation, or system. By creating virtual replicas, businesses can test strategies, refine designs, and optimize operations before implementing changes in the real world.

In industries like automotive, aerospace, and manufacturing, digital twins are transforming product development by reducing costs and accelerating innovation. Their potential extends to smart cities, where they can enhance urban planning, and healthcare, where digital patient models could revolutionize personalized medicine.

A Competitive Edge for SMEs

For small and medium-sized enterprises (SMEs) OR represents a strategic opportunity to level the playing field with larger competitors. By adopting OR methodologies, SME businesses can make data-driven decisions, improve operational resilience, and adapt to rapidly changing market conditions.

Conclusion: Operational Research as a Business Imperative

As businesses look ahead to 2025, OR research offers a powerful toolkit for decision-making and problem-solving. From its proven applications in healthcare and retail to its potential in emerging technologies like digital twins OR is well positioned to become an indispensable asset for businesses of all sizes.

For forward-thinking companies ready to embrace OR, the benefits are clear: enhanced efficiency, reduced risk, and a competitive edge in the market. It is time for businesses to recognise operational research as not just an option, but a necessity in their strategic arsenal.