“Historically, ERP systems were implemented every 5 to 10 years and upgrades were made every year or so. With digital transformation, multiple software platforms interact with each other and constantly change the environment, the spend, and the ROI.” – Chris Stephenson, Business Consulting Principal at Grant Thornton
CFOs need to find a way to reduce costs and increase productivity, while increasing customer satisfaction and other valuable intangibles. This can be accomplished by understanding the robust nature of integrated technologies and knowing which one is best suited for the business.
“IDC recently made a bold prediction: 75% of organizations will become completely digitally transformed by 2027, and the rest will go out of business. Why? Successful digital transformation allows businesses to operate with a level of agility necessary to adapt to a marketplace that is increasingly volatile, uncertain, complex, and ambiguous.”
Increasingly, the growth of midsize businesses depends on the strength of a unified modern data platform, which is critical for turning data into insight. IT leaders must create a trusted foundation of connected, real-time data that is carefully and faithfully governed, orchestrated, and made accessible business-wide. Furthermore, the infrastructure, tools, and services supporting this platform must be flexible and agile enough to immediately address shifting customer demand, increasing disruption, and evolving market dynamics.
Efficient Processes are Transforming the Manufacturing Industry into a Lean, Mean Profitable Machine
Efficiency is crucial in any manufacturing process. Consumers never think about all the time and money it took to create the products, instead their sole interest is getting the product they want at an acceptable price point and within a reasonable time frame. In an effort to optimize operations, many manufacturers have adopted a “leaner” way to refine processes without being afraid to scrap inefficient practices or roll out better-optimized procedures—even if those changes seem minuscule at first glance. If properly executed and implemented, lean manufacturing will not only improve the efficiency, effectiveness, and profitability of the work done on a factory floor but also transform the whole of a business and its processes.
Business leaders need an advanced tool to gain important insights into their business. However, implementing a new technology is only part of the solution, rather than the complete answer to their business challenges. When applying a new technology tool, it is important to integrate it with their organization’s business processes and data management so they can ensure the validity of their analytics. Applying a new IT tool might lead to doing something better than it was being done before, but that might not be the right thing to do. By adding effectiveness at the beginning of the solution, then the right thing will be done, with the right tools, in the right way. Before relying on a new technology for making business decisions, it is important that you can first answer the questions, “why use this tool?” And “how can I best use this tool?”
“With advances in digital technologies and analytics, adopting a zero-based mindset is not about slashing costs in whatever way possible. It’s about finding the resources that are not being used efficiently and reallocating them to improve capabilities, fund growth initiatives and increase competitive agility in a rapidly changing and complex environment.”
Because half of a company’s costs lie in the supply chain or cost of goods sold (COGS), supply chain leaders are under constant pressure to reduce costs. A zero-based mindset is more than hunting down old costs in new ways. It requires a major shift in thinking about spending and cross-organizational commitment, and it’s enabled by digital technologies.