Business ResilienceCIO TipsCostsCOVID-19Digital Transformation

Invest Now to Gain a Competitive Advantage

By CIO-Office

Every organisation is looking at how it can improve their customer experience, while reducing operating cost and improving profitability. 

The organisations that ultimately come out of this period stronger will be the ones that do things differently from their competitors, spending their money on the right things at the right time.

A recent article by Mckinsey stated that companies will need to rethink their operating model based on how their people work best. Sixty percent of businesses surveyed by McKinsey in April said that their new remote sales models were proving as much (29 percent) or more effective (31 percent) than traditional channels.

They also added that the acceleration of digital, technology and analytics is already a cliché: the COVID-19 crisis has accelerated the shift to digital. But the best companies are going further, by enhancing and expanding their digital channels. They’re successfully using advanced analytics to combine new sources of data, such as satellite imaging, with their own insights to make better and faster decisions and strengthen their links to customers.

The Breakup of the Traditional Service Delivery Models

COVID-19 has also forced organisations to re-invent their delivery models and challenge existing working cultures to adapt to the new normal:

  1. Location of work: Performance is now based on outputs rather than location, the majority of roles can be delivered remotely.
  2. Shared Services and Outsourcing: Business processes that were previously considered too complex, are now being delivered through shared or outsourced services.
  3. Business Continuity: Previous plans have been ripped up. Greater resiliency is required from a network and infrastructure, labour and supply chain perspective. 
  4. Legacy systems: Previously seen as good enough, but now seen as a major risk to operations.
  5. Security: Remote working has meant the wider adoption of new security measures through the use of technology, policies and processes.
  6. Culture: The Monday to Friday 9 to 5 culture is gone. Replaced for many with a more flexible work/life balance that will be hard for people to revert from.

What’s Next?

Decisions made over the next few months on what organisations prioritise will have long lasting impacts, so it is vital that the right things are done at the right time.

We recommend taking the following actions:

  1. Accelerate digital adoption – Deliver in months rather than years.
  2. Exploit data, Internet of Things, and AI to better manage operations.
  3. Accelerate decommissioning plans of legacy systems.
  4. Up-skill capability – Now is the time to invest and recruit the best talent in the industry.
  5. Challenge the status quo on the operating model – Carefully consider shared services, outsourcing and captive delivery models for business processes.

For more information on how we can help you, please contact us!

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