How are you planning for digital disruption in your industry? What new KPIs could help your business?
Your business is at risk and you may not even know it yet. According to a new report from the Global Center for Digital Business Transformation “an average of roughly four of today’s top 10 incumbents (in terms of market share) in each industry will be displaced by digital disruption in the next five years.” To stay competitive you will need to embrace data innovation and digitalization. By doing this you be evolving your company to address the coming digital disruption. If you don’t your competitors will and your business will suffer.
But you might be thinking, “My business is working fine. Why should I invest in new innovation?” It is the classic “Don’t fix what is not broken” approach.
The ever annoying, but true, answer is: If you can’t find anything to improve on, you aren’t looking hard enough. For example, per Vorne Industries, manufacturing companies OEE (Overall Equipment Effectiveness) is between 60-85% . That means even a company with a world class OEE still has a 15% opportunity. What would a 15% improvement in efficiency mean to your business?
Implementing new innovation through technology can provide you better and more detailed insight, reduce your operational costs, add customer value, capture additional market share and create disruptive business models that can lead to new revenue streams. Start by looking at your company or organizational goals, cost drivers and pain points. Challenge established assumptions that limit your options. Finding the right opportunities puts you on a path to success. What are the biggest challenges in your company? Food for thought…
Or maybe you know your company has not unlocked its full data potential. You see inefficiencies, quality issues or risks and make poor and untimely decisions because your data is not integrated or you don’t have the right data available today. You need a plan to integrate your data and fill the data gaps that exists today, but don’t have the right resources or time.
Find a partner that can help you on your journey. It will be lade with pitfalls you need to navigate and you want to do it right the first time. Implementing the wrong solution could set you back months.
So what should you look for in a partner?
Focus on your needs and their ability to put you in a dominant position. Size here, does not matter. Primarily what you need is “a partner” that can provide co-innovation services. A company that is willing to work with you to understand your business and help you balance the risks this journey will have. You want a partner that isn’t just selling you their image or solution, but one that will find the best in class solution for your needs. A company that can bring you a vision and flexibility so that added value can be implemented as your company evolves. And one that knows data.
When is the right time?
Plan for the future now. It may not be the right time to implement a new innovative feature set, product or internal project, but finding the right solutions that can be implemented at the appropriate time can and should happen now.
How should I proceed?
Recognize that this will be a journey and commit to it. Collect the needed data to thoroughly understand your current situation. You need to answer the question “What needs improvement?”
Your value proposition will not be definitive as you find these opportunities so invest in the time required to validate them. This is where you can start to build your business case. Then analyze your data so that you know what to chase and why. Make sure you understand your business impacts. Find the low hanging fruit or identify the value add. This will lead you to the right solutions and NPV for budget approval. For implementation, mitigate risk. Take a phased approach. Implement and track KPI’s as you go. Be open to change and don’t tie yourself to a full blown business plan before you test a solution.
Be proactive and take control of your destiny. You know you need to change or adopt to new challenges, so regardless of the outcome you are taking steps to ensure your business’ success. Treat your setbacks as lessons learned, not failures. Your end goal should be to put a plan in place that allows you to continually evolve through insight and implementation. Implement changes incrementally to mitigate risk. Find the right partner that can help you balance this to meet your short and long term goals. Lastly, data is the key to unlocking your usable knowledge. Knowledge is power.