We are a quarter of the way into the new year and market pressures continue to mount. Tight margins, increased inflation, labor shortages and competition show no signs up letting up. The temptation might be to shrink back and push the pause button on implementing new technology or new processes, but that couldn’t be further from the truth. Now is the time to lean in and invest. Invest in new technology, invest in new processes, invest in next practices.
It seems counter-intuitive, but it’s not.
Organizations that invest more during the period leading up to and during a recession actually produce better results. A Deloitte study documented that “ahead of the 2000–2001 recession, investment-resilient manufacturers invested US$15.1 for every US$100 in revenue, compared to an average of only US$4.7 per US$100 for other companies. Similarly, leading up to the recession of 2008–2009, the same group invested US$14.8 for every US$100 in revenue, compared to just US$3.4 per US$100 by other manufacturers.” As a result of investing in technology and assets, these organizations achieved a much higher revenue growth during the recovery phases.
Investing in technology and next practices during a recession is critical for future success.
Our CEO, Tim Yates, recently had the privilege of speaking on a panel hosted by Modern Distribution Management that laid out a roadmap for accelerating productivity and profitability this year. He spoke alongside Paul Pretko, Industry Executive Advisor, Wholesale Distribution for SAP and Jimmy Dickinson, Vice President of Industry for NTT Data. The discussion was rich and each speaker brought distinct viewpoints and specific examples for how B2B organizations can better position themselves for success through topics like:
Augmented Intelligence
– the idea that organizations need to have access to real-time data intelligence to augment people with the right tools to do their jobs more effectively. As Igor Jablokov, CEO of Pryon, explains it, “augmented intelligence combines the strengths of humans (reasoning, creativity, judgment and flexibility) with machines (perfect recall, accuracy, speed and logic) to give us an incredible boost in cognitive performance.”
AI/Automation
– There are a number of ways organizations can pilot AI and automation technologies like machine learning in simpler scenarios that can automate and streamline business processes and generate huge revenue gains. For example, machine learning that has access to real-time master data (such as order and quote data) can be used to spot redundancies in processes and documentation that ultimately saves time, money and allows the business to respond quicker to the customer requests and orders.
System Upgrades
– There is no question that one of the biggest benefits an organization can make is in upgrading its legacy platforms to more cloud-based technologies like SAP’s S/4HANA. Cloud technologies are a game-changer in terms of the agility, adaptability, and infinite scalability they provide. But businesses do not have to ‘eat the elephant’, so to speak, all at once. The migration process can be broken down into smaller bites and there are a number of ways organizations can streamline this process so critical business and sales processes are not impacted.
Total Experience
– The system and processes you are using have to work in all directions – for the customer, for the employee and for the vendor. It is no longer just about the customer. Rather, organizations need to look at the Total Experience in terms of how all of these groups fit together and are the sales and order processes you have in place seamless, easy to use/manage, and effective?
But one of the most interesting discussions centered around the topic of next practices and what businesses should embrace for 2023. The idea of next practice is to take it a step beyond what industry would typically define as ‘best practices’. For example, a best practice idea might be to address repetitive tasks and finding ways to automate those. Next practice, however, is all about being innovative in the way you approach these tasks. Best practice is to focus on the customer experience, whereas next practice would take it further in figuring out how the Customer Sales Rep (the employee) interacts with the customer, as well as how the company interacts with vendors upstream. Being innovative to tie all 3 of these pieces together in a cohesive way is the next evolution. And with that cohesion comes faster, more efficient answers – less mistakes, and an overall better experience.
Listen to the webcast to learn much more >> https://dataxstream.wistia.com/medias/osbw57q6zi