Digitalization not only drives opportunity to streamline processes, improve end-user privacy and create better customer experiences but at best digitalization enables completely new business models and sources of income. However, studies have shown that the on-going digitalization and the increasingly fast pace of the global environment cause a lot of headache for corporate executives: some feel they don’t understand the opportunities provided by digitalization and that it’s hard to keep up with the pace.
It is human nature to reject things that one has difficulty to understand or control and to resort to what is familiar and comfortable. A scary piece of evidence of this is a recent report by Gartner, according to which 51% of corporate executives in Finland believe that digitalization will only affect their businesses in a minor way.
CEOs have two main strategic accountabilities from a financial perspective: to increase the turnover of the company and grow profitability (in order to grow strategic shareholder value). In addition to questioning status quo, being innovative and managing change efficiently, a successful company normally focuses relentlessly on it’s competitive advantages which in turn drives turnover and profitability. On the other side of the glass it examines critically all support operations and processes in order to improve the profitability.
I have always felt that the best way to manage change is to create change. Pros, cons and opportunities of business reorganizations are topics that often arise when I discuss with corporate executives. Examined and approached professionally, outsourcing is a good vehicle to increase visibility, streamline processes, increase accountability and improve profitability. Simultaneously I feel it is imperative that clients evaluate carefully which operations and processes it should outsource. When outsourcing it is good to keep in mind that accountability is something that can not or should not be outsourced. Also, keeping in mind that in the end there is people behind “everything” it is wise to see your outsourcing supplier as a partner instead of a supplier.
A core competency and growth area of Enfo is to examine our customers’ operations and processes, take a 360 view to identify issues and problems and come up with a targeted solution. By leveraging Enfo’s extensive experience in re-designing processes, removing waste, digitalizing processes and by leveraging both economies of scale and continuous investment in latest technologies we help our clients to improve transparency, predictability, ownership and cost efficiency within both their core and support operations and processes.
Tips for corporate executives – how to stay up to speed in the increasingly competitive environment:
- Put those hawk eyes on your competitors! Copy the business blueprint of disruptive companies, leverage your brand and create a unique customer experience.
- Acquire expertise – why not acquire a company that holds the skills that your company needs to successfully lead that difficult but so necessary business change journey
- Work within ecosystems. Collaborate closely with partners that have such skills, capabilities and know-how that your company is lacking.
- Provide freedom, test things and make it possible within your company to fail fast.
- Understand that your best ideas might not yet be acceptable today because the markets are not ready for them.
- Employ a couple of hardcore/innovative professionals to shoot holes in your current business models. Incentivize them to come up with ideas and solutions to thrive in the future.
VP and Head of Sales at Enfo