#DigInnovation: Enabling companies to transform with speed and agility
11 December 2017
Paul Heller, CTO, Sopheon
Digital Innovation (or #DigInnovation) is not going to go away. Companies are continually being disrupted and they need the ability to adjust quickly and efficiently to their changing market.
A 2016 survey* indicated that 86% of enterprise decision-makers felt they had a time frame of two years to make significant inroads into digital transformation or they would suffer financially and fall behind their competitors. Here we are, one year later. Speed and agility are the mantra of the day, but companies are still struggling with how to make the transformation of the corporate processes real in order to drive growth and remain relevant in the market.
Struggling to keep up with the market using legacy models of working
Many companies have complex, outdated innovation processes – they haven’t organised their internal processes to match current business needs. In other words, they are digitalising their products but often-times trying to do it with old, non-digitalised processes. Worse yet, the pace of business today requires that companies continually adapt and change their processes as opportunities and challenges arise, at an increasing speed.
Industry leaders are digitalising their processes as well as their products and services, delivering speed, flexibility, and adaptability to increase revenue streams and stay relevant in the face of disruption.
Dynamic planning trumps annual planning
In the past, it was okay for businesses to put plans together for the next 12 months. However, that is not going to be sufficient in today’s fast-moving market. Planning needs to be done much more frequently. The annual planning process itself can be lengthy, cumbersome, and manual, and it is nearly impossible to do it more frequently, and still maintain accuracy, when doing things the old way. It can take months to collect and analyse data needed to make decisions, so business leaders typically end up making decisions based on information that is already out of date and/or interpretations of data coming from different silos. Imagine the exponential increase in effort required to do this more frequently.
One of Sopheon's FMCG customers was actually losing market share due to its annual planning cycle. By the time they were done with their planning process, it was mid- to late-Q1. Their competitor was faster and beat them to market every year. This customer has now restructured and all business units are revisiting plans every 90 days, and two business units are revisiting plans monthly for the most fast-moving items. This way they “reset” monthly, and they maintain the agility to respond quickly to changes in the market. However, to do this they are dependent on reliable data and elimination of activities to find, collect, interpret and organise that data.
Enabling the automatic cross-functional discovery of actionable insights
Actionable insights are based on reliable data. Large, complex companies generate a lot of data and this is rolled up to give a view of the organisation and where it is tracking in terms of executing against the strategy. That information needs to be turned into something actionable. If insight can be generated automatically that provide direction for action to all functional groups in the organisation, this could potentially have a massive impact on company performance.
Organisations become more adaptive with Sopheon’s software
Sopheon provides enabling technology to achieve the new operational capabilities required to be successful and remain relevant in this fast-paced digital era. This includes the transformation to an interconnected enterprise, with responsive operating models and iterative process based on real-time, data-driven decision making.
Talk to Sopheon about partnering to help transform your business to stay relevant now, and in the future.