It seems like all we hear today are the effects of digital disruption on a business's operational foundation. In response, many companies are prioritising new digital products to compete in emerging markets and expand their influence into the digital age.
Yet, are we thinking about digital disruption wrong? New insight shows that many businesses should be finding ways to draw value from old processes, instead of creating whole new business segments. One way to achieve this is through cloud-based business software, which can derive value from processes already present within your organisation.
Having the right software to manage business processes is essential for an effective digital strategy.
Operational vulnerabilities and creating value
Digital disruption is comparable with gambling. Many companies focus on trying to identify (guess) which areas will be the next new start-up.
Yet, the experts at McKinsey and Company argue that instead of betting on a knife's edge, it is preferable to find the most effective way to create value from within an organisation.
Speaking to the McKinsey Podcast, company Director Martin Hirt said that people tend to talk about the likes of Google, Amazon and Tencent when they think of digital strategy.
"They're always referring to digital natives, attackers who reshape entire industries or swathes of industries, and their strategies," he said.
Yet, in most cases the strategies put in place by these digital natives are not applicable to companies already located in the market. Instead of making sweeping moves, incumbents are encouraged to assess both opportunities and threats.
Mapping processes through an ERP system
Enterprise resource planning, often shortened to ERP or ERP software, is a system that supports organisations by managing a number of key operational processes, from financial to human resources, supply chains to reporting. By investing in enterprise resource planning, and the training needed to operate it, business processes can be compiled for easy mapping and lead to swift decision-making.
With digital disruption making such an impact, organisations need to ensure their processes are reducing waste and generating additional value for both the customer and the company. An ERP can accomplish this in a number of areas.
Take for instance, a manufacturing firm is finding quality faults in their products that is leading to costly recalls and replacements. An ERP system can define each stage of the operation and allocate the optimal amount of resources for each phase. By minimising the possibility of mistakes, a company can improve work flows and maximise customer value.
If you would like to learn more about ERP systems and training for manufacturing software, it is important to talk to the experts into the field. Contact me or a representative today.
