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Digital Transformation

Peddling mass-market consumer brands was the norm for about a century where everyone wanted to associate with a few ‘right’ brands such as jeans from Gap or coffee from Starbucks. But now the change has reversed to increased personalization at scale. This is known as mass customization. Some companies leading this urge are the likes of Stitch Fix which is into personal styling and Space ways, which is a 3D printing service. The advantage that owning scale used to bring earlier is now being seen as a liability because it unnecessarily increases fixed costs. This is a reason for Gillette’s market share getting disrupted by the nimble-footed startup- the Dollar Shave Club. All this is now possible because of the enormous quantities of data warehousing now being done which gets further processes using AI capabilities. The specific data and user intelligence that emerges is then used by consumer-facing brands for their digital marketing efforts as they can now provide a more personalized service.

Source:https://www.strategy-business.com/blog/Bigger-Is-No-Longer-Better-When-It-Comes-to-Consumer-Brands?gko=0e1b7&sf196654240=1

Uploaded Date:15 September 2018

A lot of companies are still getting their digital strategy wrong. Digital is not about using some flashy app to attract new customers or to simply shed costs. It is multi-faceted and leads to a change in the mindset. Investing in digital also means a likewise shift in the talent management approaches. Legacy companies need to tighten up the positive values they already have, while forging ahead with newer capabilities. A complete revamp is needed around four aspects which are- customer engagement, value chain operations, organizational structure and the corporate strategy. Amazon is an example of a company that has perfected its position in each of these four ways. A lot of companies or industries have even started despairing under the false belief that digitization is not for them. But in truth for every business and each branch, digital has something in store.

Source:https://hbr.org/ideacast/2018/08/understanding-digital-strategy?utm_medium=email&utm_source=newsletter_daily&utm_campaign=dailyalert_activesubs&utm_content=signinnudge&referral=00563&deliveryName=DM13129

Uploaded Date:15 September 2018

There exists a trend for simply opting for a new digital finance tool, but not adopting older, more successful ones. This is harmful to businesses as some digital finance tools have already delivered much success. One such technology to have tasted success is Robotic Process Automation (RPA). It automates financial processes such as monthly financial closure or reconciling cash accounts. In a study conducted by management consulting giant Bain, it was understood that a staggering 55% of those surveyed aren’t yet using online invoice approval systems or optical character recognition tools. About two-thirds of these laggards though are expected to adopt them over the next two years. Another 43% are not yet using customer self-service portals or e-invoicing. More than two-thirds are bereft of any tax classification tool. The corresponding figure for electronic work papers remains a mere third of the total. Increasingly those not adopting are expected to do so in the next two years.

Source:https://www.bain.com/insights/youre-still-not-using-these-digital-finance-tools-snapchart/

Uploaded Date:13 September 2018

Thanks to digital disruption and increasing business complexity, activist investors are pressurizing the finance teams at various organizations to revamp their processes. This rejigged system will have greater scope for utilizing the now easily available digital tools. These tools will be based for functions such as artificial intelligence and business analytics. Bain and Company conducted a study titled “What CFOs say?” to understand the key gap areas. What emerged was that most CFOs craved more time to work on planning and then implementing a sound corporate strategy. Three key challenges came to the surface. The first of them is knowing the areas where one needed to excel, while also separating the non-priority areas. The next challenge is to understand where does one stand at present. Once this is done, the last challenge is to close this gap identified.

Source:https://www.bain.com/insights/when-the-finance-department-becomes-a-companys-secret-weapon-brief/

Uploaded Date:04 September 2018

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