What is the importance of digitally pivoting at a time of crisis? And is the switch to an OPEX model inevitable? Read on for insights from Levent Tavsanci, the Head of Applications at Oracle in Singapore.
The ongoing economic and humanitarian crisis has caught everyone off guard. The global lockdown in some of the largest economies has led to an unforeseen break in economic activity. While governments are taking cautious steps with gradual lifting of lockdowns, we are confronted with a new normal. Over the next few months, we will witness the unveiling of this new normal and its impact on businesses. However, one thing is clear, the new normal is going to be far more digital, it’s going to elevate individuals’ and corporations’ transacting models to higher levels of automation and connectivity.
The territory ahead is uncharted, so it becomes imperative for organisations to understand and develop ways to create value out of every organisational function. Expertise and acquired skills can help alleviate risks and rebuild efforts for businesses and communities alike. At the same time, the situation presents a significant opportunity for companies to: rethink and reconsider; to challenge conventional thinking; to encourage innovation and creativity. All businesses rely on the effectiveness of their Business Continuity Plan (BCP) to maintain essential functions during and after any crisis situation. If an organisation does not have one, it is time to go back to the drawing board.
Rebuilding foundations for the future
I have been talking to many of our customers over the last few months and have observed that now, more than ever, organisations are realising the need for a strong digital foundation. They are reimagining business resiliency and fine-tuning business continuity plans based on strong foundations provided by new-age digital technologies. Businesses are progressively looking to new frontiers such as cloud and artificial intelligence to ensure business continuity.
Take for instance, Beyonics, a leading global precision manufacturer, found monthly financial consolidations and reporting, manually undertaken, becoming increasingly laborious. The lack of financial and operational analytics was getting in the way of truly effective business decision making; putting the company in the position of reacting to information, rather than proacting to events, trends, and external influences, to drive the business forward continuously.
To alleviate this, Beyonics embarked on a business transformation program to adopt Oracle Cloud as a core driver in both its digital transformation and its pursuance of an Industry 4.0 operational strategy. Oracle Cloud ERP provides the organisation with real-time knowledge of its financial, operational, and competitive position at any one time, and continuously.
Gearing up for success
The current reality that organisations are facing makes it an opportune time for them to take a pragmatic view of their IT infrastructure and assess whether they have built a resilient business model that can quickly adapt to future disruptions. Switching to an OPEX model is inevitable, leading to increased usage of cloud-based services. Consumer demand for digital solutions has never been greater, however with the overall transaction volume low, the opportunity to build improved digital platforms has never been greater.
Nonetheless, before fast-tracking their digital transformation, business leaders need to take a step back and re-evaluate their roadmaps and beliefs about their underlying value and feasibility. These evaluations need to be based on current and still emerging customer behaviours, supplier dynamics, and industry regulations. According to a recent McKinsey study, digital interaction with B2B customers is now two times more important than traditional channels—more than a 30% jump since before the crisis.
In conclusion, I’d like to leave this thought – the future is unknown, but not dark. We have seen some remarkable instances of human resilience over the past few months. Amidst us are visionaries who are finding ways through data analytics and automation, to use new types and sources of data to generate value. Recovery may still be out of sight, but it will come and businesses who will be best prepared for this digital future will have the best chance for not just survival, but a brighter future.
Got a story, opinion or more information on this article? Contact us at firstname.lastname@example.org.
And get the latest updates by signing up to the W.Media Newsletter!