You can find part 1 of this series on the topic of business transformation by clicking here. Part 2 on key areas of business operability can be found here. Finally, click here for the last part on Serviceware as the key to solving current problems of digitization.
All of the elements explained in the previous posts - coupled with the knowledge I’ve gathered in my new position at Serviceware - compelled me to write these blog posts. There is a new wave of technology tools being developed and introduced to the market, which are starting to gain traction in the larger and more mature enterprises across the globe to help them with service analysis and revenue growth. Enterprise Service Management was a new term to me.
It describes technology tools which provide enterprises with a different view of their operations. Seeing and operating your business through another “lens” – for example a “value lens,” or a “cost optimization lens.”
Operating cost management is not just about doing the same for less but about doing more and better for less.
To summarize the main points of my own experiences and learnings on Enterprise Service Management for revenue growth, they were:
- The need to adopt a transformation mind set in today’s globalized/digital world, which is moving at pace.
- Better financial reporting, planning, and analysis tools to support the C-suite make better decisions on value-enhancing strategies. The traditional reporting (and still necessary IFRS reporting methodologies) need supplementing with new technologies to drive better efficiencies and better customer care, support, and overall customer experience. NPS should be excellent everywhere.
- Value-based views of the company’s operations will help the C-suite make much better decisions quicker.
- Cost optimization is key to ensure more investment is allocated to new things and innovation strategies.
- Current processes and services need to be analyzed, re-engineered, and changed to provide better service to internal and external users/customers of the company’s products and services at costs which reflects their value to the enterprise. This will drive revenue growth.
- Generating new business is the life blood of every organization over the long term. It needs sustained and increased investment, which should be funded by savings found in the company SG&A buckets, but only if management can take the risk of diverting funds. The need for C-suite and senior executives to have a fully “transparent value view” of how they spend the company’s money should be a must to ensure these types of risk are minimized and money can be moved from “run the business” to “ change the business.”
- Operating cost management is not just about doing the same for less but about doing more and better for less. There must be a quality gate which needs to be thought through before cost reductions are planned for. Cutting in the wrong place can have very bad consequences to the enterprises’ top and bottom lines. The need for supporting data in a form which allows wrong decisions to be avoided is paramount. This peppered with some market and customer sensitivity and knowledge and experience should help with avoiding bad decisions.
- The language of business is finance, the biggest bucket of costs and increasing focus on cost are technology investments. The CIO and the rest of the C-suite all must be on the same page here. If the CIO is purely technology-driven, he misses the opportunity of being a key contributor to the business. Adoption of a financial and business mindset is key to C-suite ambitions. Technology investments need to have a financial wrapper which demonstrates business value.
- Cash is king in every business and the opportunity to optimize cash assets is becoming much easier to realize as the world develops into the services-based economy where everything has become or will become a service. The C-suite must try to grasp this concept and develop plans to leverage this trend. The need to ensure what to own and what to outsource and its impact on cash and quality are key decisions and again need tools to assist.
- Culture and the need to have supporting tools to accelerate desirable culture change is a fundamental need in today’s fast-moving competitive world. Engagement in cost ownership and value transparency across the enterprise by everyone, backed up by change management and supporting human capital programs, are essential elements of delivering and sustaining game-changing performance.
At Serviceware we recognize that these are challenging times for CIOs and CFOs, forced to make difficult decisions to ensure business liquidity. Our consultancy team has developed a series of videos and would like to offer their help.