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| Strategic operations is not an oxymoron in the NOW! environment |
Mike Whitchurch, Professional Services Director/Martin Gaines, Director Technology Transformation
Virtually every market segment in the UK economy has strived for years to remove cost from their supply chain whether driven by regulatory and competitive pressures, or good old fashioned profit maximisation motives. Whereas operational excellence has focussed on customer satisfaction, in essence this is judged by how well and efficiently the services are both perceived by and delivered to your customer.
Just one example, Independent Financial Advisors (IFAs) want to communicate with their customers more frequently, (doing what it says on the can). They want to improve their level of service, right across their customer base, rather than just to the few highest value clients.
IFA’s, like all of us know that increased client engagement generates more cross and up-selling opportunities, as well as being vital to retaining it.
Most IFA’s struggle with the time and costs of reviewing client’s assets annually, let alone at quarterly or less. Many recognise though that the client wants live information, securely accessible when they want to see it.
A number of the largest Financial Services product providers have now automated access to their valuation information but this still accounts for less than 20% of all such requests, industry analysts believe this figure may never rise above 70%, (difficult to believe given the NOW! attitude of the upcoming generation). These now challenge the loyalty of clients of the slower to act.
Developments in this arena indicate how operational improvements can play a major strategic role in the growth of any organisation in any market sector.
The introduction of technology is removing many of the manual processes involved. The use of secure extranets provides portals for key players. This not only removes steps out of the supply chain, but has started to vastly improve the quality of the data and information exchanged. Whilst ultimately removing cost and improving efficiency these developments, on their own, are not sufficient.
Many organisations have now started to provide technology to their suppliers and customers; establishing this provision of technology as a differentiator. The concept of self servicing is increasingly common practice and crosses into many areas in the business to consumer context. Deployed appropriately in the business to business arena the same thinking can not only improve operational performance but also cement an organisations longer term relationship with key players in their supply chain.
Moving elements of the operation from outside into the heart of their suppliers or customers obviously removes the core cost and in some areas, risk, from an organisation. It also enables the speeding up of all transactions and the certainty of that transaction.
Supporting this move by the provision and deployment of secure, tailored technology truly embeds their role within both customers and suppliers. What better way to make it more difficult for your competition to gain advantage, not just when the products in question are a commodity in nature, but also recognising the current expectations of “stock turn” or “Just in Time” the latter of which can be more than ever perceived as – “I want it - NOW!”
The challenge is therefore to understand not just your operations but also those of your customers and suppliers from a strategic perspective. Which elements can be extended out of your organisation into the key players in your supply chain?
The thinking behind and provision of technology designed to allow access to “information”, whether it be valuations or stock availability, the ability to “trade” whether it be to sell part of your portfolio or to order components knowing with certainty that you are doing it NOW! in a secure and absolutely efficient manner is bound to enable improved competitive advantage and cement longer term relationships.
So the business challenge is there – how can the use of appropriate technology grow and secure your business as we enter the NOW! Generation? |
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