Forward-looking organizations are reaching the inflection point from doing digital to being digital by taking smart initiatives and leading changes progressively.
From the management perspective, it’s important to build an information-savvy environment with established business principles and strong disciplines, develop a differentiated set of business capabilities for enabling strategy implementation; enforce GRC, initiate the best and next practices to improve people centricity, optimize cost, increase business agility and maturity.
Capability development: Business capability provides differentiation and the ability to do things and finish tasks in a consistent manner and implement a strategy effectively. Capability necessities keep the lights on; capability differentiators build organizational unique strength. After forming strategy alternatives, you design the capability and estimate cost for each alternative. Some capability can be built in house, some need to be acquired. Some are linear, some are integral; some are static; some are dynamic; etc, Hence, you don’t need always to reinvent the wheel, it’s crucial to invest in the best of breed capability with suitability, coherence, improve capability maturity based on enterprise strengths, and integrate them into differentiated competency with shortened development cycle to expedite business strategy execution.
Cost Structure optimization: Many organizations have little insight into their cost structures and who is consuming the assets; where they are spending their money and often assume it is mainly being spent on items which are actually much lower on the list. The challenge for management is to have visibility and traceability between costs and the assets consuming those costs. The company has a limited budget and resources. The cost breakdown provides insight into where the most budget is being spent, which in turn identifies opportunities for bottom line improvements. Effective cost management means understanding every island of core operation and every critical workflow process smoothly. It’s important to leverage effective tools to continue trimming costs,, reduce the total cost of ownership, and ultimately improve bottom-line organizational efficiency.
People-centricity: Traditional organizations are process-driven, but digital organizations are people-centric. Running a digital organization is to connect the old and new, mix solid and fluid to foster innovation, fine-tune lightweight business processes that allow information and idea flow cross-functionally, and turn into business value in a tangible way. One of the key determinants of whether an organization can move to new digital structures is the development level of the people, how they can harness cross-functional communication and mass collaboration, to improve people-centricity by knitting all necessary elements together into great customer or employee experiences. High-mature people-centric organizations are not the sum of functional pieces, but an integral whole.
Revenue improvement: The true business value is often multifaceted; it is usually created at the intersection of multiple management disciplines. with feedback mechanisms and willingness to work on revenue-enhancement initiatives. Business leaders can help organizations improve net, by reducing cost of doing business through various means such as right sourcing & sizing, keeping business cost flat when the business revenue increases. Make sure the executive team first understands what it needs to drive future business growth and revenue growth. Improving revenue alone without improving net; only grasping quick-win but ignoring long run business competency is short-sighted as insightful stakeholders will be more interested to see how much net generated from the business and what kind of value business can generate for short, intermediate, and long term.
GRC enhancement: In many organizations that get stuck at the lower level of maturity, there are gaps existing in capability development because there are no governance processes to handle risks or uncertainty. There is no common set of rules to improve business effectiveness. With strong GRC guidelines, authorities, disciplines, roles and responsibilities and clearly defined processes are in place to improve organizational transparency, lubricate corporate relationships, and improve business effectiveness and maturity.
Technically, governance, risk, and compliance are not a single process, but a collection of processes help management perform risk analysis, harness connectivity, raise visibility and awareness for many things that are captured at the different levels of the organization to operate a hyper-connected and interdependent business. Technology should be one of the many factors when considering a GRC solution. Always go back to that old chestnut of "people, process, and technology" to address business issues and it works in the GRC world as well.
Forward-looking organizations are reaching the inflection point from doing digital to being digital by taking smart initiatives and leading changes progressively. Those organizations that have a more mature strategic alignment, business competency, and GRC approach outperform their competitors and tend to be more responsive to the business dynamic for lifting organizational effectiveness and maturity.
Capability development: Business capability provides differentiation and the ability to do things and finish tasks in a consistent manner and implement a strategy effectively. Capability necessities keep the lights on; capability differentiators build organizational unique strength. After forming strategy alternatives, you design the capability and estimate cost for each alternative. Some capability can be built in house, some need to be acquired. Some are linear, some are integral; some are static; some are dynamic; etc, Hence, you don’t need always to reinvent the wheel, it’s crucial to invest in the best of breed capability with suitability, coherence, improve capability maturity based on enterprise strengths, and integrate them into differentiated competency with shortened development cycle to expedite business strategy execution.
Cost Structure optimization: Many organizations have little insight into their cost structures and who is consuming the assets; where they are spending their money and often assume it is mainly being spent on items which are actually much lower on the list. The challenge for management is to have visibility and traceability between costs and the assets consuming those costs. The company has a limited budget and resources. The cost breakdown provides insight into where the most budget is being spent, which in turn identifies opportunities for bottom line improvements. Effective cost management means understanding every island of core operation and every critical workflow process smoothly. It’s important to leverage effective tools to continue trimming costs,, reduce the total cost of ownership, and ultimately improve bottom-line organizational efficiency.
People-centricity: Traditional organizations are process-driven, but digital organizations are people-centric. Running a digital organization is to connect the old and new, mix solid and fluid to foster innovation, fine-tune lightweight business processes that allow information and idea flow cross-functionally, and turn into business value in a tangible way. One of the key determinants of whether an organization can move to new digital structures is the development level of the people, how they can harness cross-functional communication and mass collaboration, to improve people-centricity by knitting all necessary elements together into great customer or employee experiences. High-mature people-centric organizations are not the sum of functional pieces, but an integral whole.
GRC enhancement: In many organizations that get stuck at the lower level of maturity, there are gaps existing in capability development because there are no governance processes to handle risks or uncertainty. There is no common set of rules to improve business effectiveness. With strong GRC guidelines, authorities, disciplines, roles and responsibilities and clearly defined processes are in place to improve organizational transparency, lubricate corporate relationships, and improve business effectiveness and maturity.
Technically, governance, risk, and compliance are not a single process, but a collection of processes help management perform risk analysis, harness connectivity, raise visibility and awareness for many things that are captured at the different levels of the organization to operate a hyper-connected and interdependent business. Technology should be one of the many factors when considering a GRC solution. Always go back to that old chestnut of "people, process, and technology" to address business issues and it works in the GRC world as well.
Forward-looking organizations are reaching the inflection point from doing digital to being digital by taking smart initiatives and leading changes progressively. Those organizations that have a more mature strategic alignment, business competency, and GRC approach outperform their competitors and tend to be more responsive to the business dynamic for lifting organizational effectiveness and maturity.
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