Being smart: how are you increasing efficiency to become a world-class competitor?

In the current challenging economic climate the pressures to reduce costs are only going to increase. Being smart offers new opportunities to deliver efficiencies; however, maximising the value of being smart goes beyond traditional cost reduction, outsourcing or shareholder value management programmes.

These approaches have important roles to play but the starting point for building a smart organisation is to harness the full range of data already available in an organisation. By really understanding the information captured from customers and products, and not being overwhelmed by the volume, organisations can review, challenge and rethink their entire delivery model. That, in turn, will highlight the potential for efficiency savings.

In the energy sector, the data gathered from smart grids will allow energy companies to deliver efficiencies by being able to monitor usage remotely. They will also be better able to manage peak demand and respond more quickly to outages. Looking further ahead, the data provided by smart meters will allow providers to explore differential pricing models that reflect the true demand for electricity at any given point.

Similar benefits can be seen in the technology sector where deployment of sensors will enable IT companies to closely monitor infrastructure performance. This can then reduce the risk of disruption, improve the customer experience and minimise environmental impacts, all of which should improve the efficiency of the operation. 

For clothing retailers, the smart world offers a way of improving distribution and stock management. The widespread deployment of RFID technology will allow organisations to better manage their supply chains, ensuring that the right size and colour of clothing is on the right shelves when needed by customers. This kind of technology has already been adopted by Walmart and has meant that out-of-stock items that are RFID tagged are replenished three times faster than before. Supermarkets are also looking at how perishable goods can be tagged so they can see just how long produce has been in transit and can ensure that it is sold at the right time, reducing the amount that has to be thrown away.

The key to securing efficiencies is to understand the benefits do not simply come from the application of more technology. The real benefits come from a better understanding of what is truly valuable to customers and how they use a product and service. Having gained this sophisticated understanding, it is then possible to manage the delivery of the service or product more efficiently. The technology is the driver but the real value comes from the way it enables a company to understand its customers better and build efficiencies into a much broader business strategy. 

To find out how your organisation can become a world-class competitor or to speak to a smart expert, please contact us now.