Increasing Profitability and Productivity with IT
Featuring Gartner Insight
C-level executives must continually seek to streamline Product Lifecycle Management activities to increase company profits by reducing operating costs and accelerating speed to market.
For example, R&D could significantly reduce their projected timeline with better visibility and easier collaboration with Regulatory Affairs. The product line would still adhere to the same compliance legislation, but the difference would be seen in better processes and accessibility.
These changes would also increase profitability by owning a greater share of the market place with a “jump on the competition.”
Gartner states, “Flipping from “legacy first” to “digital first” also entails flipping from IT efficiency to value creation. Value is not mainly created by reducing the cost of IT per dollar of revenue, but by increasing revenue per dollar of IT cost (see figure below).”
Source: Gartner “The Global Perspectives on Flipping to Digital Leadership: 2015 CIO Agenda" by Dave Aron, Poh-Ling Lee, Partha Iyengar, January 2015
Not only should they be able to match the technology, but they must analyze current methodology and map out current capabilities against best practice processes.
The following steps outline the best overall steps to begin increasing both functionality and profitability through IT.
4 Steps to Increase Profitability Through IT
1. Usability/User Adoption
Minimize disruption to daily activities and processes, while improving capabilities. This will require designated SBME (Subject Business Matter Experts) that can clearly define a comprehensive list of both objectives (what they want to accomplish) and requirements (how they will accomplish it).
"Elegant" solutions cannot provide all solutions to all users. Instead of looking for 1 universal solution, seek out the solution that addresses the most needs for each group. This may relate to multiple systems. In this matter, you must look for systems that do not necessarily come "in the same box," but can synchronize the data effectively.
3. Data Management
The partner step to synchronization, IT must coordinate the data flow. This not only entails cleaning the current database, but defining processes to ensure the data is harmonized, visible to designated team members, and becomes effectively indexed and archived for future easy retrieval.
The 3 previous steps addressed the initial processes, but the last step continues to evaluate the overall productivity levels for each department. This will not necessarily relate into easily definable benchmarks or metrics, but should be evaluated for defined time periods. Easier questions to ask are resource hours, duplication in data/efforts, time-to-market, product success rates, recall stats, and manufacturing timeframes.
 Source: Gartner “The Global Perspectives on Flipping to Digital Leadership: 2015 CIO Agenda" by Dave Aron, Poh-Ling Lee, Partha Iyengar, January 2015