EDITOR ’ S QUESTION
The COVID-19 pandemic has had a significant impact on the global economy , affecting industries and businesses of all sizes . Nick Mitchell , VP and Country Manager UK & I at Celonis , said : “ Many organisations have been forced to rapidly adapt their working practices , with two years ’ worth of Digital Transformation in two months .
“ Businesses have had to adopt an in-depth approach to collecting , analysing and redeploying the mountains of data generated . Those who have been agile and were able to direct their efforts in the most effective ways are the ones who are positioned to succeed .”
He explained that how , over the past year , we have seen how technologies such as AI and Machine Learning can help businesses understand and plan for multiple scenarios , calculating the risk and reward of each one and automatically recommending the best action .
“ They can also continuously learn how to help organisations maximise their business outcomes . Understanding exactly how each process works is key , as well as where variations and inefficiencies arise . Technologies such as process mining have seen an uptick in adoption during this period : driving continuous optimisation of business operations through process-reengineering and integration ,” he added .
And businesses have also had to pivot quickly from investing in innovation to prioritising cash preservation , both by preventing unnecessary cash leakage and mitigating payment risk .
“ This helped provide a strong buffer against prolonged economic difficulties . Research released by Celonis this year found that significant execution gaps in core business functions are costing companies hundreds of millions of pounds in missed opportunities . For example , it costs the average company US $ 15 (£ 10.60 ) to process a single purchase order – more than ten times the cost for top performing businesses , which have reduced this to just US $ 1.35 ( 70p ).
“ Scale this up by the thousands – if not hundreds of thousands – of purchase orders a company will process each year , and this could be costing millions ,” Mitchell said .
He said that fragile just-in-time supply chains have come under increasing pressure , adding : “ With rapid globalisation , the flows of materials in a supply chain are increasingly complex . A supply chain isn ’ t only a network between a company and its suppliers to produce goods , but spans from buying , making and moving , to storing and selling .
“ At the same time , raw materials and products travel across numerous geographical locations and pass through multiple links in the chain . This coincides with a growing demand for e-commerce and high customer expectations . As supply chains become more complex , companies discover that existing processes and technology are not flexible enough for this new business environment – as can be seen from supermarkets struggling with stockpiling customers , to the Suez Canal blockage earlier this year . Sophisticated supply chain technology that can account for sudden changes and suggested viable alternatives is critical to managing today ’ s challenges .
“ As the UK continues to move out of lockdown , businesses must continue shoring up their internal systems to be agile and resilient , particularly with the future ways of working still so uncertain . As we have seen over the past year , those businesses that adapted swiftly to maximise their execution capacity will be best positioned to successfully navigate future eventualities and remain buoyant .”
What have you learned in business during a year of a global pandemic ?
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