Disruption in any form is an ever-present challenge. But once market uncertainty, fast-evolving human behavior, and ever-shifting timelines enter the picture, businesses need to know what to do next, how to achieve it, when to act, and where to start – which is only possible with intelligent technology.
Managing volatility without deeply integrated intelligent enterprise resource planning (ERP) systems can put organizations at a tremendous disadvantage as a downturn’s effects become increasingly apparent. People across all levels of the business grow more anxious, stressed, and even afraid when the next course of action is unclear and doubtful. And while it sometimes appears to make sense to wait until all information is received before deciding, the benefits eventually outweigh the risks of delaying action.
Traditional wisdom says that moving early is critical to weathering any economic shock. But intelligence and detection is just a small part of the significant capability. Businesses must also synchronize their actions across their organizations. As McKinsey partners Kevin Laczkowski and Mihir Mysore shared in their Harvard Business Review article, digital tools and advanced analytics are equally important to assess exposure, identify mitigation initiatives, and monitor progress.
One of the worst experiences for decision-makers is the moment when they realize their forecasts are off – and not by a few percentage points. Business intelligence cannot be an afterthought; it needs to be captured, processed, analyzed, and delivered through an intelligent ERP, such as SAP S/4HANA. By taking this step, companies have the foundation they need to acquire the speed and agility necessary to differentiate themselves.
Suppose a company projected impressive revenue growth, compared to its competition’s financial performance. But once the annual books close, it quickly discovers the year ended as a significant loss, upsetting stakeholders, analysts, and the executive board.
What happened? All too often, the telltale signs are all the same business-wide. The volume of data analyzed is too massive to quickly spot issues such as incomplete information, latent data capture and processing, miscalculated formulas, and the impacts of changing market dynamics.
In times of profound change and uncertainty, there is little tolerance for such a situation. Resilient companies rely on fast access to accurate, real-time data to carefully orchestrate resources across the organization and in line with evolving business goals.
The tighter the collaboration and integration, the faster and more dynamic the business operates. More importantly, companies that know where to focus their efforts – based on a combination of accurate data and intelligence tools – are well-positioned to detect new emerging patterns and act on them before their competition.
