Have you fully pivoted to enable customers and employees to interact with your products and services in-line with their preferences? Is your business on track for recovery as customer demand returns? Do you have the real-time, streaming intelligence to monitor and respond to changes in market conditions? Are you struggling to pivot to digital channels as a result of lack of flexibility, scale or stalled transformation initiatives?
If yes, then your business may be in what we call the Modified Business as Usual pattern.
Modified Business as Usual companies need to recover at market speed
Businesses quickly rebounding after COVID-19 shutdowns need to secure their existing customer base and mature their digital and intelligence capabilities in order to return to a growth mindset. Many sectors experiencing this pattern, such as retail, banking, and media, have been actively transforming for the past several years. However, the urgency to keep pace has now been elevated.
For the technology executive in this space, the challenge is balancing the short term hits with long term investment horizons. The accelerated shift to new channel and interaction strategies designed to protect and grow the customer base has driven an explosion in new front office applications, analytics solutions, and cloud platforms—but with little thought to sustainability, supportability, cost, and integration.
KPMG firms can help quickly stabilize and position IT to move beyond the continuous volume of tactical demands, and help prioritize, organize, and drive your technology-enabled agenda.
Watch our video to learn more.
Adapting IT for normal business in the new reality
Steve Bates, Principal, KPMG in the US, Global Leader, CIO Center of Excellence, KPMG International
While no sector, company or region has been left untouched by COVID-19, for some there has been a less dramatic impact. Organizations within the Modified business as usual quadrant are seen as essential businesses, certainly suffering effects of the consumer shutdown, but will recover more quickly as consumer demand returns in similar volumes. Of course, the expansion of consumer spending will largely depend on employment levels.
Modified business as usual firms have seen shifts in how customers want to interact with their products and services and as a result will need to accelerate their digital transformation. The good news is that many sectors that are commonly in this space, like banking and consumer goods, have been aggressive in their transformation agendas as competitors all become increasingly digital. It is imperative to accelerate digitization to differentiate and keep pace to preserve and grow market share.
For the technology executive in this space, the challenge is balancing the short-term hits with long term investment horizons. The accelerated shift to new channel and interaction strategies designed to protect and grow the customer base has driven an explosion in new front office applications, analytics solutions, and cloud platforms—but with little thought to sustainability, supportability, cost and integration.
In the new reality, Modified business as usual firms need to understand changing consumer preferences and employee behavior patterns, expectations and requirements. However, in such uncertain times, analyzing historical trends based on internal datasets alone will not suffice. While IT’s role in enabling these insights span both the data and technology layer, many organizations lack the breadth of skills and access to broader external data to respond quickly enough to keep pace with the business needs.
The KPMG Signals Repository, part of our AI portfolio, provides a vast landscape of tools, such as machine learning and natural language processing to accelerate, automate and augment decisions that drive growth and profitability. Leveraging the latest decision science, the Signals Repository continuously harvests a broad variety of signals from public and private sources to help organizations get the edge in their decision-making. CIOs and Chief Data Officers can now deliver unparalleled business-centric insights on scenarios like office opening strategies, site selection and rationalization, employee retention, customer acquisition, and demand shifts. Leveraging KPMG Signals Repository, it’s easy to “listen” to the tens of thousands of signals and then use machine learning to make sense of it all.
While Modified business as usual companies accelerate their digital transformation, many IT functions are struggling to update and scale their delivery and operations. To be responsive to adjusted consumer expectations and run at market speed, IT and the business needs to mature much faster than in the past.
If COVID-19 has taught us anything, it is clear that we will live in a much more highly connected world. Even companies that are seen as daily essentials will need to continuously adjust to meet new employee and customer demands. KPMG firms know what levers need to be pulled to help support both IT and the business. Interested in exploring how your organization can succeed in today’s new reality? Let’s talk.
Benefits of IT transformation for Modified Business as Usual organizations
Becoming world-class at “ruthless prioritization” and moving beyond incremental change, companies in this pattern should balance cost optimization, application modernization and cloud adoption with investments in automation, modern architecture, and new ways of working to drive business performance. The potential benefits are many:
- a streamlined portfolio of products and services that run at market speed
- reduced complexity of the IT estate through cloud-first and digitally native architecture
- transparency into the pipeline of ideas and demand, as well as visibility and control over the levers of cost, quality, and consumption
- improved quality, customer experience, and agility produced by scaling modern delivery capabilities
- enhanced insights using a comprehensive network of internal and external data sets.