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You need to invest in more technology, and you may even have the money to do it. You also know you should use technology differently. But how do you know which tech investments can actually make a difference?
There’s a gap between hopes and reality: 69% of respondents in PwC’s 2024 Digital Trends in Operations Survey cited at least one reason why their operations technology investments haven’t fully delivered the expected results. And that can have ripple effects. As one respondent told us, “The business consequences of my investments in operations technology resulted in financial losses, decreased operational efficiency and the possibility of missing our opportunity for growth.” Another cited lower revenues and higher employee turnover.
Fortunately, your operations and supply chain peers also may have answers when it comes to effective tech spending. With the 2024 US elections bringing the potential for new policies and regulations that require more operational agility, consider what survey respondents told us about digital investments that did deliver the expected results.
Elevate tech implementation through these important steps
Based on what operations leaders told us in the survey, here’s where you can start improving your odds of success with digitization:
Established technologies can help deliver quick wins
Operations and supply chain officers on average said their companies are actively investing in multiple technologies. While AI and cloud-based technology top the list, less popular solutions like enterprise resource planning (ERP) enhancements and data ecosystems have still seen investment by at least one-fourth of those surveyed.
It’s also notable that when asked to cite a successful technology implementation, many respondents cited platforms that are further along the adoption curve, including cloud and ERP. In another example, while survey respondents noted that the potential of generative AI (GenAI) is immense, some cited successful investments that were more established uses of AI.
- “Our recent investment in AI-powered customer service chatbots has yielded successful outcomes. The implementation streamlined support processes, reducing response times and enhancing user satisfaction.”
- “We upgraded our cloud storage so that it could be accessed by all our internal departments and now all our data is in one place! It worked flawlessly.”
- “The ERP system allows our employees to work together more effectively, reducing repetitive tasks and data entry errors, and also improving overall productivity.”
Balancing cost-cutting and business growth
Among the top priorities of operations and supply chain leaders in the survey were reducing costs and supporting growth through market expansion and customer improvements. Those can sometimes seem at cross-purposes, which can make smart technology investments critical. Here’s how some of your peers have been successful:
- AI in demand forecasting. “The implementation of artificial intelligence in demand forecasting helped us to anticipate market trends more accurately, which has led to optimized inventory levels and improved our response to market demands.”
- Cloud-based system to streamline supply chain. “We invested in a cloud-based inventory management system that streamlined our supply chain processes. The success was attributed to real-time visibility, automated tracking and enhanced collaboration among teams.”
- Predictive analytics to optimize inventory. “Implementing predictive analytics tools for demand forecasting allowed us to optimize inventory levels. The success came from accurate predictions, reducing excess stock and minimizing shortages.”
Tech + planning + monitoring = better decisions to help unlock value in operations
We get it. You and your teams often have to execute now, and there’s rarely a spare moment to think very far ahead. Nearly two-thirds of survey respondents said they don’t have enough time for planning, which suggests that some are spending more on immediate issues rather than making thoughtful tech investments for the long term.
Identifying and organizing the right data to increase its usefulness in a complex business environment is an arduous task, but developing a broader, longer view is possible. One survey respondent said their company conducts regular technology audits “to assess the effectiveness and efficiency of existing digital tools, identify areas for improvement and ensure the technology stack is aligned with organizational goals.” Another said that “building a data warehouse that integrates multiple data sources provides an accurate view of the data and supports more complex business decisions.”
Similar to the sentiments above, don’t sleep on foundational solutions and the benefits they can provide working in concert with more advanced technologies. We’ve found that many companies don’t master those more established technologies, which can limit the impact of newer digital investments. For example, ERP’s role in helping manage such areas as inventory, orders and labor and execute such functions as procurement may not be flashy, but more advanced technologies use the data tracked by ERP to help improve decision-making. Avoid cracks and gaps in your tech foundation that could curb the effectiveness of other digital efforts.
Take the next step
These findings from the 2024 Digital Trends in Operations Survey align with those in PwC’s Reinventing Supply Chains 2030 survey, reinforcing the need for operations and supply chain leaders to be deliberate and thoughtful in their tech investments. As companies continue to navigate geopolitical crises, climate transition and other disruptors, reinventing operations through digital innovation will be essential. Even those who consider their recent technology investments a success acknowledge that transformation is complex. Taking cues from the examples above can be a big step in helping unlock more value from your operations and supply chains.
Explore the 2024 Digital Trends in Operations survey report
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