In 2019, major consulting firms such as McKinsey and KPMG claimed that the risk of failure in digital transformation ranged from 70 to 95 percent. This was three years after Forbes had estimated the risk to be 84%, implying that not much had changed in those three years, despite the fact that the 2010s were the age of Industry 4.0. While the industry as a whole continued to march instinctively forward, investing one after the other in digitization, experts were busy trying to figure out why, if digital transformation is the answer, is it failing?
While technology was evolving more quickly than ever, executives and decision-makers who were implementing digitization frequently struggled to create precise roadmaps. A lot of this stemmed from the lack of clarity about the role of new technology in their operations and the various ways in which it would integrate with existing systems. Before you invest in any software, you need to be clear about how the platform will function in your business environment, and how it will collaborate with your tech stack. Shortsightedness here can be devastating to even multinational corporations. This was demonstrated in the infamous MillerCoors-HCL case, where improper planning for software implementation cost millions of dollars.
In 2023, for every business task or process, there are countless automation options available. Even shortlisting, let alone finalizing, becomes a taxing process, particularly for decision-makers in non-IT industries who are unable to precisely visualize an integrated environment. This has resulted in hesitance among business owners and senior management to digitize their manual operations. In this post, we'll outline the role of operations management systems in your business and tips for choosing the right software for your specific technology stack.
So what do Operation Management Systems bring to your technology stack?
Generally, operations management software is a tool that helps streamline and optimize an organization's day-to-day operations by providing visibility, automation, and data insights. Operations management software can fit into a technology stack in various ways depending on the organization's needs and goals.
Integration with Existing Systems
Today, software�s open APIs enable the creation of free-flowing integrated environments that maximize the value of the existing technology stack and enable smooth communication between them.
This maintains the accuracy and timeliness of data, streamlines workflows, and eliminates duplication of efforts. Your CRMs, ERPs, or HR systems, can exchange data seamlessly with frontline operations in real time.
Cloud-based Deployment
Most operations management systems are cloud-based which means they can be deployed and accessed from anywhere with an internet connection, allowing teams to manage operations remotely and collaborate across different locations. This enables real-time progress tracking, improves operational efficiency, and helps teams respond to issues quickly.
Cloud-based deployment allows for easy updates and maintenance of the software, and data backup and recovery. In addition, it also provides the flexibility and scalability required by businesses of any size, without the need for any on-premises hardware.
Workflow Automation
Automating routine tasks and notifications, digitizing progress tracking, and reducing manual efforts in day-to-day processes are one of the best ways to unlock your business�s true potential. This frees up time and enables team members to focus on more strategic activities.
Workflow automation can also reduce errors and delays, and enable faster task completion. It also provides an audit trail for each task, making it easy to track its progress and identify any issues.
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83% of IT leaders believe workflow automation is necessary for digital transformation.
Data Analysis and Reporting
With most ops management platforms you don�t have to rely on alternative applications for data analysis, as they provide you with performance metrics, trends, and areas of improvement readily. This data can be used to generate reports and dashboards for informed decision-making.
Reports can be completely customized to track specific business objectives, enabling executives to make data-driven decisions. Reports can also be shared with stakeholders, providing transparency and visibility into operations.
Mobile Access
Operations management software's mobile apps set up a connected worker environment, enabling frontline workers to collect data from anywhere anytime. This provides end-to-end real-time visibility across the supply chain.
Mobile apps also upgrade usability with features like barcode scanning, GPS tracking, and image capture, making it easier to track operations with maximum accuracy. This real-time data capture and analysis increase operational efficiency and effectiveness. With mobile access, teams can collaborate, communicate more effectively, and respond to issues quickly.
How can you integrate it?
Imagine a manufacturing company that wants to install a solution to manage its quality control, inventory management, and production scheduling. Besides this, the company already makes use of an accounting system, an Enterprise Resource Planning (ERP) system, and a Customer Relationship Management (CRM) system. With these systems, the following integrations could be set up:
CRM Integration
With the operations management integration, customer service representatives have complete transparency into order and inventory status, along with automated alerts that could notify the operations teams about customer issues. This integration could involve the following data exchanges:
- Customer Information: Retrieving customer information from the CRM system, such as customer names, contact information, and order history, to inform production scheduling and inventory management decisions.
- Order Status Updates: Send order status updates to the CRM system, such as when an order is scheduled for production, completed, or shipped. This can provide greater visibility to customer service representatives, enabling them to provide accurate information to customers.
As a result of this, CRM executives have been able to give customers accurate and timely updates, increasing overall customer satisfaction and brand loyalty.
ERP integration
The operations management software's API could also be connected to the ERP system's API to enable data exchange between the two systems. This integration could involve the following data exchanges:
- Resource Availability: The operations management software could retrieve resource availability information from the ERP system, such as machine and labor availability, to inform production scheduling decisions.
- Production Status Updates: The operations management software could send production status updates to the ERP system, such as when a production order is scheduled, in progress, or completed. This can provide greater visibility into resource utilization and enable more accurate resource planning.
Accounting Integration
When integrated with daily operations, accounting systems can turn quicker and error-free, with automated invoice generation and efficient payment processing leading the way.
- Invoice Generation: Procurement or sales teams can instantly send invoice data to the accounting system, such as order and pricing information, to enable automatic invoice generation.
- Payment Status Updates: The accounting system could send payment status updates to the operations management software, such as when an invoice is paid or overdue, to inform inventory management decisions and enable accurate financial reporting.
Besides ensuring accurate financial reporting, this can cut down on the time and effort needed for manual data entry, approvals and authorizations, and data access for frequent audits.
How do you choose the right fit?
We've gone through all the different ways in which an ops management platform combines with different areas of your business. Businesses need to strongly consider the human aspect. Now, let's look into how you can set it up. How do you find the ideal solution that works smoothly with your tech stack and workflows, and is simple for your staff to adopt?
- Defining Requirements: Start by defining the features and functionalities you need to manage your operations effectively. Consider your current pain points and areas for improvement, as well as any future needs as your business grows.
- Research Vendors: Conduct thorough research to find vendors who provide the solution or service that meets your needs. Look for software providers with a history of integrations in particular, and evaluate customer satisfaction by reading reviews and testimonials.
- Request demos and trials: Request demos and trials from the potential vendors to get a firsthand look at their platform and how it works with your existing systems. This will enable you to test the user interface, features, and functionalities, as well as the ease of use and learning curve.
- Check Support and Training: To ensure that your team can easily utilize the platform and integrate it with your existing systems, make sure the vendor offers adequate support. Besides responsive customer support, look for vendors who provide thorough documentation, training materials, and support resources.
- Compare Pricing and ROI: Look for platforms that offer competitive pricing and a good ROI, taking into account the cost savings, increased efficiency, and other benefits that the platform can deliver.
A lot of companies still rely on manual systems for their essential processes, in fact, according to a report, only 21% believe they have finished the digitization of their operations. The reasons are numerous, but the companies that have focused on driving innovation along with successful change management have seen 143% of ROI on average. With end-to-end workflow digitization, they were able to achieve a 36% faster time-to-market along with significant cost savings. By figuring out the right operations software, and thoroughly integrating it with their existing tech stack and workforce, organizations can achieve seamless change management initiatives toward automating their entire value chain. As a result, they can set up a data-driven decision-making culture, shortening lead times, and response times to shifting customer demands and operational hazards.
