Embracing technology to build organizational resilience
In today's fast-paced business environment, companies across all sectors understand the importance of building resilience. Technology enables organizations to achieve long-term success by equipping them with the necessary tools and resources.
By leveraging technological advancements, businesses can create effective resource management strategies and seamlessly integrate solutions to enhance competitiveness and efficiency.
Embracing technology provides organizations with opportunities to overcome challenges and achieve their objectives, ultimately leading to greater resilience and success.
In this blog, we have pulled some of the findings from the 2023 PAC Professional Services Benchmark Report that focus on organizational resilience and will delve deeper into how organizations can build resilience and the benefits they can reap. We will also examine the obstacles that impede resilience and how technology can help overcome them.
Click to read Leaving legacy behind to build business resilience (gated)
What does it mean to be resilient?
Resilience is the ability to adapt and overcome challenges, no matter how difficult or unexpected they may be. Technology plays a crucial role in achieving this. This is where cloud-based ERP (Enterprise Resource Planning), FP&A (Financial Planning and Analysis), and HCM (Human Capital Management) solutions come in, centralizing resource management, helping streamline operations, cutting costs, and improving efficiency, making organizations more agile and adaptable.
How to become more resilient
Resilience is the ability of an organization to adapt and thrive in the face of adversity and change, and it is no longer just an advantage but a necessity for survival.
- New products/services: According to the PAC report, many PSOs are taking advantage of digital channels to launch additional products and services, with financial services and management consultancies looking to harness technology to create new value-added propositions. More than half of architecture and engineering firms (56%) and 49% of financial services firms view the launch of new offerings as a primary driver for growth in 2023.
- Focus on existing customer base: More than half (57%) of the PAC report respondents stated they will invest in developing strategies that improve customer retention, which underlines the need to focus on cultivating an existing client base.
- Identify potential risks and opportunities: By analyzing potential risks, organizations can identify areas of weakness and make informed decisions about how to allocate resources to build resilience.
- Foster innovation and sustainability: Innovating and adopting sustainable practices helps organizations become more adaptable and responsive to changing conditions, identify new revenue streams, reduce costs, and create more efficient processes.
- Invest in training and development: Providing continuous training and development opportunities makes sure people are equipped with the necessary tools and knowledge to navigate any challenges.
- Build strong relationships with partners and customers: Strong relationships can help increase customer loyalty, boost revenue, and create a network of support.
- Utilize technology: Leveraging tools like cloud-based ERP solutions, AI, automation, and data analytics, improves agility, streamlines processes, and helps identify new opportunities. It can also assist in retaining existing clients - almost two-thirds (65%) of PAC respondents plan to invest more in tools that increase their understanding of clients to drive loyalty.
The benefits of being more resilient
Becoming more resilient can improve the organization's ability to weather unexpected events and challenges. Whether it's economic turmoil, a natural disaster, or a cyberattack, a resilient organization is better equipped to withstand these disruptions and keep operations running smoothly.
Resilience can foster innovation and sustainability. The ability to innovate can give organizations a competitive advantage and help them stay ahead of the curve. Resilience requires a long-term mindset and an emphasis on efficient resource management.
By demonstrating a commitment to resilience, organizations can establish themselves as trustworthy and reliable partners in the business community. Customers, employees, and investors all appreciate organizations that can navigate complex situations and maintain stability in the face of uncertainty.
The challenges
Becoming more resilient is a process that requires work and dedication. While the benefits are clear, it's important to recognize the challenges that come with building resilience.
Resource management – to build resilience, organizations need to have the necessary financial resources to invest in new technology and human resources to develop new strategies. Firms must find ways to prioritize resilience initiatives and allocate resources accordingly. Poor resource management leads to staff turnover, and the PAC report says that a fifth of PSOs are experiencing attrition rates between 11-20%. Insight Global says anything above 10% can become a major problem.
Legacy systems – many service-based organizations have outdated systems that are no longer effective. These systems can make it difficult to adapt to changing circumstances and can hamper growth. According to the PAC report, 79% of business leaders say legacy systems are holding them back.
Lack of integration – most organizations have a range of tools and solutions, but they often don’t work well together. This can make it difficult to get a clear picture of the organization's performance and can hinder decision-making. The PAC report states that 77% of business leaders say lack of integration between systems is holding them back, and 66% have limited insight into critical data.
Cultural barriers – some employees may resist change or may not be willing to adopt new technology. Addressing these barriers requires leaders to engage with all levels of the business, find champions within the organization who can help articulate the benefits of change, provide a mechanism for input and feedback for those who often feel overlooked, and treat all concerns with respect.
How technology can help
Technology has become an indispensable tool for organizations looking to become more resilient. By embracing technology, companies can leverage its power to streamline processes, enhance productivity, and unlock new growth opportunities.
Managing a business's day-to-day operations is made easier with cloud-based ERP, FP&A, and HCM software. By integrating areas such as finance, forecasting, human resources, talent management, procurement, project management, and supply chain management, organizations are provided with better visibility and streamlined processes. Enabling businesses to develop accurate forecasts, plan multiple scenarios, track performance, and make informed decisions, helps them identify opportunities for cost savings and optimize their resources.
Building an IT ecosystem using modern integrated technologies is key to bolstering organizational resilience. Modern technology provides many ways to connect disparate systems and data sources to streamline operations, reduce errors, and provide greater visibility.
What can Unit4 do for your organization?
In the 2023 PAC report, 44% of those surveyed plan to invest in their digital transformation strategy. But as all business leaders know, transformational change doesn’t just happen; it must be organized, planned, and implemented. As part of this process, firms need to consider not just what is required today but future requirements as well. Recognizing that the processes you've used in the past might not be the ones you continue to use with a new system can be a positive step when you are looking to simplify processes, reduce manual tasks, reduce errors, and boost your resilience.
Unit4’s software is designed for organizations like yours. Our comprehensive suite of solutions gives you the tools you need to strengthen resilience and drive growth.
You can check out our suite of solutions here for more information.
