Whilst we can’t predict the future, it is always important that organisations are prepared for and can successfully position themselves through an economic downturn. For those businesses that can adapt and flex to weather the storm, there is also an opportunity to gain a competitive advantage.
In the last two years, we have all faced unprecedented challenges. Those organisations that were resilient and able to pivot embarked on a digital transformation journey to overcome the barriers to a de-centralised and remote workforce.
It has been widely discussed that we are set to see a global recession in 2023 that could leave UK businesses facing huge uncertainty and challenges. It’s no surprise that the healthier a business, the less likely the need to be super-reactive to get through short-term challenges. Businesses with balance sheets that are not heavily leveraged will be better placed to take a long-term view and weigh up the return on investment (ROI) and the total cost of ownership (TCO) over their capacity to invest.
With this in mind, as we begin to enter the familiar financial territory of 2008, businesses need to look at what has historically worked. To be best positioned for any downturn, one area to focus is digital transformation.
In the Deltek 2022 Clarity Architecture and Engineering study, 85% of UK Architecture and Engineering businesses highlighted that investing in technology to improve operations will help their firm win more business, with 55% stating that they are losing, or will lose market share within two years if they fail to make progress in this area. The best examples of resilient companies are those that have continued to invest in technology, benefitting from the increase in productivity, capacity, and ability to be more agile to economic waves.
The Digital Evolution
Firms recognise and value the importance of digital technology within innovative project-based businesses. However, undertaking the digital evolution can feel like no small feat and many companies, faced with obstacles and roadblocks, have not been able to dedicate the time or resources to evolve. Because of this latency, crucial business insights are not being harnessed, restricting productivity and preventing the discovery of opportunities for potential growth.
During times of uncertainty, tapping into un-harnessed productivity, insights, and new growth channels offers a huge opportunity for companies facing tough decisions on a regular basis. Gartner reports that 66% of CFOs are planning on increasing investment in digital technology in the next 12 months, whilst 32% say they will maintain spending. Businesses that continue to invest and prioritise their digital strategy will outperform their competitors, whilst improving customer and employee experience. With the battle of increasing inflation, it will also reduce the cost of doing business.
Transforming projects translates to enhanced performance
On a more positive note, a recession can offer businesses the chance to prioritise productivity. Organisations that are flexible and manage their time through enhanced project and time management will increase capacity, without increasing costs. Inefficiencies cost businesses time and money.
When business leaders are not proactively resource planning and identifying productivity gains, optimising cash flow is near impossible. By working smarter and leveraging technology, businesses can improve oversight of operations and withstand the economic turbulence ahead.
From artificial intelligence streamlining analysis and decision-making, to cloud solutions enabling companies to stay ahead of customer needs, the key to success in digital project-transformation is identifying where technology can enable growth.
Unlock productivity without increasing capacity
As more businesses pitch for less work, maintaining a competitive edge will be essential to growth. Investing in digital project-management capabilities can empower teams with the best technology to unlock productivity capacity.
Productivity starts with planning – Planning starts with accurate resourcing, which is the foundation of any project-based business. This foundation can then be built on and tailored to enable greater business productivity. It is the essential first step in the journey to enhanced productivity.
Separating from the spreadsheet – Spreadsheets have their shortcomings, with manual data input being one of the biggest. To establish a solid understanding of their current position, companies need to be able to access a deeper, more comprehensive understanding of who is available, which projects are up next, and insights from previous resource plans to make data driven decisions.
The right people get the right results – Deltek’s Clarity report found that two of the main opportunities business leaders identified as areas for growth for the year ahead were: investing more in IT infrastructure (40%) and investing more in technology innovation (35%). These tech investments give employees optimal user experience that will allow closer collaboration, enriching their jobs as well as their connection to the organisations purpose. The workforce is changing, and employers need to keep up to remain competitive.
The key to improving productivity is technology – and the right technology that aligns to business needs. As margins continue to become tighter, such investments will show organisations where action is needed to revolutionise productivity and build capabilities that maximise the potential for resilience and flexibility.
Enterprise software is now non-negotiable. When embraced, Enterprise Resource Planning (ERP) can enable superior levels of project intelligence, digital transformation, and collaboration. Companies who continue to invest in and leverage digital solutions are better placed to make more effective business decisions and stay calibrated through a downturn.
