What's driving today's top CEOs in Manufacturing?
The focus back in the 2008 market downturn was, in essence, to "keep the lights on" and "control costs". As we emerged from that, the focus shifted to GROWTH. This subsequent shift is one of the primary drivers forcing CEOs to rethink their business models.
"Grow Grow Grow"
Best run businesses are using advanced workforce analytics to identify top talent - internally and externally. They are tying performance metrics to working capital and training to manage their talent in more profitable ways; and they are making sure they are retaining the top talent they have identified. They identify critical staffing skill gaps that can be used for recruiting as well as future focused training. Best run businesses are using workforce analytical insights to understand workforce trends, monitor the latest social recruiting efforts, grade top talent in recruiting execution and maximize workforce performance world wide to easily identify tomorrows' leaders and profitably meet expansion needs.
Sustainable, Profitable Growth
As manufacturing companies turn their attention to growth, the most successful are doing it profitably. They are focused on sustaining the massive efficiency improvements they created in the downturn so as to avoid achieving growth at the expense of margin. For these companies, this means a continued focus on:
If you really think about it, the market, no the world, is a much different place than 2008. Devices, not just personal, have continue to expand. The amount of data (device and human generated) has continued to expand exponentially. In turn, this has dramatically expanded the points where information can be accessed and important business decisions made. This provides a unique opportunity to rethink the business model based on out innovating the competition. Best run businesses are efficiently identifying new innovative solutions that define new forms of revenue which in turn drives true growth.
Companies that are focused on the bold items above are not only generating a lot more information - aka Big Data - they are effectively leveraging that information to drive competitive differentiation, disruptive innovation and growth. To do this profitably, successful companies are moving from being Reactive (ie. scrambling and expediting) to being Proactive (ie leveraging data to predict outcomes before they happen, replacing inventory with information). Best in class companies are embracing data-driven-decision-making.
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About the Author
(2014) Patrick Maroney (linkedin) is part of the SAP Global Hana Platform Center of Excellence. In this role, he works closely with SAP customers to help understand the impacts of business trends on their processes and the use of technology in order to help architect business improvements. Patrick has a background in industrial engineering and business transformation consulting. Since 1992, Patrick has been working with the management teams of leading companies on improving their processes and leading business transformation initiatives.
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