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22 October 2019

Transformation – how to make the best of it?

You can forget about the digital transformation, but it will certainly not forget about us. Customers are constantly looking for higher quality services. At the same time competition seeks possibilities to cut costs and increase efficiency. Professional services industry does not differ in this respect from the others. The key question is how to perform the digital transformation so that the transition from traditional to digital service organization would be fast and produce desired results.

The boundaries between the analogue and digital world are becoming more fluid and new information and communication technologies open previously unimaginable possibilities to provide customers greater value. Digitalisation means not only new services but also new models of delivering them. However, it is not free from threats and many companies with professional services are not well prepared to challenge digital transformation. This was confirmed by Insight to Action report: The Future of the Professional Services Industry* prepared by Deltek which shows that 81% of senior managers are not ready for the risk arising from the implementation of the breakthrough technology.

So how should professional services industry be prepared for digital transformation? They have to particularly focus on foundations. The implementation of CRM and ERP integrated systems helps to generate more sales leads and facilitates better resource management. As the number of profits shrinks and their costs rise, competent, based on current information, assessment of the situation becomes crucial. The survey conducted by Deltek shows that even 58% of companies spent “hundreds of hours” on preparing the reports to provide increased performance and planning improvement. At the same time, more than half of the representatives of the companies acknowledge that these reports focus more on the past than on the future and, moreover, they are available too late - key decisions that should be relied upon them are taken previously. Therefore, there is a need to focus on sales, projects and people: when and which contracts are needed, how much will their delivery cost and whether we have the relevant resources available. 

 Of course, this does not mean that you can forget about new technologies transformation impact such as artificial intelligence or big data. When the foundations are solid, you need to start looking into the future. Innovations change traditional models of providing value and increase business opportunities - create new opportunities but also threats. Updating and enriching knowledge about new technologies and the opportunities they create will not only allow their use in the right scope and time in your own organization, but will also offer expert services to clients. At the same time, you must remember not to succumb to technological trends and marketing, be careful and not make promises without coverage. Ultimately each company aims is to maintain a strict relationship between technological development and the improvement of the financial results. Any modification must have a clearly defined objective.

* http://more.deltek.com/ProfessionalServicesTrends2018

Transformation – how to make the best of it?