Infor has published a report based on global research. This report highlights how the most high-performing organisations have achieved value creation from their investments in technology. The report is based on a May 2024 survey of 3,600 respondents across 15 countries and seven industries. The industries involved included Automotive, Distribution, Fashion, Food and beverage, Healthcare, Hospitality, and Industrial Manufacturing.
The key finding from the report is that 80% of organisations believe that technology can unlock the productivity gains they are aiming for. 78% of organisations expect to increase technology investment by at least 20% in the next few years. Furthermore, 75% of global organisations are aiming for a productivity gain of 20% in the next three years.
At the heart of technology investments are different types of AI, including generative AI, to assist organisations to innovate, automate and make predictions. The How Possible Happens: Filling the ‘value’ with technology-driven productivity report is downloadable here (registration required)
Kevin Samuelson, Infor CEO, commented, “Companies in manufacturing, distribution and healthcare continue to face significant changes in their industries and businesses. Our research can help provide specific data and insights on how to successfully deploy technology and innovation to unlock value in a fast-changing world. Every organisation wants to implement technology as a primary driver of value creation. The research that we have done identifies the “Vectors to Value” that the most productive organisations use as a blueprint for success.
“Organisations need to optimise and continuously improve processes; embrace the power of advanced technology; push data in decision-making; and keep customer requirements front and centre. By aligning with these vectors, organisations can increase overall business productivity and therefore drive true value creation and competitive advantage.”
What is in the report
The 30-page report combines data points from the survey with secondary research from IDC, Forrester, IDC McKinsey, and others. It contains some solid analysis, a mix of data points and visualisations, and quotes from industry leaders.
What is surprising is the lack of regional or even industry breakdown within this report. One suspects that Infor will generate several other reports that go into further detail by region, country or industry in the near future. The survey has a large sample, which gives validity to its findings.
There are four chapters within the report:
Assessing organizational mindsets in the face of digital change
This section sets the background for the report. Thus highlighting three main trends that are influencing and driving organisations around digital transformation. The authors cite the economic pressure that is driving change, with an emphasis on value.
The second influence is increasing customer expectations. The report cites Accenture and McKinsey’s views that customers are now looking for a more connected, virtual, and environmentally responsible experience.
Thirdly, the emergence and rapid development of technologies such as GenAI have delivered a fast-changing environment across different industries. Which has meant digital transformation is increasingly urgent but tempered with a focus on value. Historically, technology investments that have failed can be recovered from. Today, there is a huge risk that firms are left behind.
Chasing value at every turn
Value creation is now at the heart of investment goals. Increasing productivity is where the authors feel that technology investment delivers. The report states, “Ultimately, any new solution should directly link to value creation opportunities and measurable outcomes.” To achieve that, organisations must take the right approach.
That approach consists of four vectors, which the research found leading organisations are adopting:
- Processes and systems technology can help transform and tune processes.
- Agility and future readiness. GenAI, RPA and Process Intelligence can help organisations adapt faster.
- Culture of Data: data is critical.
- Customer Focus. The value goal is about delivering success to customers, which in turn drives value in the organisation.
Exploring the power of productivity
This section looks at how high-performing organisations align with the suggested vectors. 26.5% of organisations find their processes enable them to be as productive as possible. There were some interesting anomalies between industries in the various industry sectors regarding the performance visibility gap between the best and worst organisations. In industrial manufacturing, this was as high as 25%, whilst Fashion and Food & Beverage were 17% and 16%, respectively.
In fact, the data visibility gap in industrial manufacturing across the four vectors was consistently higher. The exception was customer focus, where the gap for fashion was 33%, with Food and Beverage at 18% and Industrial manufacturing at 13%. However, this may come down to the lack of maturity in collecting customer feedback across the industrial manufacturing sector. And how leaders in fashion collect and leverage customer feedback through multiple channels. It may also reflect that fashion is more B2C than industrial manufacturing.
Closing the value void: The power of partnership
To ensure that organisations can deliver value they must consider with whom they partner. The authors offer Infor as a vehicle for success. The industry-specific Infor CloudSuites and the Infor OS, including its recently launched GenAI Assistant, process mining capabilities, and ESG Strategy Management to help make the possible happen. The authors reflect on how Infor can help deliver against the data, process and innovation challenges.
The report notes, “Through partnering with the right provider, organizations can open the floodgates to tailored digital strategy underpinned by a wealth of industry-specific experience.”
Focus on EMEA
The authors break out the difference between EMEA and UK results in the only regional breakout of data in the report downloaded.
In EMEA, 77% of organisations expect a 20% productivity boost, closely aligning with global trends.
However, the UK has a much larger gap between the most and least productive organisations around processes, at 46%, 21% higher than the global average. It means that many organisations have inneficient processes.
On the technology side, there is also a 23% gap between the most and least productive, compared to the global gap of 9%. Many UK organisations are, therefore, well behind competitors, both national and global and must invest to close the gap. The report, however, does not identify which industries are worst affected by these gaps.
It seems likely that the smaller cohort of top-performing firms is competing globally. But there is a concern that the rest are falling behind, which does not bode well. Can Infor and other tech vendors help close the gap?
Dr Chris Brauer, Director of Innovation at the Institute of Management Studies at the University of London, commented, “The research undertaken by Infor makes it clear that the real challenge isn’t just about adopting technology, but the mindset and cultural shift needed to unlock its value. Organisations that succeed will be those ready to evolve their processes and fully embrace data-driven readiness, gaining clarity of vision for the future. It’s a great look for what’s to come.”
Enterprise Times: What does this mean
Until the fourth chapter, this is a well-balanced and very interesting report. The fourth chapter is a solid marketing pitch that justifies why Infor is the right partner for global organisations. However, with the data from the survey generalised, the paper might have been better with a more thoughtful conclusion.
There are surprisingly few data points from the research in this report, and while those that are included, one suspects there are many more to come. This is a high-level and general report. The industry-specific reports, if or when they emerge, will have even greater value.
Overall, the report provides some good insights, but it could have been strengthened with some actions or questions for the reader to consider at the end of each section. Instead, Infor wants organisations to kickstart their journey to value by contacting them.
