In a Harvard Business Review Article from 2019, they wrote about learnings from the previous recession:
“Most firms suffer during a recession, primarily because demand (and revenue) falls and uncertainty about the future increases. But research shows that there are ways to mitigate the damage.
In a 2010 HBR article “Roaring Out of Recession,” Ranjay Gulati, Nitin Nohria, and Franz Wohlgezogen found that during the recessions of 1980, 1990, and 2000, 17% of the 4,700 public companies they studied fared particularly badly: They went bankrupt, went private, or were acquired. But just as striking, 9% of the companies didn’t simply recover in the three years after a recession—they flourished, outperforming competitors by at least 10% in sales and profits growth. A more recent analysis by Bain using data from the Great Recession reinforced that finding. The top 10% of companies in Bain’s analysis saw their earnings climb steadily throughout the period and continue to rise afterwards. A third study, by McKinsey, found similar results.
The difference maker was preparation. Among the companies that stagnated in the aftermath of the Great Recession, “few made contingency plans or thought through alternative scenarios,” according to the Bain report. “When the downturn hit, they switched to survival mode, making deep cuts and reacting defensively.”
Even though a cost-cutting approach in an economic downturn is the most common approach, it can be a slippery slope as it has proven to result in:
- Delays in strategic initiatives
- Reduced Customer and Employee satisfaction
- Decreased competitiveness
- Decrease in sales
In the worst-case scenarios, this can turn into an evil downward spiral.
Gartner states, “The lessons learnt in previous downturns show that industry leaders accelerate during downturns by boldly investing in initiatives that matter.” McKenzie suggests that companies should consider more structural solutions that will not only manage costs but also build resilience and drive long-term value creation.
Process inefficiencies can be turned into a cost-saving opportunity. Through reviewing and transforming your business processes, you are able to remove inefficiencies that will not only save cost but also improve your business operations in the long run and ultimately result in:
- A sustainable competitive advantage
- Improved customer and employee satisfaction
- Better business efficiency
- Increased competitive edge
- An incline in sales
Process mining offers fact-based insights into your current process execution and sheds light on specific bottlenecks in your operational processes. It will reveal and calculate the potential value of recommended improvements, allowing your teams to accelerate their efficiency and output without additional effort.
Process inefficiencies can be turned into a cost-saving opportunity. Through reviewing and transforming your business processes, you are able to remove inefficiencies that will not only save cost but also improve your business operations in the long run and ultimately result in:
- A sustainable competitive advantage
- Improved customer and employee satisfaction
- Better business efficiency
- Increased competitive edge
- An incline in sales
Process mining offers fact-based insights into your current process execution and sheds light on specific bottlenecks in your operational processes. It will reveal and calculate the potential value of recommended improvements, allowing your teams to accelerate their efficiency and output without additional effort.
How does process mining promote saving?
1. Improves Productivity
A process mining tool can help reduce rework, invoice corrections, order changes, blocks and duplicate approvals. Additionally, it can identify potential automation that will make a tangible difference.
2. Reduces Working Capital
By removing all bottlenecks in processes, companies can achieve shorter lead times and faster delivery. We can achieve a just on-time execution and avoid too-early or too-late purchases, payments, and deliveries.
3. Optimise purchasing spend
Process mining can indicate if there is overspending happening due to maverick buying habits and ensure that an organization leveraging from cash purchases and discount opportunities.
The QPR Process Mining Business Case Calculator was developed based on real customer cases, industry benchmarks and analyst research. The tool is designed to assist organisations in understanding how they can soften the impact of an economic downturn and even emerge stronger from it.
To view the live demo webinar click on the following link:
https://www.qpr.com/webinars/process-mining-economic-downturn#register