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(upbeat music)

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The pressure on management teams keeps growing,

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from activist investors, market disruptions,

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and new types of competitions.

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Many companies have already launched

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performance improvement programs,

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and captured the winds from traditional levers.

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But digital and database initiatives

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and tools, can generate fast, sustainable,

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and real-world improvements.

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For companies that have already undergone

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traditional transformations, these digital levers

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can help get to the next level of performance.

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And for companies that haven't yet begun the process,

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they should be an integral part

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of a performance improvement program.

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(upbeat music)

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Digital levers lead to new ways of working,

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rather than just cutting costs and asking teams

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to execute existing processes with fewer people.

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Digital levers allow leaders

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to redesign processes from the ground up.

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They're automated, with data captured at the right junctures

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to deliver insights to managers.

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For these reasons, digital measures

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require organizations to perform better,

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not through a one-time change,

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but through fundamental reboot in how work gets done.

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(upbeat music)

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We identified ten, grouped into two main categories.

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The first is the company's product and service offering

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including go-to-market functions.

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That category includes levers

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like digitizing the sales force, marketing,

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customer service, and even making R&D

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and product development faster and more efficient.

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The second category is operations in areas

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like manufacturing, procurement,

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rethinking the supply chain, and improving service.

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(upbeat music)

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(upbeat music)

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One of the examples

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from the product and service offering category is pricing.

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A lot of organizations, even today,

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pricing is based on hunches more than data.

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It is gut instinct or what we charged last year.

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But gathering data from a lot of different sources

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can tell companies far more about the perceived value

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that the customer feels about a given product or service.

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That can help them make sure they have the right offering,

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format, and price tailored to every customer,

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purchasing occasion, and channel.

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One fashion retailer used data and analytics

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to improve its promotions and markdowns

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which are a big part of the fashion industry.

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That led to a 7% boost in margins on promotions

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and an 18% impact on markdowns.

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Similarly, a US retailer boosted revenue by $5 million

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in a single product category.

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That's with the exact same products,

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just applying a data-driven approach to pricing.

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(upbeat music)

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Let's take the example of procurement.

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That function can be extremely fragmented,

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and purchasing managers are often on their own

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in terms of making decisions.

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But an AI-based tool can help them use

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the right negotiation approach

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for a given category or purchase.

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The tool analyzes the factors

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driving a specific commercial decision

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and uses game theory to identify the strongest tools

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such as the type of auction, or tender process,

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along with the commercial aspects

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such as different type of commercial optimizations.

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It also learns from previous negotiations

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and incorporates changes in the commercial environment

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to improve its accuracy over time.

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One company that used this algorithm

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reduced procurement spend by 5%

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and freed up about 30% of manager's time

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by simplifying the negotiation process.

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Think about it.

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A lot of processes and those functions

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are consistent and repeated over time.

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Finance has to close the books every month

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or at least every quarter.

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HR has to onboard new employees and handle

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administrative stuff like expense reports and travel claims.

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A lot of that can be done faster

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and more accurately through algorithms.

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And by doing so, companies can also start

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to gather insights about how to improve those processes.