Organisations are eager to take advantage of emerging technologies to give customers the service they expect. However, many transformation programs lack a clear connection to customer needs and have poorly defined objectives. This can lead to substandard investment decisions, meaning resources are wasted and transformation objectives go unmet. KPMG’s Intelligent Business Transformation (IBT) methodology is designed to mitigate this risk, maximise value, reduce costs and can accelerate innovative solutions.
Organisations across all industries are striving to connect more effectively and efficiently with their customers, utilising the ability to leverage emerging technologies as a core way to equip themselves with enhanced decision making. This is helping them to both anticipate and deliver on continually changing customer demands.
For some organisations, being truly customer centric will require an overhaul of their business model and technology systems. They will need to eliminate waste, maximise profit capture and analyse data that will help them personalise services for their customers.
Others may have suitable technology, but are not harnessing the full value they can deliver through that technology. They may need to undertake targeted transformation programs to improve processes or speed to market.
In the race to embrace new technology some leaders push into transformation programs before they have clearly defined organisational objectives or the needs of the customer, or understood the core business issues that need to be resolved. This can lead organisations to invest in the wrong solution or fail to keep evolving the solution once it is implemented.
At KPMG, we find that applying a practical methodology to technology adoption and optimisation is essential to achieve the best outcomes. We have developed a comprehensive six step approach – Intelligent Business Transformation (IBT) – that is a practical and tangible way to deliver value back into your business. Our approach is customised to your needs and objectives; rather than fitting a challenge into a pre-set framework.
When a major bank faced an increasing level of customer dissatisfaction and was losing market share to competitors, they asked KPMG for help. To ensure the business need and customer outcomes were clear, and the most effective solution was designed, we applied our IBT methodology to the challenge. This six step approach identified customer needs, ideated multiple solutions, prototyped the top solutions, prioritised investments, and ensured the transformation delivered ongoing and immediate value through evolutionary and revolutionary improvements.
KPMG’s IBT methodology, with the right guidance from KPMG’s broad team, can be applied to different business issues across industries. Here is the approach in more detail:
Organisations can step into transformation programs with pre-determined solutions. For example, implementing automation or robotics, or building out data and analytics capabilities. However, investing in new IT may not always solve the real business issue, or lead to a better customer outcome.
Therefore, our first step focuses on understanding what the core issues or opportunities are and the desired customer and business outcomes. It involves painting a complete picture, from processes to costs, technology to people, all while ensuring that the future expectations of customers will be met.
It is also important to ask questions about the impact of a transformation. What kind of governance structure do I need to put in place? Are we equipped for the changing regulatory environment? And what impact will the introduction of, for example, robotics and Artificial Intelligence have on people in the business and customers?
At this early point, all stakeholders must be engaged to set the foundations for ongoing support.
Once the customer need and organisational goal is clear, it’s time to delve deeper. This discovery phase involves finding out the root causes of the issues, understanding the current business environment and importantly conducting external research on competitors and industry trends.
Various techniques are used, such as ethnographic research and data analytics. Information is leveraged from external sources to better understand customers, economic situations, and other macro trends.
New information sheds light on the initial challenge and this is a good opportunity to reframe or reset the problem or opportunity to ensure objectives of the program are clearly aligned to the organisational strategy.
At this stage, we may discover some opportunities to deliver immediate value to improve the customer and business pain points. These can be implemented quickly by our experienced team to ensure that benefits are realised along the process.
After delving into the detail, it’s time to think big and disrupt the market. To ensure diversity of thinking when working with clients, KPMG draws on experts from across our business. Where relevant we have formed strategic partnerships with technology providers, start-ups and niche businesses to bring innovative new ideas forward.
This type of collaborative thinking can be facilitated in a structured KPMG U-Collaborate or Think Tank session through our Design Thinking capabilities. The results from this are well developed business model canvases, a series of solutions to prototype and test in stage 4, such as new technology, products and services, and predictions on the return on investment.
Few organisations can afford to pursue every great idea. So at this stage, leading concepts from the ideation process are prototyped and tested against the original objectives that have been framed and/or reframed. It is vital that organisations are agile and setup to quickly progress or dismiss solutions.
This involves creating priority ‘minimum viable products’ to determine their desirability, feasibility and viability of solutions. Core questions include, ‘is there a need in the market, does it solve a problem/opportunity, will it get traction with customers, is it viable to build and is it economically feasible?’
Organisations can visualise what a future customer experience could be. The testing helps to de-risk investment, and data and analytics can start to be formed. This is where difficult decisions need to be made quickly.
Once prototypes are refined, IBT moves to implementation. This involves a structured roll out of the chosen concepts into the appropriate areas of the business and measures of success are tracked.
The goal is to implement solutions that can be easily scaled up or down, and adapted as customer demands change.
Here it is vital to set up frameworks to identify leakage, to support cost management, improve product profitability, and inform investment decision-making.
Once a transformation programme is implemented, it’s just the beginning. The competition won’t stop disrupting markets, and customer needs won’t cease to change and develop.
The IBT approach therefore keeps asking, how can you keep improving? Are you still learning about your customers, capturing data and experiences, and taking in that feedback to keep delivering better outcomes?
By monitoring the transformation’s impact, organisations can be nimble in making adjustments, and always be a step ahead.
It is clear that organisations, regardless of the challenge or sector, need to think through transformations carefully to get the maximum results. Using the IBT methodology and leveraging the capabilities from across our business, KPMG can help you to optimise technology, and revolutionise the customer experience.