This past year, when talking to senior managers in the Fortune 500, I've seen several key indicators of progress in this direction. Not all motivations are pure, however. First and foremost, we see decisions driven by fear - the fear of being outsmarted by the competition, fear of not being able to achieve the cost reduction directed by senior management, and the fear that while intelligent value creation may seem like a cool concept on paper, it may not deliver a clear ROI in practice.
Increasingly, we see businesses analyze the micro-details of their operations using unstructured data coming from sensors, devices, third parties, and the Web, sourced in real time on a large scale. Using advanced analytics techniques such as predictive analytics, data mining, statistics, and natural language processing, businesses can study live data streams to understand the current state of the business and track aspects such as customer behavior, productivity, quality and compliance. Intelligent value creation capabilities are now being extended to R&D and innovation as well to generate new insights and create value.
Companies can achieve growth and cost reduction through Intelligent Value Creation.
In retail, we've all seen how Walmart outperforms the competition through advanced logistics and supply chain efficiencies. Intelligent logistics practices have optimized all transportation, distribution and supply chain areas. Now the company has invested in an acquisition to improve their understanding of social analytics and customer experience. By analyzing what they call the "Social Genome," Walmart labs is all about intelligent value creation. Here's how they describe the goal:
"The first generation of ecommerce was about bringing the store to the web. The next generation will be about building integrated experiences that leverage the store, the web, and mobile, with social identity being the glue that binds the experience."And as we see in the news headlines, the automotive industry has gone through dramatic changes. Toyota has maintained strong growth throughout the last 20 years by adopting intelligent value creation: constant improvement at its core, embraces learning faster about your products, systems and process. The commitment to embrace change and improve your business is in itself ....intelligent. Automotive companies that did not embrace constant improvement with a reliance on legacy products (e.g. GM) have suffered tremendous loss of market share. Cutting costs and hacking away from a finance perspective does not create intelligent value. GM was amazed at how Ford Motor Company reduced its work force in 2006 - 2008. They referred to it as gutting the company. Ford was focused..(pun intended) on creating new product lines that were truly competitive; the market responded in kind.
Improvement and commitment to understanding and exploiting market trends is intelligent. Protecting existing market share - driven by fear - is not.
The healthcare industry is going through enormous changes as well. Drug discovery - taking a new discovery to market - is a multi-billion dollar exercise in risk management. Major pharmas are reducing product development and refocusing their business on much fewer product lines. (Sounds a little bit like the autos a few years ago...) The only way for these companies to improve their cost metrics and revenues is through intelligent value creation. Lab coats watching lab rats is not exactly creating systemic intelligent value. The high cost of labor and a lack of intelligent solutions has forced biopharma into decisions to limit or outsource research initiatives. But all that is changing. At Neural ID, we have just completed an extensive survey of the healthcare industry, and we find clear indications that Intelligent Value Creation is at the heart of future plans for all the big players.
Intelligent Value Creation is a decision-making process which can be implemented using our agile methodology; we work with your technology and IT staff to bring a solution from definition to design to production in rapid succession - sometimes within hours, often in less than a week.
Stay tuned for more!