Smart Technology Offers Vast Business Potential, yet a Relatively Small Proportion of Firms Appear to be Realising it

LONDON, October 11, 2011 -

- PA Consulting Group launches global survey of over 200 business leaders on how data and smart technology are used to enhance business value  

When implementing smart technology*, in a third of cases, business units are finding it challenging to work across traditional boundaries according to a PA Consulting Group global survey of 216 business leaders.

Fundamental to the smart organisation is the ability to capture, analyse and act on information within and outside the enterprise. To do this effectively, organisations need to break down traditional boundaries and to start sharing information across the company. The survey shows that in over a third (36 per cent) of cases, business units are finding it difficult to work together to facilitate cross-company information intelligence and middle management is resisting change. Only 44 per cent of organisations have resource dedicated to managing and innovating with data assets.  

Organisations are also faced with the challenge of securing stakeholder support in implementing smart technology, overcoming resistance from middle management to change and a lack of agreement at senior level on the business priorities and potential solutions.

Around half of business leaders surveyed said they had not supported staff adequately during the transition to new ways of working and only ten per cent are seeking ways to improve internal communications through connected working.  

PA’s Peter Siggins, expert in smart organisations, comments: “It is clear that businesses are at an early stage of maturity in maximising the value of smart technology. It is also evident that the advances in technology are running well ahead of the readiness of organisations to make the necessary and critical changes to the way they operate. This includes breaking down traditional boundaries and making smart technology a boardroom issue. Organisations must allocate dedicated resources to look at how data and information - both within and outside the enterprise - can be fully leveraged.”

How can business leaders create the right environment to allow the smart organisation to flourish?

Make the move towards a smarter organisation a corporate priority. To take advantage of the opportunities presented by smart technology, the highest levels of leadership in the firm ought to champion innovative thinking and inspire their organisation to think afresh about the way they do business. PA’s survey highlights a lack of consensus among the senior team in many organisations as to what the key challenges are for their business and how they should be addressed - 16 per cent of COOs believe new technologies are having a significant impact in comparison to 52 per cent of CIOs. To exploit smart approaches members of the senior team should also ensure their priorities are aligned.

Create conditions that allow data and information to be readily shared, analysed and combined in innovative ways. PA’s survey reveals that traditional organisational boundaries are an obstacle to leveraging information and data across the enterprise, and often technology architectures mirror this complexity.  Corporations that currently experience or recognise this condition within their form should consider forming enterprise-wide initiatives focused on leveraging smart technology. Formed through a series of mergers, engineering company MAN Diesel was a cluster of companies and individual business models, processes and IT systems. A cost-effective master governance model and data management processes were designed and implemented to give the business access to standardised data across all its locations. By engaging with key decision makers and business champions on the change management process, it ensured commitment for the new approach. Today, the global overview MAN Diesel has of customer and supplier activities means the company no longer wastes time and money aligning and matching data across functions, departments and borders.

Support and recognise your people in the process of becoming smarter. Just 11 per cent of organisations surveyed are focusing on training and developing staff to adopt smart technology. It is people who use smart technologies, it is people who communicate the benefits (both from a customer and employee perspective) and it is people who can stop companies accessing the prime benefit of smart initiatives; information.

For more information on creating a smart organisation, visit www.paconsulting.com/smart

Notes to the editor

Smart technology allows organisations to monitor and interact with their employees, customers, suppliers and partners in real time. Used intelligently, it helps organisations to spot business opportunities and become more competitive.

About the survey

The 2011 business leader survey was conducted on behalf of PA Consulting Group by independent research agency TNS Research International (TNS), a global market information and insight group.

The survey set out to understand the global challenges, opportunities and actions of today’s business leaders in companies with revenues ranging from £200 million to £1 billion+, across eight sectors and five geographies.  Our research included 216 in-depth interviews to delve deep into the drivers of organisations across the globe.

About PA Consulting Group

PA Consulting Group is a leading management and IT consulting and technology firm. Independent and employee owned, we operate globally in more than 30 countries and transform the performance of major organisations in both the private and public sectors.

From initial idea generation and strategy development through to detailed implementation, we deliver significant and tangible results. We have outstanding technology development capability; a unique breadth of skills from strategy to performance improvement, from HR to IT; and strong expertise in communications, media and entertainment, defence, energy, financial services, government and public services, healthcare, manufacturing, transportation and logistics.

For further information, please contact: Laura Hamblin on +44-207-333-6191 or email laura.hamblin at paconsulting.com