Top-performing companies are twice as likely to use managed service partners

Our speakers

Transaction efficient and boundary permeable

While nearly every company is undergoing some kind of change program, far fewer companies have a total commitment to top-to-bottom, end-to-end transformation. Yet research from PwC shows a clear correlation between prioritising and investing in transformation and being in the top 20% of an industry in terms of profit margin and revenue growth. 

Transcript

Ian Hockings, Partner, Productivity Lead, PwC Australia

PwC research tells us that top-performing companies are continuously investing and prioritising transformation. Not only just to reduce complexity, but also to get better connectivity across an organisation to reduce friction, and also to explore new potential connected business models. 

Their operating models are typically much more streamlined. There’s better clarity of accountabilities, which is leading to faster and more effective decision making. That can lead to a range of benefits. 

Better customer engagement and experiences, faster transaction times, and better regulatory compliance in say the financial services sector. And for the likes of healthcare providers, it could be better models of care, more streamlined supply chains, or even just better patient management.

So why are some companies getting more out of their digital operating models than others? 

Right up front, you need to be very clear about, one, your business case, and the trade offs you may need to make. Two, what does actually productivity mean to you, and what are the benefits you’re seeking? And you need to have clear conviction and alignment around execution. 

Crucial decisions need to be made on what is core and where you’re seeking to make the productivity gain. Be that internally or whether you’re looking to seek with third party support or through a managed service relationship. 

Whichever way, there need to be sustainable outcomes.

Subhodeep Ghosh, Partner, Strategy&, PwC Australia

Top-performing companies are six times more likely to invest in managed services, to keep pace with changing technology, but also to close out on critical capability gaps. 

In our experience, top-performing companies recognise the importance of external ecosystems and partners that can help accelerate and sustain their transformation agendas. And they do this by bridging critical capability gaps. As a result, successful managed services partnerships go hand in hand with digital transformation journeys. 

To become transaction efficient and boundary permeable, organisations need to understand the gaps in their capability system, to become a truly connected digital and intelligent enterprise. And then carefully assess if a strategic partner can help bridge those capability gaps and accelerate the transformation journeys.

Ian Hockings, Partner, Productivity Lead, PwC Australia

Making clear choices around your business operating model to drive efficiencies, customer and employee engagement and outcomes, and making informed decisions around managed services partnerships are key factors for winning performance in Australia.