The 4 things productive companies do differently

Australian business leaders are increasingly concerned about productivity, with the country’s labour productivity registering a decline of 0.5% in the September 2024 quarter, according to the Productivity Commission.

With the financial year ending on June 30, many organisations are exploring technology investments in hopes of boosting productivity and driving value. 

What defines a productive organisation? 

Overall, productivity serves as a strategic tool to drive profits, enhance shareholder value, promote mutual benefit and accelerate product innovation. The most productive organisations are characterised by specific traits. They not only self-report as being more productive than their sector counterparts, but they have also seen higher revenue growth over the past three years.

Infor’s latest study, How Possible Happens, surveyed 250 respondents from Australia (out of 3,600 global decision makers) to uncover how the most productive organisations generate real value from their tech investments. The study found that a vast majority of organisations (80%) agree that success will depend on the potential adoption of new technologies, while 78% expect to increase investments in technology by 20% or more over the coming years.

CPA Australia research indicates that 60% of firms saw an increase in profitability due to increased investment in technology and adoption of new technologies, while 49% of firms reported higher profits from upskilling their staff’s technological capabilities. But, despite implementing new technologies, some businesses are left disappointed by the lack of significant improvement. 

Companies in manufacturing, distribution and healthcare continue to grapple with significant changes within their industries and businesses as they seek specific data and insights on how to effectively deploy technology to unlock value. Those who are chasing productivity will need to find the right balance between investing in the right technology, developing efficient processes, and fostering an agile and proactive company culture. 

Organisations can successfully build value by focusing on four key attributes.

1. Invest in the right processes and systems 

Even as organisations accelerate their unique digital transformation journeys, a chasm exists between technology’s promise, and what is delivered. There is a need to optimise and continuously improve processes to realise value creation. A centralised software platform can provide organisation-wide visibility into real-time information, streamlining communications and driving operational efficiencies. This can help businesses eliminate less effective areas over time.

2. Embed agility and future-readiness 

Disruptive new solutions make bold promises of even greater success, but leaders must remain grounded and navigate the waters to simultaneously address their organisational pain points. Embracing the power of advanced technologies like GenAI and Process Intelligence can help mitigate risks  and respond more rapidly to the turbulent and unpredictable nature of the modern world. Maximising these tools distinguishes top-performing organisations apart from the rest. 

3. Make data a top priority

Best data practices are arguably at the foundation of all successful decision making. The highest-performing organisations leverage their data in more insightful ways within their core business operations, enabling them to innovate and unlock value at every turn. A data model can help cut through the noise. When organisations create a blueprint to guide how their data is stored, accessed, and managed, they remove silos and form the building blocks of data-driven decision-making.

4. Customer-centricity

Successful organisations have a deep commitment to customer outcomes. They integrate customer feedback into every aspect of their business, striving to anticipate their customers’ needs and being accountable for them – from using smart technology in their products to leveraging customer insights in product innovation. Evidence suggests that AI solutions can boost customer service, shorten sales order processing time and help agents respond quicker to customer enquiries. AI tools can facilitate more complex use cases, such as enabling organisations to build customised outputs; for example, a recommendation engine embedded into the sales order screen.

Recipe for success

Australian organisations are on the cusp of a shift that can yield huge business productivity and efficiency gains, enabling them to access previously untapped value streams and make a real impact on revenue growth. The real challenge isn’t just about adopting technology, it’s about the mindset and cultural shift needed to unlock its value. Organisations that succeed will be ready to evolve their processes and fully embrace data-driven readiness, gaining a clear vision for the future. 

Digital strategies must be bold, with transformation that is measurable and aligned with business goals. Although finding the right path is far from straightforward, organisations should feel empowered to adopt innovative solutions. A majority of Australian organisations will need industry-specific ERP to cater to their unique needs but by combining tech innovation with configurable capabilities, they can build tailored solutions and maximise their business potential in the new year.

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