Data-driven value creation: fast, secure and measurable

• In today's fast-changing business reality, companies should look to realise the full value of their transformations and transactions.
• A data-driven and experience-based value creation strategy is becoming increasingly important in the face of current challenges.
• Holistic approaches, from strategy to execution, can help realise measurable improvements in revenue, operating margins, cost structures and working capital positions quickly and reliably.

So far, this decade has been characterised by constant change. The development of new, disruptive technologies, changing customer demands and the associated new operational requirements within companies, high inflation rates, rising interest rates, disrupted supply chains, new regulations - all of these have an impact on business models and the value creation of companies.

In view of this overall situation, the following applies more than ever: transformation processes in companies and the optimal realisation of all potential in value creation are of crucial importance for long-term growth.

However, a large proportion of transformation projects do not actually achieve the expected targets in terms of growth and profitability. This also applies to the majority of transactions, which also do not realise the desired value target.

To change this, companies need a data-driven and experience-based value creation strategy that combines data, insights and implementation capabilities. This allows measures to be prioritised and value enhancement potential to be identified.

Crisis situations are often the reason for initiating change processes. Ideally, however, companies should critically analyse and question their status quo before they feel compelled to do so by external influences.

This includes an assessment of service provision in all areas and the identification of the associated need for transformation and optimisation. The aim should be to achieve EBITDA improvements quickly - if possible in the same financial year. However, carrying out such a complex analysis alongside day-to-day operations is a major endeavour for many companies.

Firstly, it is crucial to quickly and reliably identify potential for improvement across all areas of the value chain. This includes both short-term successes ("quick wins") and long-term optimisation approaches. Quick wins are particularly crucial for positive earnings in the current financial year. Quickly measurable successes not only prove the effectiveness of the underlying concept, but also help to finance medium-term optimisations.

However, the final success of the project is measured above all by the effect of the long-term value levers. For this reason, all effective measures should be identified across the entire top and bottom line in order to optimise the profit and cost structure. A broad-based approach helps to focus on the optimisation potential that realises the highest financial added value, but also includes implementation risks.

What characterises a strategy for increasing value? It should have a data-based approach with which value creation processes can be redefined within a very short time. Data & analytics methods can be used to gain reliable insights (value identification). These should then be checked and evaluated with industry expertise. Only then can the optimisation measures identified be interpreted and used effectively.

Best practices are also a helpful tool when it comes to acting quickly and purposefully. However, value enhancement approaches should always be tailored precisely to the respective requirement scenario and linked to a financial value (value development) so that measures are aimed at the long-term success of the company.

Last but not least, implementing the strategy requires the flexibility to adapt to new trends and embrace disruption. Only then can successful value creation be realised in the end (value delivery).

When it comes to strategic decision-making, the days of intuitive gut feelings are over. In today's digital world, data is the first building block for identifying opportunities. Enriched with in-depth industry knowledge, these opportunities and potentials can be transformed into specific measures and initiatives.

However, the use of value creation approaches such as these is not limited to a single, specific situation. Rather, they can be designed for a variety of challenges along the entire value chain. Regardless of whether these are market challenges, competitive situations or the development of preventative measures: Data-based approaches to value creation make it possible to identify, initiate and implement sustainable and long-term value enhancement processes in companies.