How to Realise Benefits from Investments in Technology & Digital

Investments in Technology and Digital

In this report, we examine how over the last two decades significant investments and changes in technology and digital have greatly impacted global businesses, but in recent years this transformation has been further accelerated by the pandemic creating both opportunities for businesses to compete in global markets along with challenges on a global scale in the form of information management and security. We explore what businesses must do to achieve returns and realise benefits from investments in technology and digital. Including how trends in technology and digital transformation are resulting in significant disruptions to businesses, giving rise to both challenges and benefits. Related: A post pandemic perspective

Alignment with Strategic Business Plans

At a strategic level, all businesses need a clear business plan and a sustainable business strategy enabled by technology and digital to support financial objectives, transform and compete successfully. This transformation may take the form of artificial intelligence, data analytics, cloud computing, or the internet of things (IoT). Investments in digital transformation may also relate to technology that provides businesses with leading technology for innovating and improving overall value proposition by increasing efficiency, improving business processes and productivity. Businesses that invest in digital transformation and technology best suited to their strategic goals can see huge benefits to the business if implementation risks are managed robustly and minimised.

Capturing and Reporting Sustainability and ESG KPIs

Businesses who invest in technology and digital that align with a sustainable strategy, and in providing the training and skills needed to effectively transform, will gain a competitive advantage and the opportunity to add real value throughout the business or over a project’s life cycle. Investments in digital transformation help businesses improve efficiency by using technology such as cloud computing, artificial intelligence, and app integrations. Enabling automation and data analytics make a huge impact by allowing businesses to be increasingly agile and responsive. Investments in technology can also support sustainability transformation by enabling energy-saving practices and in reducing carbon footprint. Technology can support the automating, capturing, and reporting of ESG KPIs. This can help overcome issues like inconsistent data, information management, and workflow silos on projects. For these, it is vital to curate a suitable investment model for example an integrated digital platform best suited to the sustainable business plans of the company.

Financial Economic Business Case and For Funding

When organisations or businesses invest in digital transformation it can lead to huge benefits to the business and wider economy. Opting for digital not only leads to business gains and productivity, but it can also lead to sustained economic success. This is evident in the UK governments recent initiative “Help to Grow Digital” that allows businesses to take advantage of up to 50% discount on the costs of approved software, up to £5,000. The scheme is aimed at enabling SME businesses to become more resilient by taking advantage of investments in digital technology. Selecting a technological investment that is suitable, alongside a clear understanding of the business model and strategic plans will help determine feasibility, including how much budget the business needs for technological investments and in which operations or service areas it needs to prioritise these investments in return for an acceptable level of forecast rate of return on investment or planned benefits.

The above graph from Statista shows that in the year 2022, spending on digital transformation is estimated to reach 1.8 trillion U.S. dollars and it is projected to be up to 2.8 trillion U.S. dollars by the year 2025 in terms of global spending on digital transformation. According to Statista one of the main reasons for digital transformation is that it boosts competitive advantage and creates a leading edge but the benefits of transformation are not limited to gaining a competitive advantage. It can also help attract customers from specific market segments, geographies and revenue from new or alternative sources.

Culture, Training and Change Management

In order to fully realise benefits, an organisation must have clarity of its work culture and ethics before investing in digital. So, understanding the capabilities of employees for example, how adaptable they will be to technological change is key, as is how much user acceptance testing, training and management workshops may be required to fully realise the benefits of going digital. This is very important because digital transformation can result in a significant proportion of operations going virtual, but staff must be ready to embrace change that can help the business challenge its rivals and create a niche in the market.

Planning your Digital strategy

There is an ongoing trend and inclination towards the Internet of Things (IoT), Artificial intelligence (AI), and E-commerce. The planning process begins with a roadmap and adapting this based on the digital requirement to achieve the business strategy. According to Metro rail news, the infrastructure industry for example can reduce construction costs by 30% with the help of digital platforms. In the construction industry, the process often includes managing construction work with daily log registers, procurement, blueprints, construction designs, daily progress reports etc. If these processes are integrated into a single source with the help of digital the process will be simplified, more efficient and productive. Allowing project managers to track real-time performance data, time and cost once at the source. Technology can also be used to digitally capture records that can be used as an audit trail to support cost assurance audits or legal cases when disputes arise.

Related: Why technology is the life blood of successful data-driven decisions

Trends in Digital and Technology

IoT (Internet of Things)

This may involve connecting smart devices to the internet. A very simple example of these are smartwatches that are connected to mobile phones which have gained a lot of attention in recent years. These devices become very useful once connected to a mobile phone, enabling the counting of calories, monitoring of blood pressure or heart rate, and the making of digital point of sale payments.

Drones

One elementary use of drones is for aerial photography, but the use of drones is not limited to photography. Drones are now used in other professions like surveying in the construction industry for railway or highway maintenance and asset monitoring etc. In addition, drones are also now regularly used during sports for the live coverage of matches like football and car racing.

Cloud-Based Software and APPs

Historically businesses spent millions on investments in hardware that were not always optimised. For example, sending emails to customers individually but today affordable scale-able cloud-based software apps like Mail Chimp, HubSpot and Xero mean that businesses can send optimised bulk emails to 10,000s, maintain a CRM system, capture accounting records, and submit tax returns with one single click.

Artificial Intelligence and Robots

In science and engineering, AI is used where humans do not have easy access like space for example NASA has sent robots to mars to predict the scope for life where humans may not be able to survive. Robots give insights in the form of photos, that can be used for predicting or detecting any human life in space. They can also be used for practical basic needs like teaching, cleaning, or automation for example during medical surgeries.

Virtual and Augmented Reality

Virtual reality uses computer technology and systems to stimulate the senses creating the illusion of reality. For example, computer-generated 3D simulation or enhanced superimposed images users can interact with in a real or physical way while using electronic helmets with built-in screen or gloves fitted with sensors during video games, training, and for virtual business meetings or events.

How CFBL can help

• Developing the business case to obtain transformation funding
• Supporting funding for investments in technology and digital transformation
• Providing advisory on strategy, cost optimisation and digital transformation
• Supporting adoption of software/technology for audits, cost reporting and analytics
• Providing advisory for planning, forecasting and reporting software
• Evaluating and converting data into real-time intelligence for decision making
• Providing people training on controls to mitigate digital transformation risks
• Evaluating data and analytics to support future business decisions
• Supporting the provision records and data that can be independently evaluated
• Facilitating software investments for automating, capturing and reporting ESG KPI
• Independently reviewing data for real-time intelligence to support decision making
• Developing a project roadmap, measuring performance and re-evaluating KPI’s

Who We Work With and What We Do

• Infrastructure project: cost assurance audits, systems payroll HR audits & protocols
• SME Business Strategy: 5-Yr strategic business plans and financial statements
• Fintech/Transformation advisory: minimising risk and optimising business case ROI
• Sustainability & ESG: pay-gap carbon cost audits reporting ESG finance training
• Training: delivering case-based training for buy-in to technology & staff upskilling
• Fintech & Digital: strategy cost optimisation & digital transformation advisory
• Steering Group (CSR): cost assurance and audits on infrastructure projects/contracts

Infrastructure Projects – Tips & How can CFBL Consulting help

• Cost assurance: implementing capex people, process, systems & controls
• Protocols: training & designing project/contracts process, tools, templates
• Independent cost audits: verifying actual/ defined cost on cost/open book contracts
• Systems auditor: examining financial records, controls, and cost systems for integrity
• Pre-audit diagnostic: identifying risks on cost-based/open book alliance contracts
• Independent contract auditor role: Undertaking internal project/contract auditor role
• Legal records: facilitating records for legal compliance on cost/open book contracts
• Payroll audit: Independent HR, payroll, carbon cost, gender pay-gap/balance audit
• Business case: Implementing capex strategy/developing investment business cases
• ESG Finance training: upskilling staff/supply chain on ESG KPIs in decision making
• ESG protocols: training & designing controls, tools, and templates for ESG reporting

SME Business Strategy -Tips & How can CFBL Consulting help

• Developing/implementing strategy: sustainable business strategy for growth/scaling
• 5-Yr Strategic business planning: financial statements, analysis for funding & grants
• People training & upskilling: business and supply chain engagement and training
• Independent Fintech/Transformation Advisory: minimising risk and optimising ROI
• Capex Investments: optimising grants, funding R&D tax credits & capital allowances
• Financial management: tax, planning & implementing financial controls for resilience
• Finance business partnering providing strategic advice in financial decision making

Sustainability & ESG Strategy Tips – How can CFBL Consulting help

• Developing and implementing sustainable business strategy for SME growth/scaling
• Sustainability/ESG strategy: implementing, carbon measurement and benchmarking
• HR/Payroll audit: Independent HR, payroll cost, pay-gap gender balance auditing
• Sustainability & ESG: strategy implementation, carbon cost auditing/impact reporting
• ESG Finance training: upskilling staff/supply chain on ESG KPIs in decision making
• ESG protocols: training & designing controls, tools, and templates for ESG reporting

Fintech & Digital Transformation Advisory Tips – How can CFBL Consulting help

• Commercial systems: advisory on commercial, contract, cost, audits & projects
• Financial systems: advisory on financial, HR, management, and reporting systems
• ESG KPI reporting: Insight and benchmarking for reporting and competitive edge
• Independent advisory on payroll, project, contract, cost, audit and reporting software
• Independent advisory on technology that best aligns to strategic goals benefit
• Training: delivering case-based training, for buy-in to technology & staff upskilling

Steering Group (CSR) Outputs: Tips – How the Steering Group can help

• Key Output 6 – Cost Reporting
• Key Output 5 – The People Perspective
• Key Output 4 – The Legal Perspective
• Key Output 3 – Contracts & Key Terms
• Key Output 2 – Standards & Frameworks
• Key Output 1 – Cost Assurance Key Issues

References

1. https://www.metrorailnews.in/digital-transformation-can-reduce-infrastructure-construction-costs-by-30/
2. https://www.statista.com/statistics/870924/worldwide-digital-transformation-market-size/
3. https://spaceplace.nasa.gov/mars-rovers/en/#:~:text=Over%20the%20years%2C%20NASA%20has%20sent%20four%20robotic,Red%20Planet%20soon.%20Mars%20is%20a%20fascinating%20planet.
4. https://spaceplace.nasa.gov/mars-rovers/en/#:~:text=Over%20the%20years%2C%20NASA%20has%20sent%20four%20robotic,Red%20Planet%20soon.%20Mars%20is%20a%20fascinating%20planet.
5. https://www.statista.com/statistics/1017623/worldwide-digital-transformation-drivers/