The pace of technological evolution is exceptionally rapid, presenting great challenges for mid-sized and large organizations to adapt. The diverse array of systems and tools utilized by these organizations requires substantial integration efforts. By the time a migration or integration project is completed, newer, more advanced technology is often available.
Additionally, the complexity introduced by sustainability requirements, especially in reporting and scope, compounds these challenges. Environmental, Social, and Governance (ESG) reporting, a synthesis of extensive data, adds another layer of complexity.
Transitioning towards sustainability while embracing new technology is a game-changing strategy for all organizations. Achieving the right balance between these two priorities is crucial for future success.
Here are three main strategies leaders can use to keep their organizations in the game.
Strategic Approaches for Organizational Leaders
- Partnering with Technology Companies
Partnering with technology companies can accelerate digital transformation and enable customized, integrated solutions. Leveraging existing expertise and solutions is often faster, more accessible, and cost-effective compared to developing solutions internally. Note that some of the examples listed are not only partnerships from 2024 but extend far beyond, with some having already lasted for two or three decades:
- PWC/ Uber/ Deloitte (30 years)/ Mastercard- Oracle
- Capgemini- SAP
- BMW- NTT Data
- BNP Paribas- Mistral AI
- Genpact- Marelli/ ServiceNow/ McKesson
- DHL- Unido
- Siemens- 3W Network/ Madkour/ GBM
These partnerships can take various forms, but they all target fostering innovation and collaborative measures to achieve automation and digitization of diverse industries.
Key aspects to consider while pursuing this strategy include maintaining control and knowledge within your organization to avoid unhealthy dependencies. While agility can be enhanced, it’s important to invest time in understanding the existing structure, processes, and overall business. Additionally, fostering a genuine understanding of the organizational culture is crucial for success.
- Developing Internal Solutions
Organizations may choose to develop internal solutions with minimal disruptions, focusing on safety and security rather than immediate core modernization. This approach often involves internal tech teams or smaller tech contractors offering niche solutions such as:
- Integrations between existing systems
- Incremental AI improvements
- Small-scale automations
- Enhancements to user interfaces
- Data analytics optimizations
- Streamlined workflow processes
- Upgrades to existing software platforms
It’s important to highlight that these initiatives often aim for quick efficiency gains rather than more fundamental changes. The decision to pursue core modernization is significant and heavily depends on the organization’s vision for the future. Organizations resistant to modernization risk being left behind, as evidenced by historical examples like Kodak, Polaroid, Nokia, Blockbuster, and BlackBerry, among others.
- Centralized Operations, Tech Driven and Collaborative Innovation
For mid-sized organizations, which may find extensive partnerships financially challenging, centralized operations, regional competency centers, and unprecedented collaboration across organizations and industries present a viable strategy. This approach advocates for:
- Reinventing business frameworks to foster sustainability and ethical grounding
- Standardizing indirect functions across industries while allowing customization of core business processes
- Sharing costs and control for indirect functions integration and automation
- Testing new business models without major disruptions and modernize organizational structures to better fit future needs
This strategy empowers employees and fosters streamlined processes, integrated systems, predictive analytics, benchmarked insights, automatic sustainability reporting, and comprehensive system-generated capacity planning. It is a holistic approach that considers not just the technological perspective but also the readiness and needs of people in the new technological era. This model ensures that organizations are well-prepared and fully equipped to thrive in a rapidly evolving landscape.
The Importance of Collaborative Leadership and Sustainable Growth
Effective leadership must embrace ethical practices and inclusivity. The “Great Resignation” highlighted a need for reinterpreting leadership roles and organizational structures. Sustainable growth involves allowing broader decision-making, investing in the education and financial stability of the workforce, and fostering an environment where everyone can thrive.
At COZIA, a holistic business framework has been developed to address these complexities. The model starts with people, followed by processes, and then the integrated, AI driven ecosystem.
While a shared services or Global Business Services (GBS) structure was initially driven by labor arbitrage, it is crucial to recognize that this strategy is not sustainable in the long term. COZIA team achieves cost-effectiveness not through labor arbitrage but by proposing a business framework that enhances efficiencies through its structure and promotes intense cross-organizational collaboration and cost-sharing. Enduring success relies on ethical leadership and adopting more collaborative and inclusive approaches.
Conclusion
Leaders must navigate the rapid technological advancements and sustainability demands by adopting strategic approaches that balance innovation with ethical practices. Whether through partnerships, internal development, or collaborative innovation, organizations can position themselves for future success. Embracing these strategies will not only ensure financial strength but also contribute to a sustainable and inclusive business environment. The future of successful leadership lies in empowering the next generation to shape a better world.
Cristina Volovei
CEO & Founder COZIA Solutions