Why Bring a Lean Approach to Digital?
With promising technologies like Artificial Intelligence, IoT, Virtual Workspaces, and others available to companies right now, many organizations jump into using new technologies only to realize their efforts are wasted when these technologies do not deliver the intended business results (or value). This is where a straightforward lean approach can help.
Lean is about identifying value from the customer’s perspective and creating a “value stream” in which all business activities become value-added. By eliminating non-value-added activities (in other words, “waste,” including wasted time, energy, and resources), companies gain immediate performance improvements and greater agility. Truly lean companies take a macro-view of their business using this end-to-end value stream thinking approach. And they do so much more than eliminate waste; they continually create more value for customers by using only the right digital technologies in their value streams where those technologies can actually help improve performance.
Smart companies embrace technologies in ways that help them create value, unlock more value, and be responsive to customers. This is what helps companies stay competitive and ultimately, become “future proof.”
Still confused? Here’s an example.
In procurement, the first step is to simplify the overall procurement process by focusing only on value and eliminating waste using lean methodologies. Next, the idea is to introduce only those most relevant digital technologies in this process to help automate repetitive tasks like inventory/order management. Just doing these two things can create significant business results. But none of this activity will have an impact if digital tools are built on a procurement value stream that is not first optimized using lean. When we apply lean thinking to our work design, we are ensuring that our “digital transformation” will be effective. Solid lean work design amplifies the impact of new digital tools.
This is where True North Solutions can help. Only a digital transformation layered on top of sound lean principles is worth the investment. We offer a unique 5A Lean Digital combo framework designed to help leaders and teams make digital technologies work for them, unlock value, and deliver for customers… again and again.