As we are amid the huge crisis induced by the coronavirus, the concerns among the technology industry have sparked regarding who can emerge victorious in the post-pandemic future, and how?
As RPA or for better terms Intelligent Automation is being touted as the recession-proof technology, can it really help companies face crisis well?
How new-age technologies like this help steer the industry out of upheaval is yet to be fully discovered. As of now, what we can do is to look for answers in history.
We can then analyse how some companies were successful in defeating recessions of the past.
Analysing the corporate strategy and shifts data of past major global recessions, the 1980 crisis (which lasted from 1980 to 1982), the 1990 slowdown (1990 to 1991), and the 2000 bust (2000 to 2002), the Great Recession of 2008, HBR’s 2010 study revealed that, only a small number of companies—approximately 9% of their sample—flourished after a slowdown, doing better on key financial parameters than they had before it and outperforming rivals in their industry by at least 10% in terms of sales and profits growth.
1. RPA: A PROFITABLE STRATEGY
FOR POST-RECESSION
ABHINAV SABHARWAL RPA & AGILE TRAINER @ SCHOOL OF RPA
P.H: 9004809189 EMAIL :SCHOOLOFRPA@GMAIL.COM
2. WHAT WE WILL COVER IN THIS VIDEO PRESENTATION
1. Introduction
2. Learnings from the Past
3. post-recession winners
4. Striking an Elusive Balance
5. Implementation in Current Scenario
3. INTRODUCTION
• As we are amid the huge crisis induced by the coronavirus,
the concerns among the technology industry have sparked
regarding who can emerge victorious in the post-pandemic
future, and how?
• As RPA or for better terms Intelligent Automation is being
touted as the recession-proof technology, can it really help
companies face crisis well?
• How new-age technologies like this help steer the industry
out of upheaval is yet to be fully discovered. As of now, what
we can do is to look for answers in history.
• We can then analyse how some companies were successful in
defeating recessions of the past.
4. LEARNINGS FROM THE PAST
• Analysing the corporate strategy and shifts data of past major
global recessions, the 1980 crisis (which lasted from 1980 to
1982), the 1990 slowdown (1990 to 1991), and the 2000 bust
(2000 to 2002), the Great Recession of 2008, HBR’s 2010
study revealed that, only a small number of companies—
approximately 9% of their sample—flourished after a
slowdown, doing better on key financial parameters than
they had before it and outperforming rivals in their industry
by at least 10% in terms of sales and profits growth.
5. POST-RECESSION WINNERS
• These post-recession winners aren’t the usual suspects. Firms
that cut costs faster and deeper than rivals don’t necessarily
flourish. They have the lowest probability—21%—of pulling
ahead of the competition when times get better.
• Businesses that boldly invest more than their rivals during a
recession don’t always fare well either. They enjoy only a 26%
chance of becoming leaders after a downturn.
• And companies that were growth leaders coming into a recession
often can’t retain their momentum; about 85% are toppled
during bad times.
• We have had classified companies and their approaches to
managing during a recession into four types:
1. Prevention-focused companies – which make primarily defensive moves
and are more concerned than their rivals with avoiding losses and
minimizing downside risks.
2. Promotion-focused companies – which invest more in offensive moves
that provide upside benefits than their peers do.
3. Pragmatic companies – which combine defensive and offensive moves.
4. Progressive companies – which deploy the optimal combination of
Defence and offense
6. STRIKING AN ELUSIVE BALANCE
• Companies that master the delicate balance between cutting
costs to survive today and investing to grow tomorrow do
well after a recession.
• Within this group, a subset that deploys a specific
combination of defensive and offensive moves has the
highest probability—37%—of breaking away from the pack.
• These companies reduce costs selectively by focusing more
on operational efficiency than their rivals do, even as they
invest relatively comprehensively in the future by spending
on marketing, R&D, and new assets. Their multipronged
strategy is the best antidote to a recession.
• The companies most likely to outperform their competitors
after a recession are pragmatic as an expert defined the
term:
• The CEOs of pragmatic companies recognize that cost-
cutting is necessary to survive a recession, that investment is
equally essential to spur growth, and that they must manage
both at the same time if their companies are to emerge as
post-recession leaders.
7. IMPLEMENTATION IN CURRENT SCENARIO
• As the situations are degrading, one might argue that hyper-
automation investments are a luxury that cannot be
afforded as today’s harsh reality is many companies are
slashing pay, furloughing workers, and taking drastic
measures to reduce costs.
• However, some do believe that by streamlining the small
order processes and shifting that work to software robots
will allow people to focus on giving a better experience to
the most important customers.
• Hyper-automation technologies, such as RPA, task mining,
and process mining, are tools that were not available to
leaders during the past recessions.
• Recession winners this time around will use this technology
to make bold decisions about where to selectively reduce
costs—using the same for less strategy—but also choose
where to go on offense with the much more for more
strategy.
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