Global business sectors have significantly benefited from the widespread adoption of digitization. Business operations that were formerly time-consuming and difficult have become substantially simpler. Aside from that, technology has made it possible for businesses in a range of sectors to develop digital infrastructure and pursue optimum effectiveness.
Although practically every business sector has implemented some digital initiatives, conglomerate organizations have the greatest demand for them. To effectively manage their various business areas, these organizations already make use of a basic set of shared services. It can be difficult to manage the business strategies for all the business units efficiently, despite the fact that these shared services are somewhat beneficial in managing the business. It can be challenging to track performance across all business divisions, ensure local compliance, and close technology gaps, to name a few of these difficulties. Therefore, if conglomerate organizations are to provide results that are effective, it is more than necessary that they incorporate digital initiatives into their working.
Challenges faced by Conglomerate Firms
Uncoordinated management: Due to the lack of a standardized framework for managing initiatives in line with the company’s strategy, various business units manage their operations in ways that may or may not be in sync with those of the other units. This causes a bad work management system that hinders the organization’s ability to complete tasks effectively.
Hampers consumer loyalty: Customers are confused as a result of the many ways that different business units interact with them utilizing different platforms. This ultimately makes it more difficult to engage the customer and, as a result, undermines customer loyalty.
Lack of coordination: Conglomerates may have various business divisions, each of which may see the organization from a different angle. Less coordination and opportunities lost as a result could necessitate new methods for leveraging the appropriate data to guide decision-making.
Conglomerate Firms and Digital Initiatives
Gather business insights: Insights from many business units can be acquired and merged into one data set with the use of the proper digital technologies, which can then be used to make better business decisions. Not only that but the obtained data may also be used to match it with the needs of the conglomerate, which can once more result in effective outcomes.
Detailed customer data: You can better plan your marketing and sales strategies when you have precise customer information. In reality, these consumer insights aid companies in learning more about their target market, what they want, and how to meet their demands. It can be challenging to collect and preserve the data manually. Here is where digital technologies come into play, as they make it simple to manage and maintain client information.
Efficient project management: Effective project management across all business units is essential for conglomerates. Furthermore, a number of digital initiatives can assist in achieving effective project management. By doing this, they will be able to organize their work appropriately and guarantee that projects are finished on time and without any kind of delay.
Combining KPIs: Every business unit may have a different key performance indicator, and it is imperative to match those indicators with the conglomerate’s overall goal. For effective results, this also means that broad projects should be in line with corporate strategies. As a result, a quantifiable indicator to track the accomplishment of the target is produced to keep a tap on the strategies all over.
Digitalization has proved to be a boon for all the business industries. Especially for conglomerate firms that incorporate various business segments, digital initiatives have been deemed to be extremely beneficial. Previously, Ineffective management and a lack of coordination plagued the conglomerate companies, resulting in a drop in client loyalty. Despite the fact that these companies were already using a basic set of shared services to run their business operations, they were insufficient to achieve strategic management of all business divisions. However, with the advent of digital initiatives, it became simpler for conglomerate organizations to periodically obtain business and consumer insights and combine the KPIs of all the business divisions to reach desired outputs and focus better on growth and overall organizational goals.
The above article is authored by Mr. Gurdeep Singh, Founder & Chairman of Jujhar Group