As we all know, competition between businesses is generally good for customers. It helps drive competing companies towards delivering better quality products and services whilst keeping them at the right price. Competition can also drive innovation and help businesses discover better ways of providing certain products and services.
In this blog, we explore what increased competition means for professional services companies and the impacts it can have, including:
- A drop-in demand for your services, resulting in losing customers to competitors
- Increased demands on your project management team to achieve better results
- Potential loss of talent to your competitors or significant pay rises in order to retain highly rated resources within your business
- Eroding margins in competitive scenarios
To counteract each of these challenges, companies must look at their current and prospective client base. This will help them work out how to effectively manage resources, skill sets and projects, which will lead to:
- Developing the right solutions for profitable clients in viable industries, thereby winning more opportunities and retaining current clients
- Providing project management excellence and increased client satisfaction, again helping to retain clients
- Finding the right project mix within the client base, resulting in better resourcing and staff satisfaction
- Closer management of backlogs and attention to types of projects won, resulting in more efficient, profitable projects
Benefits of digital transformation for the professional services industry
In a time of increased competition, the question is – how do you change the way you work and find the information needed to address the challenges? It’s often difficult to see the wood from the trees when you are dealing with a range of clients and projects; often you’ll spend the day trying to keep the business running.
However, with digital transformation and the right business tools – such as an ERP system for the professional services industry – companies can:
- Hold off the competition – make better and more informed decisions by assessing project risk. This can be based on a single, real-time view of over-budget projects, unmet milestones, unpaid invoices and pending proposals.
- Manage projects effectively – deliver the work on time and under budget to meet customer expectations. Whether it’s estimating, budgeting or scheduling the project in a way that meets the delivery date and profit goals, clients require flexibility in their project delivery models.
- Optimise your project portfolio – gain effective forecasting and visibility into more than the details of a single project. Professional services companies must also be able to manage pipeline, resources and materials across all active and future projects.
Our previous blog takes a detailed look at what digital transformation is and how can it add value to your business, which you can read about here.
Ensure your business stays competitive
Going through a digital transformation process and adopting new technologies may seem like a daunting prospect. However, in today’s world, it’s the only way that companies can stay competitive. It also provides the opportunity for professional services companies to look at the way they work and challenge themselves to become more agile.
These improvements will ultimately help them achieve project management excellence and increase client satisfaction.
Wondering how to improve business agility? Check out our checklist where we cover the steps to becoming a more agile business.