PwC: Evolve with technology – or be left behind
Technology is everywhere and it’s evolving fast. Every day, there’s a new app, a new system or a new AI tool. It’s hard to keep up.
By Dr Frances Wright, Associate Director, PwC South Africa
Technology is everywhere and it’s evolving fast. Every day, there’s a new app, a new system or a new AI tool. It’s hard to keep up. It can feel overwhelming. But ignoring it isn’t an option and companies that don’t adopt it will fall behind – and fast. It will be like a company still doing their accounts in a hard copy ledger book instead of using cloud-based accounting software. It can even be equated to somebody traveling from Johannesburg to Cape Town on horseback. Trying to keep up without embracing technology is like navigating modern business with yesterday’s tools – it simply doesn’t work.
Why businesses must evolve
To remain competitive and profitable, businesses must evolve. That means it is necessary for businesses to streamline and optimise operations, improve productivity, reduce costs and match demand with supply. Not through oversupply or excess stock, but through fine matching that will see every order fulfilled without any waste or cash trapped in excess stock.
Achieving this requires a strong foundation in technology – both industrial and information-based. From accurate forecasting and inventory management to material requirement planning and tracking forecast errors, every step must be data-driven. This includes the use of computer-aided design and production tools or industrial technology, such as robotics.
Additionally, financial systems and customer relationship management software, combined with distribution and route planning systems, must be employed. Together, these technologies form a well-organised automated engine to produce the service or product in the most cost-efficient and effective way, according to customer requirements.
AI in action: The transformation has already begun
PwC’s AI in Operations: Revolutionising the Manufacturing Industry explores how technology is helping businesses tackle a range of operational challenges. In many sectors, technology is already enabling entirely new business models. For example, traditional forms of artificial intelligence (AI) have transformed logistics – making omni-channel retail possible through efficient and trackable package delivery.
Generative artificial intelligence (genAI) is also bringing a new wave of disruption. Software code is now being written by genAI assistants, customer service is being delivered by chatbots and media content is being created by genAI models – helping supervisors perform their tasks more efficiently at a greater speed. Agentic AI also allows agents to autonomously execute tasks like ordering spare parts or adjusting a production shift plan.
These aren’t future possibilities – they’re happening now. And they’re redefining what’s possible in business.
However, the cost of continuously staying up to date with technology, while also driving improvement and maintaining compliance across multiple fronts, can be astronomical. With so many options available, it becomes critical to identify which systems are not only effective and affordable but also scalable as the business grows. This is why technology forecasting must go hand in hand with strategic planning before acquisition. The first step is to truly understand the source of the competitive advantage to the business together with the sources of threats. Only then can technology be planned strategically. It is also important to monitor trends without blindly following them. Too often, businesses invest heavily in “the new best thing” that fails to deliver any real value in terms of profitability or efficiency.
Execution matters
Knowing when and how to invest in technology requires careful planning and budgeting, starting with a clear understanding of both business and technology objectives. These objectives must be fully aligned, so much so that they merge into one set. Every new implementation brings about change in the organisation bringing with it the need for new skills and capabilities. The probability of acquiring the necessary skills or upskilling existing technology drivers, along with user acceptance of the new system, must be carefully assessed and considered. There are early warning signs that signal potential rejection or resistance to change. The most important is the lack of engagement from top management coupled with a lack of interaction with users and drivers.
The implementation of new technology should be handled like any other project with a clear project plan outlining the scope, timelines and deliverables. Like any other project, the goal is to deliver within the timeline and within budget. This is easily done when dealing with a single enterprise resource planning system switchover. However, when considering the company as a whole, integrating HR software, factory floor systems and other technologies significantly increases complexity. This is mainly because data must flow seamlessly between systems, requiring automatic uploads and sound integration, demanding careful planning and budgeting.
Embrace the change
The rapid evolution of technology is no longer just a trend. It is a defining force. For businesses, it presents both opportunities and challenges. Embracing technological advancements is not just an option but a necessity for staying competitive and efficient. Success doesn’t come from adopting technology blindly. It requires strategic planning, careful selection of systems and continuous monitoring of trends. Businesses must align their technological objectives with their overall goals, ensuring that every implementation is well-planned and supported by the necessary skills and engagement from all levels of the organisation. By doing so, companies can harness the power of technology to drive growth, improve efficiency and maintain a competitive edge in an ever-evolving market.
The future belongs to businesses that don’t just react to change – but anticipate it, plan for it and lead it. Start now. Plan boldly. Execute wisely. And let technology be the engine that drives your competitive edge.
Contact us
Dr Frances Wright
Associate Director, PwC South Africa
Tel: +27 (0) 72 112 4688