Capacity ahead of demand is going to be the future for many organisations.
The strategy of building up capacity ahead of demand is a risk-taking stance. Investments are based on projections. This involves costs for new facilities, equipment, human resources, and overhead. If the demand materialises, the investment is worthwhile since the firm may capture a large portion of the market share. If it does not materialise, the firm must redirect the invested resources.
This digital strategy is most appropriate in high growth areas. If the demand materialises, but the capacity planning strategy is risk averse, i.e., building capacity only as demand develops, then most likely market share will be lost. The growth in demand will encourage new entrants, resulting in more competition. The risk averse strategy may be most appropriate for small firms that cannot afford to invest in unproven prospects. To prevent potential loss of market share, firms may choose to incrementally increase capacity to match the increase in demand.
Digital initiative or technological tools play a vital role in reducing risk as well as cost factors to meet increasing demand. Something good to help you grasp the concept is this video about what Changi Airport Singapore has been working on.
Whether you are a large- or small-scale organisation, below are some tips that would help.
1. Reduce the usage of paper
Fully tapping on cloud software or applications that reduce human errors as well as wastage of paper helps lower costs and has the benefit of creating a greener world.
2. Humanise technology interactively
Having said that, what this means is not merely cutting off human interaction. When systems or applications are implemented across stages in the organisation, these measures mean effectively carrying out each individual role to build a feasible User Interface (UI) and User Experience (UX) that will provide yields in the long run.
3. Plan ahead of expectations
Whether you are a small or large organisation, growth can’t be expected unless your organisation is well prepared with Big Data analysis that can measure projections in years ahead. That is why it is very important for organisations to fully embark on digital measures by utilising technological tools that empowers your business requirements.
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Written by Jonathan Chan, Contributed by Anna Tan
