Lean Business. Now there’s a new buzz term that’s making its rounds at the boardroom table. To keep up with economic times, companies are needing to find ways to save on spend, maximise their resources, and provide the highest value to customers. Business owners and leaders have had to innovate and work harder than ever to stay ahead and implement strategies to grow and scale in a disciplined and sustainable way.
“Lean Business” is an excellent framework and model for leaders to use to improve on processes across the greater value stream – simply put, Lean Business is the process of minimizing waste, time and resources and maximising output and value. The concept started out in the manufacturing space and was created by Toyota in 1930. Not only did Toyota eliminate their waste by implementing a Lean model, but they were able to minimise faulty products reaching the market. Today, thanks to Digital Transformation, several steps in their manufacturing process are automated like quality control and evaluation which reduces human error and in turn provides a higher value and quality product to their customers. The Lean Business model has now been replicated worldwide and across all industries.
As the world becomes increasingly digital and economies are primarily based on information technology, business owners and leaders are urged to consider the role of Digital Transformation in their Lean Business. Companies can use digital technologies to streamline processes and increase efficiency to align with changing business requirements and take their organisation to new frontiers. Things have certainly changed since the thirties, with the rise of smart phones and email. Today we look at LEGO, for example, and how they have utilised Digital Transformation for a Leaner Business – from introducing video games for brand awareness which has seen an increase in sales, to creating a website for customers to propose block set ideas – there are tons of ways your business can gain from the revolutionary power of Digital Transformation.
Digital Transformation requires an investment of time and money but the cost of adding new technology and implementing it the right way will ultimately pay for itself. Your company will soon see the benefits of going digital, which could include data-based insights; streamlined business processes; elevated customer experiences and an innovation-driven culture.
In order to go lean with your business in 2023, here are the top 4 Lean business hacks for optimal output:
- Define a clear Lean vision and execution plan
Determine what your main objective is for implementing a lean business model and identify what resources you would need to achieve these objectives. Resources would include technology, talent, and quality of data for valuable insights.
- Create and share knowledge
Continuous learning for long term productivity is key in Lean business. It is paramount to create an infrastructure where learnings can be shared amongst teams and departments, so knowledge and insights are held by more than one person.
- Expand your ecosystem
Depend on trusted partners who are experts in their field – they have the skill to advise on the best strategy for your company and they are also best equipped to assume industry trends which in turn, could help future-proof your business.
- Assess and refine
The strategies you put in place need to be agile – they need to allow for flexibility. Lean transformation is a journey and if you hit a speedbump on the way to progress, you should be able to amend and adjust accordingly.
As a leader, take charge of what resources you have available and use them effectively to optimally reach your objectives. For more business insights on Lean Business, download your free copy of Tower Group’s latest White Paper, “Leaning into Efficiency”, now available on the website.
