Digital transformation is rapidly changing all three levels of private equity value creation. Many PE firms are already betting on what I call the digital value creation trifecta. Here’s how.
First, let’s take a step back. For those new to private equity, there are basically 3 ways PE firms generate outsize returns, which is called […]
During the disruption digital transformation is accelerating for many companies. Tactical projects are sidelined and companies that are watching the digital transformation from the sidelines are increasingly left behind.
My discussions on digital transformation in private equity circles shifted significantly. For many PE firms, digital transformation became a lot more pressing and short term.For the […]
In the last few weeks, I noticed that the private equity digital playbook is changing, What initiatives are given priority in a crisis?
When I started with private equity value creation it was 2009, the height of the last recession. This was the time when private equity firms got more hands-on with their portfolio companies […]
For a digital project to make an impact, it has to move the needle. But do you know how your business keeps score?
Traditionally, success is measured through revenue, profitability, return on equity or EBITDA– but these are lagging indicators and not directly controllable. Many boards and CEOs use specific KPIs that more closely measure […]
I had the opportunity to observe dozens of PE operators guide projects in their portfolio. I believe there are lessons from the relentless value focus of private equity that can make our digital projects better. So here is what I learned from PE about running more impactful transformations
#1 MAKE IT REAL
We need to […]
This has been the year where many private equity firms started adopting robotic process automation at scale in their investment theses. After the first six months of the year, there are a couple of best practices emerging from our engagements in private equity:
#1 Start with finance to gain experience […]
Robotic process automation (RPA) also called Digital Workforce (DWF) software takes the mundane repetitive tasks and automates them to free up human workforce for more fulfilling jobs. Increasingly the types of tasks move beyond data entry and reconciliation to more cognitive tasks like process analysis, reporting, and even basic decision making that fit predefine tolerance […]
Planning is a risk reduction tool, not a value creation one. To create value, you have to have real commercial interactions in the market. Market feedback better informs strategy than brainstorming sessions ever will, yet companies may pay millions for strategy consultants but not the same amount for limited product experiments.
A friend of mine […]
I had an interesting and unexpected debate on the sidelines of a private equity conference last week in London. It was fascinating because the topic was automation and the protagonist, a hedge fund manager.
For years there have been arguments in various corners of digital advocacy about the future of digital enterprises comprised of mostly […]
In recent years many PE operating groups noticed that acquired companies already had better processes and leaner operations than a decade earlier, especially in larger enterprises. While sourcing programs and improved sales effectiveness still provide benefits, many targets already have good procurement disciplines and most run a form of CRM or various e-commerce tools. More […]