Many companies already rely on AI-enabled services but have yet to apply GenAI at scale. With Australian CEOs feeling the pressure to adopt AI, a word of caution: most organisations lack the necessary infrastructure, data management and workforce capabilities to sustain AI initiatives successfully. To close the gap between ambition and execution, businesses must prioritise building a solid digital foundation. This includes comprehensive data strategies, scalable cloud solutions and a culture of continuous learning.
The importance of data quality cannot be overstated: AI learns from data. If your data is incorrect, incomplete or inconsistent, your AI predictions and insights will be flawed or biased leading to poor decision-making and lost customer trust. Investing in data and AI is identified as a key pillar for business model reinvention in PwC’s 27th Annual Global CEO Survey - Australian insights. It unlocks benefits that can catapult organisations into a new realm of competitiveness.
3. Navigating volatility and change: Businesses face ongoing volatility due to weakening economic conditions, high living costs, low wage growth and rising unemployment. Geopolitical tensions exacerbate this instability, affecting global economies, stock markets and supply chains.
How can you lead your organisation through these unprecedented times and emerge ahead of your competitors?
- Business model reinvention: Leaders must navigate these challenges with a focus on growth and adaptation. Our 2024 Annual Global CEO Survey highlights the urgency of this need, revealing that 45% of global CEOs — up from 40% in 2023 — believe their company will not be viable in 10 years if it continues its current trajectory. To address these challenges, a fundamental reconfiguration of business models is essential to enhance efficiency, competitive differentiation, customer engagement and productivity.
- Addressing inefficiencies before replatforming ensures only essential processes are migrated, reducing complexity and risk. Enhancing data quality and integrity before migration sets the foundation for effectively utilising the new platform’s advanced capabilities. PwC’s Optimisation Diagnostic can be rapidly deployed to identify quick optimisation levers that reduce subsequent technology build cost and complexity.
- And finally, don’t overlook your customer experience (CX): Persistent inflation will continue to impact consumer spending, leading customers to seek greater value. Maintaining a strong focus on CX is vital for retention, especially during economic downturns.
The hypothesis that CX leaders outperform laggards holds true over the past 13 years. From 2007-2019, CX leaders generated returns 3.4 times greater than laggards.2
Executives often blame customer loss on price, but the primary reason is poor experience. A single poor experience drives away 37% of customers, with this figure rising to 73% after multiple bad experiences, especially among younger generations.3
Organisations must maintain a relentless focus on customer experience and use automatic tools and feedback loops to quickly address service quality declines and prevent customer attrition.
The Australian service centre landscape has always been dynamic, but the pace of change is now faster than ever. Evolving customer expectations, technological innovations and ongoing volatility may become overwhelming if not carefully understood or considered. Success will depend on a clear understanding of these forces and a thoughtful approach to adapting to them.
