In today’s fast-paced business landscape, it is crucial for organizations to understand how to leverage technology to drive productivity and financial performance. Why? Productivity is a key differentiator, as it allows organizations to maximize their outcomes (effectiveness) while minimizing the costs (efficiency) required to achieve these outcomes. Many companies, however, fail to understand the full impact that technology has on productivity and how to maximize technology’s productivity to drive value. In our new report, TIER: Emerging Technologies Are Fundamentally Changing Productivity, we highlight: 1) how your tech productivity formula must include effectiveness; 2) how to be strategic with your tech investments to maximize value; and 3) how growing operating capacity plays a role in major gains in productivity.
In this report, we provide an example of an organization that leveraged AI and automation to enhance its productivity. In fact, when thinking about examples of companies that have successfully leveraged technology to enhance productivity, does Tyson Foods spring to mind? Probably not. But to the surprise of some, after reporting an operating loss of $625 million in fiscal year 2021, Tyson Foods launched a productivity program designed to “drive a better, faster, and more agile organization that is supported by a culture of continuous improvement and faster decision-making.” Tyson committed over $1.3 billion over three years to automation and AI, including automating parts of its processing-plant production line. Astonishingly, by the end of 2022, Tyson had already realized over $1.1 billion in additional operating capacity. In fact, during its first year of the program, the company saw a 13% rise in revenue as the intensity in capital and labor required to achieve that growth slowed.
This blog falls under Forrester’s tech insights and econometric research (TIER).