CFOs and financial leaders have endless decisions to make, and each of these must ultimately support the financial performance of their business. In recent years, CFOs have become increasingly involved in making decisions that support an organisation’s digital transformation.
This is especially true in maritime, where shipping companies are increasingly turning to digital solutions to optimise different aspects of a voyage. The value of these solutions might be clear to one working in the operational department, but for the finance team, the benefits may be less clear-cut. This is especially the case within the turbulent maritime landscape and unpredictable economic climate. Deciding which solutions to invest in, and which to avoid and identifying the challenges in involved can be far from straightforward.
After identifying the challenges and deploying the solutions, it’s crucial to reflect on the entire process and assess potential improvements for future digital solution implementations. This involves continuously monitoring and measuring performance to determine if the solution met its objectives, such as streamlining operations, enhancing efficiency, or reducing costs. Gathering data and insights through continuous monitoring is essential to understand the effectiveness of the solution.
If the solution falls short, it’s important to analyse the underlying reasons, whether it’s a lack of user adoption, technical issues, or misalignment with business goals. Identifying these factors allows for informed adjustments, ensuring that digital solutions effectively address current challenges and are optimised for future needs. This iterative process of continuous improvement is key to achieving long-term success in digital transformation initiatives, driving sustained progress and innovation.
There are many stakeholders involved in a ship’s single voyage. This means that any digital solution implemented will have an impact on multiple people or departments. It’s important to understand if and where it has helped and hindered operations, and how this affects the future deployment of digital solutions.
Some factors to consider when assessing the performance of a digital solution and its role in the future include:
- The scalability and customisation of the solution
Is the solution able to be scaled to other departments? While it might work well in one area, it may work less effectively in another. The solution may also be less applicable if a ship’s operational profile changes. It’s important to determine whether the vendor can customise the solution to ensure its
value remains, no matter if the operation or voyage of a vessel changes.
- Future integration
It’s important to reflect on the ease of integrating the solution, especially if you plan to scale or integrate with other legacy systems. Recognising these issues as early on as possible in the implementation process can reduce the risk of compatibility issues, data silos, and inefficient workflows.
- Human factors
One of the most important factors in the success of a digital solution is the people using it. During the reflection phase, it is vital to ascertain the level of confidence users have with it. Was it received well immediately, or did it take some getting used to? How much training was needed and was it enough, or could more targeted training improve its performance? Making changes to the way people work is always going to cause some tension.
However, if those who are expected to use the technology understand why, they are more likely to engage with it, thereby maximising its potential. If there is a reluctance to engage with digital solutions, this should be addressed before any other solutions are rolled out.
The maritime industry’s financial leaders are faced with a sea of rapid technological and regulatory change, a lack of access to real-time information, questions around digital system integrability and operability, and the ongoing challenge of balancing financial constraints with the demands of the business. Combine this with the many stakeholders involved in a single ship’s voyage and the niche environment that it operates in, and it can be a challenge to determine if and how investments in digital solutions will bring a good return.
In the final two articles of this series of twelve, we will delve deeper into the recommendations that we believe will help in overcoming these challenges. For a more detailed insight and understanding on this please refer to our report in partnership with Marcura, Navigating New Financial Seas. The full report can be downloaded below:
