Technology cost management for business
IT cost management today is a strategic and proactive method of increasing revenue growth. With a proactive approach to managing costs for technology, businesses can increase potential opportunities and open pathways for greater innovation. More opportunity and innovation provide the potential to improve profits by reinvesting costs.
The old form of cost management was a response to a business problem. When companies were short on funds, they performed layoffs, cut back on employee programs, or reduced company travel. Today’s digital busness understands that cost management must be proactive and reinvested into the business directly to stay competitive in a global environment.
This guide discusses the importance of defining a technology strategy to manage costs and improve opportunity and profitability proactively.
Assessing current technology costs
The first step to successfully leveraging cost management to improve business revenues is assessing current costs for existing technology. Most technology assessments involve an IT service or an internal IT team review of currently used technology within the business. The best teams to perform these assessments are IT professionals or leaders who know business network infrastructure and those who understand how the current technology is used.
Technology assessments vary in scope and depth. As part of a business strategy or plan, the technology purchased or licensed should be listed, including purpose, version(s), contractual information, and cost breakdown. By performing a thorough technology assessment, businesses understand their technology, its use, and the cost.
Additionally, an assessment identifies areas of potential improvements, like areas or functions where costs can be reduced or optimized. For example, instead of running manual accounts payable processes, consider streamlining the manual entry and processing with process automation software.
Why you need a comprehensive technology strategy
A comprehensive, detailed technology strategy isn’t a separate effort. Most businesses add the technology strategy to the overall strategic plan. The purpose of a technology strategy is to plan technology use over a period to improve business position and achieve business goals or objectives.
Creating a detailed technology strategy helps identify the technology the business wants or needs and aligns it with cost and business goals. This strategy guides the acquisition of select technology to provide the business with reduced costs and improved cash flow to invest internally. By investing in cost savings internally, businesses reap the benefits of new technology use and task optimization.
A technology strategy enables businesses to best leverage new technology quickly. Businesses can respond quickly to market demands and changes, offering improved services and products. An essential part of planning a technology strategy includes identifying the business capabilities that improve with technology. In other words, define what functions or products are improved and how those improvements impact business revenue.
As business goes increasingly digital, technology and business strategy become inseparable. Technology runs a modern business, so identifying the technology parts, roles, and purposes is critical for continued business success.
Building a cost-effective infrastructure
Building a cost-effective infrastructure often starts with changing the approach to IT management. Moving to cloud or MSP services can quickly change the business model and reduce costs that can be invested in product development. With a reduction in overall IT operational costs, the business can use the funds to purchase new technology that offers increased scalability and adaptability.
The digital business world changes rapidly - pivoting quickly and adapting as a business is crucial to continued success. Consider implementing ML (machine learning) and AI to generate information that can be leveraged to the business’s advantage. For example, predictive analytics help businesses understand the consequences of actions, including costs and what drives costs up or down. Businesses can forecast and plan long-term with increased accuracy.
Implementing process automation
Process automation technology is an example of creating opportunity through technology. By identifying tedious and repetitive tasks, businesses can opt to use technology to automate those processes effectively. Ensure the technology is scalable and customizable to fulfill your unique business needs. The greater the flexibility of the technology, the better the quality of the task automation.
There will be challenges with process automation. Some employees’ workloads or job responsibilities may change and require re-skilling. Many employees may be freed up to focus on more critical and difficult tasks. Plan to perform thorough testing to ensure tasks are performed accurately before going live with automated processing. Additionally, ensure automated tasks receive proper continuing oversight.
Improving resource allocation
A technology strategy can help improve resource allocation for optimal effectiveness. Another good place for predictive analytics is to understand resources and how to get the best value for both the business and the employee. Cost management of resources is important to business revenue, as is providing a positive work environment. The less employee turnover and turmoil, the more focus is on productivity and quality work.
Overcoming obstacles with Allari
The biggest obstacle to strategic planning of any kind is time. Employees and management must spend significant time researching and developing a technology strategy. In the business world today, you plan, or you plan to fail. Complex digital businesses need a technology strategy added to the overall business strategic plan for greater success.
Technology increases adaptability across the business. The more agile, the better a business can respond to any market environment and remain profitable.
Allari can save your business money by assessing the technology and IT infrastructure. Ensure your business uses its technology to the maximum with Allari.
At Allari, we provide your business process automation and cost management expertise. We’ll tweak your tech and transform your company – for the better!
Our 60+ specialists are experts in J.D. Edwards and 80 other business technologies, and they know them inside and out. Allari special knowledge and experience helps with your business needs, from day-to-day production issues to full-scale digital transformation projects and leveraging the power of business process automation.
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