How Does Digital Transformation Save Costs?
Business Development Manager/ October 13, 2020
A digitally mature business can do wonders when it comes to delighting customers. That’s because such a business is able to save the energy of its team and channelize it more creatively towards strategy, marketing, and improving customer experience.
The costs that are saved in mundane and unproductive tasks through digital transformation, can be utilized towards customer acquisition. However, ideally one must aim beyond the obvious digital transformation benefits.
Here are some broad ways to demonstrate how digital transformation saves different types of recurring costs within a business:
• Reducing margins of error:
Businesses incur exorbitant costs due to human errors, and we are not just talking about accounting. There’s a tone of activities related to sales, marketing, promotions, advertising, or operations that can be expensive should there arise any errors. Digital transformation reduces such errors by up to 90%.
• Reducing machine and employee downtime:
Missed deadlines or downtimes can cost any business greatly. With automation and digitization, businesses can reduce breakdowns, automate customer care or technical support through a digital transformation agency and increase productivity.
• Better negotiation with suppliers:
Supply chain management is another area that can get expensive for businesses if they are not equipped with the right information about work orders, purchases, and other operational costs. With technology, the business gets equipped with an organized database of suppliers and supply chains. This enables the business to negotiate with national and international suppliers better.
• Energy costs:
Digital technology helps in compliance with maintenance schedules and keeping systems and equipment in optimal conditions. This saves the company in its energy bills significantly.
• Personnel costs:
Several processes within personnel management can be automated with digital technology. Right from recruitment to training, in-house promotions, HR management – the company can save significantly on its overheads on people.
• Increased agility:
Digital transformation makes organizations more agile when it comes to time to market. This accelerates innovations, improves delivery of the projects/products and services, and brings in better customer satisfaction. By hiring a digital transformation agency, a lot of loads can be shed off from the in-house personnel making them more efficient.
To undergo digital transformation completely, partially, or in parts, it’s important to consider the following questions:
• What’s the larger goal in bringing about a digital transformation?
• What are some of the unproductive/redundant processes in your business?
• How will digital transformation delight your customers better?
• What are some manual tasks that incur exorbitant monthly costs?
• What kind of revenue growth are you expecting through the digital apps or tools that you wish to install?
If you wish to keep your company ahead of the competition, it’s best to embark on a journey of digital transformation. Today companies that have automated unproductive tasks and adapted technological ways of handling business operations can engage their customers better. We can help your company smoothly transition through our digital transformation consulting. Do talk to us.