• by Vikram Gajjala

Digital Transformation, Saving Cost & Time

Digital transformation is a major driving force behind the success of many firms. The main objectives of digital transformation are reducing, eliminating, and transforming processes that do not require a lot of human input. It mainly focuses on restructuring firms’ business strategies to create an agile environment that supports highly innovative processes. Digital transformation also places a huge emphasis on satisfying your customers effectively. Digitizing your business operations can help firms enjoy massive cost reductions of up to 90%.

In addition, it will also enable you to save a lot of time and resources and direct them to your business’s main core activities like marketing. If you're considering digitally transforming your business and saving cost and time, read on to learn what it entails and how to get started.

1. Digital Transformation Supports Resource Management Improvements.

The most successful companies continuously try to streamline their operational costs, reduce or eliminate the wastage of resources, and boost their bottom line. These firms are well-positioned to achieve these goals because they substitute their manual processes with software. The software provides insight into how each of their assets is performing, the specific cost drivers in their processes, and the causes of risk that can be found within their processes.

In addition, the software allows firms to analyze data reports and they can quickly identify problem areas and address them fast. Also, these firms can make more informed decisions by capitalizing on the high-quality data at their disposal. Responding to any arising contingencies is an important step contributing to cost reduction.

2. Digital Transformation Enhances the Overall Customer Experience. 

Digital transformation is critical in helping firms to improve customer experience. Technology is effective at assisting businesses to have a clearer understanding of their potential clients. These firms can conduct extensive research regarding their target audience by analyzing the customer data they come across on social media platforms. After that, these businesses can effectively respond to those customers’ needs with more agility and accuracy. Here, the companies will not waste any resources since they know the challenge and how to solve it. For example, if they identify that their customers’ main problem is poor customer service, they can apply strategies to satisfy their customers better. No funds will be wasted assuming another problem and solution.

So How Exactly Do Digital Transformation Save Costs?

As we have seen above, customer acquisition is one of the areas that stand to gain the most due to cost reductions in other areas of a business. This is because the money obtained from cost reductions can be directed towards satisfying your target audience effectively. Here are some ways that illustrate how digital transformation assists businesses in reducing, eliminating, or avoiding recurring costs.
 

1. Reducing Margins of Error

Human errors are some of the biggest contributors to a business’s costs. For example, if there are accounting errors during bookkeeping, your business can face losses or fines for unpaid taxes. Digital transformation can reduce human errors by up to a massive 90%.
 

2. Cutting down the machine and employee downtime

Automation can eliminate potential losses that may arise from missed deadlines. By digitizing its processes, tasks are performed more accurately, faster, and more efficiently. In addition, automating a process creates a platform where technical support and customer service are more reliable and of higher quality.
 

3. Better Deals from Your Suppliers

Automating the supply chain management process is another effective way of cutting costs. Digitizing this process ensures your suppliers have all the essential information regarding orders, purchases, quantities, and prices. With this database, you can negotiate with your suppliers for better deals. For example, you can compare the prices of all available suppliers on the database and select the products with the most competitive prices. If these prices were lacking, however, you be buying products from the most expensive supplier.

 

4. Reduced Energy Costs

Digitizing your firm’s operations means that your processes and operations are more likely to be compliant with all the maintenance schedules. In addition, automation will allow your equipment and systems to work optimally. Here, your company can save a lot of money that would have paid for energy bills.

 

5. Reduced Personnel Costs

Vital processes related to personnel management can also be streamlined to achieve reduced operational costs. Streamlining processes such as recruitment and training can cut costs significantly through automation and incorporating technology into these processes. Here, the firm can perform these processes more efficiently and cost-effectively.

 

6. Improved Agility

Digitizing your business’s processes promotes agility and significantly reduces the time to market. A reduced time to market supports faster innovation and improves the level of customer satisfaction by increasing the efficiency by which the products and services are delivered. If you do not have an idea of how to boost the agility in your business processes, hire the services of a digital transformation agency like Assay to help you get started.

Tools for Digitization

1. Cloud Hosting and Migration:

Today, more businesses and corporates store their data in the cloud. Cloud hosting helps firms centralize their operations and activities to enable information to be easily accessible from one source. This is what promotes cost reductions and also helps to save time.

1. Automation Tools 

Automation tools allow a business to thrive in the long term by lowering operational costs. In addition, automation tools are very effective at simplifying workloads and mundane tasks of a firm. The improved efficiency helps to boost productivity.

2. Team Management Tools 

Startups and enterprises increasingly use popular applications like Basecamp and Asana to manage their tasks, projects, and teams with greater efficiency at lower costs.

Final Take Away

Any business wishing to thrive in the current market has to digitize its operations. This is necessary to improve agility, boost operational efficiency, and significantly reduce costs.
The Assay has helped many different businesses over the years move to a digitized process system. Contact us today if you would like to help start or improve your company’s digitization processes.