Whatever your sector of activity, staying profitable is always a priority. Reducing overhead costs is essential to achieving this goal, and most of the advice for doing so nowadays is technology-based.
But invest in new technology This may seem like a luxury that companies only commit when they have capital to spend. However, in the current technology-driven landscape, the use and maintenance of your technology is essential to lower your business costs, increase your profitability, and enable your business to thrive.
It's not just about keeping up appearances. If you find yourself investing in the latest technology just because your competitors have it, you're hurting it. And you probably will not realize the real benefits of the technology you adopt. By helping you store more data and access it more efficiently by reducing errors in the manufacturing process, modern technology has more advantages than simply keeping pace with Jones.
The bottom line? Technology that improves efficiency will help increase the profits of your business. Follow the instructions below to integrate new technologies into your business to reduce costs, increase revenue or provide more value to your customers.
1. When it comes to wasteful technology, spend money to make money.
If you let your technology become obsolete, you could offer your customers a lesser experience and risk losing them to the benefit of a competitor with the latest tools. You can also make your business more vulnerable to cyber attacks. It is clear that to save money in the long run, you may need to spend money in the short term to update your technology.
Companies are turning more and more to the cloud increase their IT capabilities while eliminating some of their on-premise servers. Netflix did that it could expand its client base without having to invest in expensive infrastructure. This initial cost will save you money in the long run. In fact, almost 82 percent companies using cloud services claim that it saves them money directly.
Whatever new technology you are incorporating, make sure you have someone knowledgeable to help you get your money's worth. As SimplyClouds, a provider of enterprise cloud services, points out"Software is expensive and, without technological expertise, many business owners end up with shelfware computing." This expert can be a member of your team, a consultant or, in the case of technical services like the cloud , the support staff of your business partner.
2. Use technology to streamline processes.
Need to streamline processes to increase productivity? Daniel Wesley, founder and leader evangelist from Quote.com, suggests"Artificial intelligence is a good starting point because it offers the promise of unprecedented customer personalization without permanent human intervention. Artificial intelligence also simplifies the interpretation of data, thus providing an effective way to search for favorable areas in areas such as sales models and customer service. "
You can also use machine learning and AI to create products faster, with less manpower and fewer errors throughout the process. The San Francisco Creator's Restaurant This is a perfect example: employees are always needed, even if their number is small, because a robot is responsible for the entire cooking. A chef robot also means fewer mistakes and less risk of spreading the disease.
Predictive maintenance – a feature powered by the Internet of Things, which can help manufacturers prevent problems before they occur – is another opportunity to reduce costs through process improvements. In fact, a McKinsey Global Institute Report estimates that, by 2025, predictive maintenance could help businesses save $ 630 billion a year. DB Cargo, a German freight rail carrier, uses this method to identify problems with its earlier locomotives, meaning that its trains are out of service less often.
3. Use technology to give customers the service they need.
Do you want to improve your customer relations? Implement AI-based customer service tools guide consumers in their journey. You do not need to rely on a team of 24/7 customer service professionals to provide ongoing service to your customers with automated solutions such as chatbots. Just look at ICICI Bank, one of the largest banks in India, which uses automation of robotic processes for more than 200 banking functions, including retail banking and human resources management. As a result, the bank has reduced the response time of its customers by up to 60% while reducing its error rate.
Building strong relationships with your customers means interacting with them on multiple fronts, from marketing campaigns to sales, through customer service and support centers. As for the integration of artificial intelligence in your business, take into account the customer experience. Sephora, for example, saw a strong mobilization on the part of the cosmetics company, encouraging teenagers who were preparing for the graduation party to talk to their friends. personal assistant bot on Kik. The bot, in turn, provided makeup tutorials and product reviews.
After implementing or updating your technical solution, be sure to measure its success. Has your predictive maintenance solution reduced equipment downtime? Has your chatbot improved your customer retention rate? Reduces your staff costs? To assess the value of your technology adoption, identify the best measures to measure success and review these data after sufficient time to allow accurate evaluation. Whether the data indicates that you are on the right track or that you need a course correction, this will help you determine how to get the most out of your technology investment to increase the profits of your business.