The digital transformation is an aspect that all business organizations are betting on to increase their growth and adapt to new market trends. Technology is a great ally to cut unnecessary expenses and keep the budget under control. The digital transformation and its convergence with digital strategies as a whole, covers the operational, strategic and management areas where:
- In the operational sector, the use and integration of digital technology tools, the transformation of processes, the digitalization of documents, the change in the processing of data in the cloud, as well as the optimization of processes in general can be observed.
- In the strategic sector there is a notable change in the way of working, focusing more on consumer needs to make more assertive decisions and create value solutions.
- The management aspect summarizes the evolution of the company’s business model, which takes advantage of the commercial and productive opportunities created by digital adaptation.
Digitalisation is not a journey made to measure as each sector has its own peculiarities. A clear example is the transport sector, where digitisation has given rise to new models: Uber, Cabify, models of non-ownership and use of vehicles for days and hours, such as carsharing services, or with even more radical possibilities for change, as Google is trying to do. These models propose to car manufacturers that the digital component be expanded to new automated functions such as insurance, service requests and others.
Technology and business productivity
Companies are constantly searching to improve the efficiency of their processes, and technologies are allowing their application in countless situations in the business world. The improvement in productivity is generated in three ways:
- Reducing time in the execution of processes.
- Eliminating or substituting total or partial tasks within those processes.
- By incorporating new functionalities that add value to the existing process.
Achieving disruption requires raising cost savings above 40%, since lower levels will be ineffective against the changes introduced by new digital companies, which with new products and levers of the supply chain 4.0 achieve disruption and very high potential savings, increasing services with less investment.
The traditional ranges of productivity improvement of 3 to 5% per year, have been overwhelmed by digitalization, with demonstrated potential for cost improvements well above 25%, incorporating approaches to remote monitoring and robotization, and through process optimization placing the improvements in labor costs in percentages above 60%.
In this way, initiatives such as document automation or digitalisation and cloud storage could provide advantages such as
- Speeding up time spent on mechanical tasks.
- Optimize processes.
- Saving material costs.
- Immediate access to information digitally, from anywhere and at any time.
- Reduce the environmental impact.
Key aspects of reducing costs with technology
Reducing costs is, for all companies, one of the main objectives. It can be said that the maxim in the business world is to achieve maximum profit at the lowest possible cost, and the use of sustainable technologies also helps to save money.
Below we list some key aspects in which a company can reduce costs:
- Installing software capable of centralizing the entry of information from each area and making it available to the rest of the company in real time, have become the best weapon to make the right decisions to reduce costs.
- Betting on the cloud. Your information can be securely hosted on a cloud-based system, which allows savings of up to 50% compared to traditional physical infrastructure management.
- The Internet of Things. By introducing the IoT, we can implement systems in which each machine has the ability to measure and communicate all variables for analysis. This allows us to anticipate maintenance and reduce interruptions.
- Automate tasks and processes of each department so that management becomes more fluid and efficient.
- Reduce margins of error. Some of the avoidable costs a company incurs are due to human errors. Reducing them to their minimum should be one of the purposes of the company’s managers.
- Managing inventories better, through the use of appropriate software, will allow the company to improve the reliability of the inventory.
- Reduce machine and employee downtime. Breakdowns or errors in work orders can lead to missed deadlines and decreased productivity and quality.
- Negotiate with suppliers. Another advantage provided by technology is the database it generates, whether it be of orders, delivery time, etc. This information provides the company with the ability to negotiate with national or international suppliers.
- Personnel costs. Manage the scheduling of interventions that can avoid unnecessary trips that incur over costs.
- Energy costs. Among the biggest expenses incurred by any company is the energy bill. Digital technology makes it possible to comply with maintenance schedules and keep systems and equipment in optimal conditions.
- Manage payments and collections well. A good management software, which includes work order control tools, will offer us the detailed picture of the budgets generated at each moment, avoiding the errors that may appear.
- Stationery and administration. The handling of a document manager that allows to have the information centralized and digitized will allow to save not only what the paper itself costs, but also in stamps, toner and personnel.
Retain contributes to the reduction of business costs
At Retain we provide complete EAM solution tools for Strategic Enterprise Asset Management, driving the digital transformation of the asset lifecycle, offering a set of applications with global systems aimed at improving efficiency and reducing costs of the company.
- Project Management
- Maintenance Management
- Energy Management
- Environmental Management
- Campaign Management
- Legalization Management
Do you want more information? Contact us without obligation.
