Many companies are currently cutting costs, but adding more technology to your operations can help your bottom line.
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The Organization for Economic Cooperation and Development (OECD) has predicted that global growth will shrink by 6 to 7.6 percent in 2020 and it could take years for growth to return before the crisis. Many companies have introduced flat-rate spending moratoriums, frozen hiring and deemed most new acquisitions to be immaterial. However, some executives know that there are opportunities to optimize business efficiency, gain more market share, and invest cheaply in critical infrastructure. HBR suggests playing offensive and defensive by first stabilizing your business and ensuring liquidity, and then determining how to outmaneuver your competition.
The current business environment has prompted many software vendors to revise their 2020 forecasts, but some software companies, like my team at Anvyl, have taken a different approach. We have shown the competitive advantages that customers can enjoy by spending more on tools that scale their teams, deliver better customer experiences, and deliver a clear return on investment. Here are three reasons why investing in software can now make your business more resilient and profitable.
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1. Scaling without setting.
When considering hiring new people to scale your business, it's important to understand what each new hiring will cost your business. In addition to salary, benefits and income taxes; Recruiting, training and training a new employee can also be costly. Before hiring, determine if your teams are actually reaching their maximum capacity. Evaluate whether software, collaboration, or better processes can drive efficiency. Take into account the barriers to optimal spending and uncover problems that can delay, frustrate or affect the efficiency of the organization. If you look closely, there are these possibilities in almost every company.
For example, one of Anvyl's customers with its existing team was able to increase productivity by 300 percent by adding collaborative software to make the supply chain transparent. Before evaluating the ROI, the company expected two or three additional employees. After uncovering the gaps in its process, the company found that adding collaboration software made up for nearly 6,000 non-productive hours. As a result, each employee no longer had to keep a table, call suppliers manually for each order and notify them by email, or track original files across old email threads.
2. Automate repetitive tasks.
Artificial intelligence and machine learning tools have become more accessible and affordable for companies of all sizes and across all industries. Gartner's 2019 CIO survey found that the number of organizations implementing AI has increased 270 percent in the past four years despite a lack of talent.
With AI / ML software, you can automate boring or repetitive tasks and focus your team on more creative or strategic work. What employee responsibility could you delegate to technology to increase employee satisfaction, engagement, or productivity? Automated chatbots, data analytics, or lead generation and sales tools can make a big contribution to reducing operational inefficiencies, improving team morale, and maximizing results.
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3. Improve visibility.
Transparency in your business operations is crucial to prepare for unforeseen challenges, as many manufacturing companies have learned during the peak times of these difficult times. It is important to identify potential disruptions in your business operations and have a plan to mitigate them in advance. The implementation of real-time visibility software across functional operating areas such as supply chain, logistics, sales and customer success enables proactive strategic decision-making.
Your leadership team should have real-time visibility across all departments and access to cross-functional data. Adding software democratizes data in departmental silos, reducing the risk of data loss due to unexpected staff outflows and enabling timely strategic decisions.
Economic downturns are inevitable, but recognizing the opportunity and taking decisive action can dramatically improve your business. Concentrate on optimizing business efficiency, gaining more market share and investing in the future of your company.