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It is possible for companies to drive efficiency without burning a hole in their pockets or exceeding allocated budgets.
FREMONT, CA: Technology has undoubtedly been a great enabler for businesses. However, the belief that adopting technologies increases business expenses prevents many companies from investing in them. This belief might only be partially true because certain digital solutions available in the market enable companies to do cost-cutting, along with streamlining processes and ensuring the quality of service. By driving up efficiencies and lowering business risks, many digital solutions empower companies to reduce costs of operation and losses. Many other technologies enable companies to reduce spending on human resources. There are incredible ways of cutting costs in enterprises using advancing technologies. CIOs can guide organizations towards effective cost reductions while simultaneously pushing for tech transformations using the following list of technologies and their applications.
• Digital Asset Management
Digital asset management solutions are valuable technology-backed applications with which companies can track and handle assets throughout their life cycle. Assets could either be hardware or software. Traditionally, asset management involved the use of a lot of manpower. Not only did the involvement of managers affect the reliable handling of assets, but it also meant higher costs. With digital asset management solutions, companies can reduce the role of managers while making the process cost-efficient and optimized. CIOs can help eliminate the risks and costs of expired licenses, insufficient stocks in inventory and misplacement of products during delivery, with the help of asset management solutions, which also allow companies to free up resources that would otherwise account for losses subsequently.
• Cloud Computing
Adopting cloud technology is one of the foremost steps that CIOs should promote in their companies while aiming for cost-cutting through technology. Cloud computing accords several advantages to businesses which are directly and indirectly related to cost-cutting. With cloud technology, companies can shift from on-premise systems to external, cloud-based infrastructure. This allows companies to cut down on IT investments and free up resources that are required to maintain the facilities. Since cloud services are available on a subscription basis, companies also have the freedom and flexibility to increase or decrease investment according to changing needs. The shift from capital expenditure to operational expenditure is crucial for companies looking to make cost savings.
• AI-Powered Chatbots for Customer Service
Initially, customer services involved a large group of employees who would handle communications and take queries from consumers. With the advancement in AI, a new approach has now emerged. Instead of investing in full-scale manual customer service facilities, companies can adopt AI-powered chatbot technology. Chatbots are better from the cost point of view and are available throughout the day, unlike their human counterparts. Conversational AI technology offers contextual responses to queries much faster. With rapid development, the capabilities of these chatbots are also improving. Thus, CIOs can help companies deploy AI chatbots to reduce customer service costs.
• RPA for Repetitive Tasks
Using automation, companies can conduct operations at a fraction of traditional costs. RPA has proven to be a big advantage for many industries. RPA allows companies to reduce their dependence on staff and reallocate workforce for other purposes. Since technology is more accurate in comparison to manpower, there are lesser chances of errors and risks in operation. Rather, the speed of operations increases, leading to better productivity and higher profits.
Investing in technology reduces the burden of costs. A right combination of cost management strategies and transformational technologies facilitates significant cost saving while complementing it with operational optimization.