The so necessary digital transformation at the COVID-19 moment and, mainly, in the post-covid, will be a priority in organizations. At the same time, this will seem impossible, as the moment has created fragility in the economy and, therefore, in addition to promoting digital transformation, it will also be necessary to promote cost reduction simultaneously. So, despite the digital transformation and cost reduction going in opposite ways, we will explain in this article that this is all possible.
First, let’s understand the 4 main pillars of digital transformation, which are:
The most important pillar in the cost reduction process is certainly the “Operational Transformation” pillar. In this sense of reduction we have some secrets to reveal:
Automate processes
It is a quick way to achieve savings. Replace repetitive human activities with software automation. Free up that extra time for higher value-added activities. In addition to eliminating the human risk of error, automation brings important levels of agility to the target sector.
Orchestrate processes
It is a way of aligning activities now automated or robotized together with human activities of greater added value. Orchestration ensures that there is no waste of resources and time (Lean concept), so orchestration is essential, in addition to aligning deadline needs and SLAs (Service Level Agreement) that the business needs.
Legacy systems integration/various softwares
It is a way to support the automation and orchestration of processes, which allows gains with the interfaces modernization and erros reduction. In addition to not requiring additional investments, as the main idea is to maintain investments already made in different legacy systems / software.
IT outsourcing
It is a way that changes the company’s routine, making it faster, more flexible and more productive, besides providing a significant cost reduction. Obviously it depends from company to company, mainly in deciding what to outsource, but the process itself brings great benefits. The outsourcing of parts or areas of IT, allows employees and managers of the contractor to focus on what is a priority, increasing performance, in addition to reducing costs and also being able to negotiate better conditions in crisis times, as employees and charges are not under your responsibility.
Save using cloud
It is a quick way to use computing resources on demand. Using what, when, how and for as long as you need, is a benefit that you get with Cloud Computing. In addition to offering important services that support automation, they can be done immediately and turned off when they are no longer needed. Obviously it needs care, and depends on an analysis of demand, but without a doubt, cloud computing is important in reducing costs. Within this concept, SaaS (Software as a Service) is a very interesting option, as in a single service package, the worry about storage in databases, application servers, among others, is eliminated, and you can pay for the amount of users you need and increase as you grow.
Establish performance indicators
The indicators give the manager the path to the established direction of his objectives, mainly the objectives of reducing costs and increasing performance. Preferably, have solutions that manage your operation as a whole, that bring information on compliance with SLAs, customer / user satisfaction, process effectiveness, as well as other operations within the sector, especially in the IT sector. In the case of IT, a well-implemented ITSM (IT Service Management) solution offers a complete operational view, in addition to bringing strategic alignment controls to the business. Also, modern ITSM tools offer the concept of ESM and greatly facilitate the previously mentioned options for automation and process orchestration, as these tools bring powerful workflow tools and integration with legacies as the core of their solutions.
Obviously, in addition to the operational transformation pillar, we have the others and we can generate cost savings also in the “Cultural Transformation” and “Experience Transformation” pillars:
Promote Self-Service
It is an excellent way to reduce costs, as it allocates people with the simple function of receiving orders for some actions and executing them in other, more productive positions. With Self-Service, the requesting person himself fills in the information he needs and, most of the time, with the use of automations and integrations it is already possible to complete the desired operation. In addition to saving money, it brings agility and greater satisfaction to those who request it, as a new users generation is increasingly able with respect to technology and wants quicker responses. This concept can be applied to customers, employees and suppliers. Self-Service is for the entire value chain.
Within the concept of Self-Service, “self – healing” is also a powerful concept in reducing costs, because in addition to services, many people come into contact with IT or departments that provide services to resolve doubts. And in this case, good software that guides the user, using registered knowledge or “chatbots” (virtual assistants) are extremely powerful in reducing costs and, if integrated with automation, increase performance exponentially.
The cost reduction achieved in a consistent and lasting way is in itself a great competitive advantage, since lower costs are a way to stand out from the competition, gain more competitiveness and space in the market. This allows the company to prepare for good opportunities in the future, as a lean and flexible company has greater autonomy and freedom of action in its business.
Hence, the digital transformation is undoubtedly the performance transformation. The digital should facilitate and empower. Make digital your company’s greatest ally. Welcome to the new economy, welcome to success!
Do you want to know more about the potential of Digital Transformation in your business? Talk to us and make a diagnosis of cost reduction in your IT operation.
By Emauri Gaspar, Cofounder at Run2biz