One of the most important things to measure and monitor in a business is the amount of money it takes in terms of service, manufacturing, processes and various other factors that a business goes through in order to produce their goods or services. This appears to be relatively simple in more traditional businesses in that if they were to start focusing on reducing costs across different areas of the business, it can be (relatively) simple to do – find cheaper suppliers of raw materials, look for discounted providers, streamline workforce costs or improve the efficiency of existing processes.
One of the main issues in the new digital age is looking into how you can keep a handle on costs of running the business when there are so many new external factors that could suddenly hit a business in the digital age’s profit margin. Keeping on top of the cost of good or services of your business in the new digital age can therefore serve some challenges. So with that in mind, we have a few tips for how to ensure you can continue reducing your business costs and start making real improvements to your bottom line through the use of bespoke software development and cloud software implementation.
Realise your starting point to keep a steer on your progress
One thing that a lot of businesses seem to misunderstand is the analytics and measuring process is an ongoing thing. This is extremely important to ensuring that you are going to get the most out of the efficiencies you can realise through the new digital implementations in your business. However with that in mind, it’s important to first develop a plan of understanding what your existing processes are and how you could potentially be susceptible to losing money in existing areas of your business.
It is always good to start to have a look into how you are going to start modelling the costs of your company and then try to break this down across each of your outputs (i.e. individual products, services, departments etc). This more granular view of the inner workings of your company can be much more beneficial to you in the long run and when you have this; you can then use it as a living, breathing document or plan that can be developed and built upon over time. We have written a guide recently that will help you undergo this process; click here to find out the 5 crucial steps for building process maps to make your business more efficient and productive.
Getting a more rounded, transparent idea of the inefficiencies in your business, especially the technological and digital setup will allow you to understand in which ways you can really start to positively affect the performance of your business, rather than making guesses at it.
Plan out a sufficient roadmap and get everyone onboard
When you have put together your process map, then you can start to make the necessary changes including getting the right stakeholders on-board for the right areas of the project. For example, seeing the process map out will allow you to understand which people within your business will need to be involved at key points.
The key point with this part of the plan is to really take small steps. Great foot-in-the-door techniques for implementing wider wholesale changes is to start out with small improvements and use them to build up board-level confidence when trying to start wider strategies.
Assigning sponsors and owners to each individual part of the project will allow you to get a solid amount of clout behind the project; not only does this cause the individuals in charge of their own area to feel a positive amount of responsibility for what they are doing, it is then even more likely that they will see the project through with more accuracy and concentration; thus positively affecting the overall outcome.
Rinse and repeat
At this point you have then built the beginning of a longer, ongoing process that will allow you to reuse the structure for improving other areas of the business on an ongoing basis. Not only will this help you to start planning for future business changes but it also makes sure that the inefficiencies that you have managed to eradicate don’t start creeping back in. Off the back of this, reporting ability is now a key need for your business’ leaders so that you can start to monitor the progress.
Business insight software allows you great visibility across various different systems in your business; especially if you have something that has been built bespoke just for your business to ensure that you can start to understand your business in a much quicker, more transparent way; with actionable insights and easy to read and share information presented to you.
The old adage – buy cheap, buy twice
It’s something that is repeated in various different arenas for many different reasons but it is generally true. Making the initial investment to undertake a project; be that for improving business processes to reduce customer churn or to change the way in which IT systems and tickets are managed to improve employee efficiency – if you make the investment now then over time this will reduce the costs that could arise from various other unforeseen problems that may come at you from nowhere.
We have shared in this article a guide that we put together to help you in the process of building these process maps; and here you can also find out the 7 key benefits for bespoke software development which will help you start to understand how you can actually have software; including cloud powered systems; built specifically for your and your business that will allow you to adapt and move your business forward even faster than before.