Cost optimization is a crucial element in any business strategy. By reducing operating costs and increasing efficiency, organizations can sharpen their competitive edge and make the most of their available resources. In achieving this goal, your IT team can play a pivotal role. Not only do they influence the selection and sizing of technology, but they are also at the forefront of digital transformation. They evaluate, implement, and manage technology to maximize its value and enable a data-driven business strategy.
To effectively contain costs and reduce the total cost of ownership (TCO), IT teams have the option to adopt business process automation (BPA) solutions. While it may seem counterintuitive to add another component to the technology stack, considering how BPA can impact the process ecosystem is crucial. BPA tools can be adapted for various processes and workflows, saving businesses from the expense of using multiple tools or constantly modifying the stack to meet changing demands.
To make the most of a BPA tool, certain considerations should be taken into account:
1. Assess integration needs early: Mapping out all necessary connections to manage processes and workflows prevents the creation of data silos and visibility issues.
2. Anticipate barriers to adoption: Teams must identify and resolve potential issues that could hinder tool adoption. Adequate training should be provided to address any significant learning curves.
3. Define measurement metrics: Clearly determine the success criteria for using a process automation tool, including desired end goals and relevant metrics for measuring success.
Implementing user-friendly solutions, including no-code options, can further minimize costs. These solutions empower business lines to build, automate, and optimize workflows independently, reducing the time and expenses associated with broken or inefficient processes. Providing autonomy to business teams enables IT to focus on delivering other projects, improving service level agreement (SLA) attainment, increasing productivity per full-time equivalent (FTE), and prioritizing security, governance, and strategy.
To overcome resistance to adopting these tools, it's crucial to help business teams understand how autonomy will enhance overall operations and their work. Tailored training based on each team's specific needs and allowing them to start with simple workflows can boost their confidence and prepare them for more complex projects.
IT teams can also contribute to cost optimization by facilitating better decision-making throughout the organization. Integrating people, systems, and applications into a cohesive ecosystem breaks down data silos and removes blind spots. Artificial intelligence (AI) can play a significant role in driving these decisions by providing insights into trends, root causes, and new opportunities. Simplifying access to AI-driven data through role-based permissions and centralized dashboards can empower decision-makers at all levels.
In order to demonstrate the impact of their work, IT teams can focus on several key metrics, including:
1. Reduction in licensing, maintenance, and third-party costs. 2. Decrease in costs associated with inefficient or broken processes (e.g., late penalties, errors, data loss). 3. Increase in the number of deliverables. 4. Improved SLA attainment for requested solutions and data. 5. Faster process lead times. 6. Reduction of the IT backlog. 7. Ratio of workflows built by non-technical users versus IT. 8. Higher productivity per IT team member. 9. Decreased turnaround time for data requests.
As digital transformation continues to shape the business landscape, IT teams now serve as gatekeepers for cost optimization. They not only help reduce the total cost of ownership but also enable business lines to improve process quality and make informed decisions – all of which have a significant impact on the bottom line. By leveraging their expertise, organizations can thrive in an ever-evolving business environment.
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