How does IT Advisory support businesses’ cost reduction?
In the realm of business, comprehending the crucial role of costs is a shared responsibility among firms, executives, entrepreneurs, and managers alike. The commencement of economic activities is typically accompanied by the allocation of budgets, which are utilized to direct expenditures towards cost recovery and profit generation. The success of business models is contingent on identifying the reasons behind the profitability of economic activity and sustaining that profitability over time. Furthermore, Cost reduction with IT Advisory measure becomes paramount in optimizing operational efficiency and ensuring sustainable financial success.
In today’s highly competitive landscape, organizations differentiate themselves by expertly integrating and maximizing costs, which has become a critical factor as markets move beyond traditional product or service-centric approaches. It is paramount to achieve a heightened profit margin to provide financial resources for investments and future growth.
Recent technological advancements, including but not limited to AI, Automation, and Generative AI, have empowered organizations to enhance efficiency and reduce costs. This has led to a noticeable trend where new business models increasingly rely on technology. The technology industry is experiencing exponential growth as it meets the widespread demand for technological solutions across various sectors, from communications and digitalization to the Internet of Things, ICTs, and programming.
Here are some examples of technological adoption for cost reduction in organizations
Automation and Operational Efficiency
Intelligent applications have revolutionized operational processes by significantly reducing costs. As per Gartner, the incorporation of intelligence in applications allows for learned adaptation to respond appropriately and autonomously, thus becoming a new capability provided by technology. With GenAI applications, operational efficiency, in terms of information flow and interpersonal communications, increases exponentially. This technology enables access to enormous sources of information, both internal and external, available to business teams, ensuring that knowledge and skills are swiftly disseminated throughout the company. Consequently, operational efficiency leads to better results in company revenue in less time, maximizing work due to the ease of communications and accessibility to information.
Cybersecurity Investments for Cost Savings
The widespread availability of AI technology has brought to the forefront the issues of trust, risk, and security. It is imperative to address these issues with utmost clarity and urgency. Gartner has highlighted that the absence of robust security measures can lead to the rapid proliferation of negative effects, ultimately compromising the positive performance and societal benefits that AI can offer.
Investing in cybersecurity is, therefore, critical to mitigate potential risks that could jeopardize data protection, AI-specific security, and the ability to monitor models. Additionally, it is essential to establish risk controls for inputs and outputs to third-party models and applications.
Gartner has indicated that the adoption of such controls can significantly enhance decision-making protection by eliminating up to 80% of defective and illegitimate information. Therefore, it is highly recommended to prioritize the implementation of these controls to ensure the safe and secure use of AI technology.
Augmented and connected workforce
Gartner, a leading research and advisory firm, has elucidated that the augmented and connected workforce (ACWF) is a strategic initiative for organizations to maximize the value derived from human workers. With the aid of intelligent applications and workforce analytics, ACWF aims to provide contextual guidance and support for employees to enhance their work experience, well-being, and skill development. Additionally, ACWF is also intended to drive positive business outcomes and create a favorable impact for various stakeholders.
Furthermore, Gartner has predicted that a significant percentage of Chief Information Officers (CIOs) will leverage augmented and connected workforce initiatives to expedite the time-to-competition by 50% for critical job roles until 2027.
In concluding our exploration of technology in IT Advisory as a cost reduction driver, we recognize the shared responsibility among businesses, executives, entrepreneurs, and managers to comprehend the crucial role of costs in economic activities. As markets evolve beyond traditional approaches, organizations distinguish themselves by expertly integrating costs to achieve a heightened profit margin for investments and growth. Recent technological advancements, such as AI, Automation, and Generative AI, have empowered businesses to enhance efficiency and help them to improve their cost reduction, leading to a noticeable trend where new business models increasingly rely on technology.
Now, we invite your insights in the comments. Did you know about cost reduction with IT Advisory, and what specific examples of technological adoption have you observed? Share your thoughts, contributing to the ongoing conversation about the dynamic role of technology in driving cost savings and business success.
If you’re eager to enhance your business through strategic IT advisory services, we extend a warm invitation to discover the expertise we offer. Explore the depth of our IT advisory solutions and find how we can collaborate to elevate your technology initiatives. Your next successful IT strategy might just be a click away.
Michele Pelino & Naveen Chhabra, Principal Analysts, OCT 30 2023. Forrester Featured Blogs. Predictions 2024: Technology Infrastructure Addresses A Tumultuous Environment. https://www.forrester.com/blogs/predictions-2024-technology-infrastructure/
Gartner IT Symposium/Xpo 2023, October 16-19. Press Release Newsroom. Gartner Identifies the Top 10 Strategic Technology Trends for 2024. https://www.gartner.com/en/newsroom/press-releases/2023-10-16-gartner-identifies-the-top-10-strategic-technology-trends-for-2024