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Technology can introduce new challenges for companies. Most feel that they need to engage in digital transformation to stay competitive in their industry. However, this is easier said than done. Boston Consulting Group (BCG) estimates that 70% of digital transformations fall short of expectations.
However, the same consulting firm found that businesses able to successfully adapt their technology and digital tools experienced 1.8 times as much revenue growth as non-digital competitors. The progressive companies were able to automate tasks, streamline operations, enhance collaboration, and analyze data to inform decision-making. All these advantages gave them a competitive edge and increased efficiency while lowering operational costs.
This efficiency and educated decision-making can be especially important during economic downturns when strategy adjustments and cost-cutting measures are needed.
Software Integration
In addition to digitizing and automating tasks, software can also enable collaboration between employees and allow multiple people to contribute to the same processes even if they aren’t in the same place. This leads to smoother workflows and time efficiency, giving workers more capacity to focus on high-level tasks.
For example, management and accounting software can automatically create reports and popular forms needed for bookkeeping, compliance reporting, and analytics.
Today’s advanced programs can offer real-time insights by constantly adding and visualizing data in real-time.
With a wealth of customizable and automated reports at their fingertips, managers can make informed decisions during uncertain times and take quick actions to position themselves better to deal with challenges.
Virtual CFO Services
Companies can sometimes get carried away with the adoption of new tech, and pursuit of new efficiencies can come with a laborious learning curve. That is why, in some cases, a business may choose to outsource certain operations to experts. Financial tech specialists can get the most out of analytics tools and provide insights more effectively than many in-house teams.
Virtual consultants have specialized expertise and may work as a team to provide insights specific to their specific knowledge area. They also use advanced tools, like AI-powered automation, to deliver insights quickly using your firm's data.
As an example, virtual chief financial officers (VCFOs) work remotely and use software to streamline financial analysis and reporting processes. They are often more cost-effective than traditional financial consultants or onsite accounting teams. Because virtual CFO services are available as needed, companies do not have to commit to long-term contracts, and they can quickly access financial experts to help navigate difficult economic environments when challenges arise.
Real-Time Financial Reporting
One of the biggest advantages of technology is its ability to provide ongoing analysis and accurate insights based on real-time data. Businesses with financial analytics software are better equipped to deal with fast-changing environments and economic uncertainty.
For instance, companies can track important KPIs using software that automatically records and visualizes the latest data. Decision-makers can see how these indicators change after strategic adjustments, policy changes, developments with clients, or any other shifts in the business environment.
Complex indicators may form trends that only an intelligent program can identify, enabling forecasting or providing early warning when downward patterns indicate a lull in revenue. With these insights, managers can make early adjustments to proactively deal with economic fluctuations so that they do not lead to excessive financial losses.
Process Automation
Tools like generative AI are driving change in the workplace. As many as 30% of human work hours could be automated by 2030, but the shift is expected to change the nature of knowledge-based professions rather than replace jobs outright.
For example, time-consuming manual tasks like data entry, basic analytics, bookkeeping, billing, and document management are common targets for automation. These jobs don’t generally require creative thinking or adaptive problem-solving, so companies don’t compromise quality or performance by automating them.
AI will not make business strictly more impersonal, either. With human capital freed up by automation, employees can focus on higher-level efforts, engage with customers more often, develop new products or services, and focus on process improvements or innovations that benefit the company in the long term.
Meanwhile, process automation cuts operational costs, creating a more agile business model that can adapt to economic challenges as they arise.
Web Traffic Analysis
Web traffic analytics tools provide insights into site performance. KPIs like page views, time spent on each page, event tracking, and unique visitors can help gauge the success of site optimization efforts and marketing campaigns.
A business can use platforms like Google Analytics or Adobe Analytics to assess web performance and perform A/B testing to see which ad, page, product, or blog post drives more sales or interactions from visitors. Marketers can then use the one that shows better results.
Since today’s businesses rely so much on communications through their websites, these analyses are important for customer acquisition and relationship management. A fully optimized website can help companies reach as many customers as possible during uncertain economic times, maximizing their chances of attracting new business.
Enhanced Collaboration
Project management platforms enable collaboration between teams, even if they are in different locations. These cloud-based tools have features for communication, file sharing, and real-time document or spreadsheet editing.
These virtual environments allow companies to use the best workers for specific projects regardless of their location or their work preferences. This improves the quality of the work and increases the chance of a positive outcome for each project or task.
With such a variety of digital tools and services, companies can cut costs, improve decision-making and take all other steps necessary to navigate times of economic uncertainty and remain productive and profitable.
