How Can Digital
Tr a n s f o r m a t i o n
Re d u c e Yo u r
Business Cost
Saurabh Singh
TABLE OF CONTENT
Benefits of Digital
Transformation That
Contribute To Cost
Reduction
How Digital Maturity
Drives Your Business
Revenue?
Technology Implications
That Can Reduce Your
Business Cost
Five Digital
Transformation Industry
Use Cases For Cost
Management
How Can Appinventiv
Help You With Digital
Transformation?



Share this article
December 20, 2022
Digital business transformation constitutes the implementation of digital
technologies in all your business areas. Enterprise digital transformation
carries the ability to streamline your business process, manage and reduce
your operational cost, and contribute to revenue growth.
Did you know the global digital business transformation spending is
estimated to reach about $3.4 trillion by the year 2026?
Therefore, if you have decided to enhance your business processes and
manage cost by adapting advanced tools and technologies, your first
concern may revolve around “digital business transformation cost”. While
there is no accurate answer to this, you may get an idea based on your
business needs and digital transformation cost benefit analysis.
This article familiarizes you with various cost management benefits of
digital transformation, digital business transformation strategies and
models to help you reduce business cost and technology implications that
contribute to your digital business transformation cost.
Before you start, it is suggested to outsource the digital transformation of
your business to a reliable and trusted partner that helps you achieve all
business objectives in digital transformation for business growth.
Now, let’s begin with exploring the cost management benefits of adapting
to digital business transformation.
Benefits of Digital Transformation
That Contribute To Cost Reduction
As simple as said, the cost that is saved in mundane and unproductive
tasks can be better invested in customer acquisition. Ideally, digital
transformation in your business can reap the below benefits that directly
contribute to cost management:
Resource management
As you digitally transform your business, you slowly replace the legacy
system that only serves individual business units. Industrial experts state
that this end-to-end digital approach can help eliminate manual and
associated costs. Moreover, the on-demand technologies can help your
business adapt to the modern changes and requirements from the customer
end.
Improved consumer engagement
We cannot avoid how these technologies have enhanced the businesscustomer relationship. Your business attains varied opportunities to connect
with the customers and understand their needs and demands. This is
probably how you can meet the shifting needs by allocating the right
resources at just the right time, leading to reduced costs over a period of
time.
Faster time to market
One of the most prominent digital transformation advantages is the
reduced product life cycle. Specifically, where development costs are
higher, digital technologies in business are the way to stay ahead. The
economics of the entire developing and manufacturing industry might
change in the coming years due to ever-evolving digital transformation.
Energy and personnel costs
Embracing digital transformation in your business can help you stay in
compliance with maintenance schedules along with keeping your systems
and equipment in optimal condition. This significantly saves you from
paying high energy maintenance bills.
Moreover, by automating your business process, you can save huge
overhead costs on administrative tasks, in-house promotions, management
tasks and training sessions.
Increased revenue
Since our major part of the discussion is focused on cost reduction and
management, digital transformation is a massive reason for increased
business profitability. Digital businesses have delivered new functionalities
that allow business growth and more significant RoI.
Speaking of maximized revenue with digital business transformation, let’s
take a detailed view on how digital transformation drives your business
revenue.
How Digital Maturity Drives Your
Business Revenue?
As per Deloitte’s recent survey that establishes connection between
financial performance and digital transformation, a digitally mature
business can effectively maximize its net revenue growth and net profit
margin by adapting to a flexible model.
The study further states that a digitally mature business is more likely to
achieve below business goals:
Product quality
Customer satisfaction
Long term financial performance
CSR
Diversity and inclusions etc.
If keeping the budget in control is your primary goal, then without any
doubt, your biggest asset is technology! Digital business transformation
solutions as a concept covers three major sectors in businesses that
directly contribute to your revenue– strategy, operations, and
management.
Here is a process breakdown of digital transformation with respect to the
above mentioned business sectors:
D
Diiggiittaall TTrraannssffoorrm
maattiioonn A
Arreeaass
D
Diiggiittaall TTrraannssffoorrm
maattiioonn PPrroocceessss
Process transformation
Adoption of digital tools to automate mundane tasks
Digital transformation in operations
Digitization of documents
Processing of data in the cloud
Process optimization
Automating sales/onboarding processes
Collaboration tools
Digital Transformation in Strategy
Analytics
Customer data processing and analysis
Automating mundane management tasks
Digital Transformation in Management
Accountability software for performance measurement
Management software
When you inculcate an aligned digital business transformation strategy,
you are able to deliver successful customer experience, channelize your
marketing strategy and improve operations.
Moreover, these strategies always function on a principle of maximizing
profits and minimizing gains which brings back to our next discussion, what
technology implications can help you with cost reduction?
Technology Implications That Can
Reduce Your Business Cost
Here are some of the digitally transforming tools and technology
implications that can get your business cost reduction along with better
customer experience:
Cloud hosting and migration
Cloud adoption is the most significant step to accelerate enterprise digital
transformation. As per Statista’s recent survey, over 50% of corporate and
public data is stored in the cloud. This shows that companies are
increasingly shifting their resources to cloud environments with business
agility. Cloud hosting leads to centralizing the entire business from one
touchpoint so that every information is accessible to everyone saving cost
and time.
Automation tools
Automation tools are widely adopted by enterprises of every scale and
size. For a business to survive, it constantly needs to focus on lowering
operational costs, and that’s when automation tools come into action. They
simplify workloads and mundane tasks and increase productivity by
bringing efficient management.
[Also Read: AI in Quality Assurance: The Next Stage of Automation
Disruption]
IoT (Internet of Things)
Emerging IoT technologies are the answer to how digitalization reduces
cost. IoT helps in prioritizing and optimizing the inventory, revenue system,
manufacturing, operational process, and energy management. IoT is the
biggest source of predictive maintenance, 5G, and big data, decreasing
interruptions and overall development cost.
Team management tools
Applications such as keka, Basecamp, Asana are being used by startups
and enterprises to manage tasks, projects, and teams efficiently. They
enable tracking all initiatives in one system. These comprehensive
management tools and software are also a significant help in cost and
resource management.
Shipping and logistics tools
Technological tools can be the backbone of delivery, purchase, and
transportation. Digital tracking of shipping and logistics saves staff
requirements and centralized product operations. This is again another
example of enterprise digital transformation cost reduction.
So far we have covered various aspects of digital business transformation
that can help you save operational and overhead costs. However, we are
yet to discover the process of applying the above mentioned technologies
to our respective business industry.
Let’s take a few real time industry use cases of digital transformation
adoption to understand how various business verticals adapt to modern
technologies to save costs.
Below are some of the successful digital transformation applications and
practices that various industries follow to manage cost and scale.
Five Digital Transformation Industry
Use Cases For Cost Management
Startups and enterprises are now looking at big numbers and opportunities
by implementing various digital transformation strategies aligned to their
industry needs. Here, we have listed real time digital business
transformation examples and practices, businesses follow to manage their
costs.
Supply chain and manufacturing industry
for social distancing with an automation
process
AI and IoT use cases are well known in digitally transforming the supply
chain and manufacturing industry. We have talked about how IoT in
manufacturing has been a massive help in breaking digital barriers.
Bringing intelligence to the equipment on the factory floor has minimized
the time humans spend in close proximity.
Manufacturing and related industries implemented WIP (Work In Progress)
solutions with deep learning that helps in the quality control process.
Another big execution in IIoT is image processing and automation tools that
have helped keep social distancing in check. These given technologies
have helped the supply chain sector save over 40% on labor and
associated processes.
One real time example of executing digital transformation strategy for
supply chain is Appinventiv designing an intelligent logistics and supply
chain software solution to help the enterprise get more responsive to its
customers’ needs. The solution resulted in 60% increase in supply chain
visibility and 40% reduction in transportation and logistics costs.
Digital healthcare industry to keep spaces
safe
The innovation in the healthcare industry has been one of the most
prominent examples of digital business transformation success. In the post
covid world, combining AI with robotics has helped enhance patient
monitoring, lab automation, neurosurgery, medical device packaging and
many other fields. Online healthcare applications have also kept patients
and doctors in touch digitally.
The healthcare institutions also get the agility required to optimize
operational processes while reducing costs.
One real time digital business transformation example can be Appinventiv
building a revolutionizing app solution “YouCOMM” to effectively transform
patient’s assistance in emergencies. YouCOMM is now successfully running
in various hospital chains leading to 60% growth in nurse’s response time.
eCommerce industry creating more
engaging shopping space
Another industry that witnessed remarkable progress in digital
transformation is the retail and eCommerce industry. Businesses use data
and AI to refine customer experience, optimize operations and layouts and
refine product development.
In the world of social distancing, computer vision and big data are being
used to track customer volumes in the store and help retailers maintain an
engaging shopping space. Moreover, directly interacting with customers on
your business platform (mobile apps) rather than on third party websites
can help you cut costs, offer better prices to customers, and generate
better revenue.
Two popular instances for digital business transformation in eCommerce
are: Adidas and IKEA
Appinventiv curated a mobile app solution for Adidas to expand its global
presence, resulting in over 2+ Million downloads.
Appinventiv designed an ERP solution for world’s biggest furniture retailer
IKEA to ease its customer onboarding process. Today, the ERP solution is
expanded in more than 7+ IKEA stores across UAE, and is the biggest
source of ROI measurement.
Food industry delivering successful
customer experience
Food and restaurant industry often struggles with customer retention that
occurs due to unsatisfactory app experience, difficulty in placing an order,
or poor in-app user journey. A digital transformation business strategy of
adopting enhanced and conceptualized food applications has helped the
industry overcome major challenges.
Digital business transformation cost management examples for the food
industry can be, Appinventiv redefining the UI/UX strategy for Dominos to
increase its mobile app conversion rate by 23%.
Another instance is Appinventiv transforming the digital user journey of
Pizza Hut through end-to-end mobile app development. Today the app has
over 50k+ downloads along with an increased conversion rate of 30%.
Financial industry adopting decrypted
approach for security
Modern financial customers now look for core banking solutions that offer
blockchain functionalities such as wire transactions with crypto, buying and
selling of cryptocurrencies, wallet recharge, and other payments using
Bitcoin and Ethereum and more.
This is probably why more fintech and banking institutions are embracing
blockchain and associated technologies to offer security and personalized
services.
For instance, Appinventiv developed a crypto based mobile app for Asian
Bank to make cryptocurrency transactions mainstream for consumers.
Similarly, every industry vertical has inculcated a specific digital business
transformation strategy to improve productivity and efficiency.
The way we act today is how we are going to be remembered in future.
Making right decisions is of absolute necessity today and the right way to
innovate through your business is by adapting digital transformation.
However, make sure you have a reliable technical partner by your side for
optimizing business processes, automating systems, and propelling
innovation.
[Discover how Appinventiv solves digital transformation challenges that pull
businesses down.]
How Can Appinventiv Help You With
Digital Transformation?
Appinventiv is a digital transformation consulting services company that
helps businesses achieve tangible results and establish agile processes by
offering custom-made solutions based on evaluation of their current
capabilities.
We h e l p y o u
execute end-to-end digital transformation at speed and scale,
create new revenue streams for your business
cut costs and risks with informed decision-making
redefine how you engage with the existing and prospective clientele
become more responsive and flexible to market trends
adapt and master the latest and emerging technologies for your business
and so much more.
If you need customized technological insights and consultation for your
business, we are a click away. Appinventiv can be your door to your
business digital transformation. Connect with us!