Pandemic, supply chain problems and inflation have hit companies in many industries badly. In almost all sectors, people are therefore currently looking for ways to reduce costs. Since the increased energy costs are not an insignificant factor, inflation is currently also slowing down progress in digitization. However, companies should be careful not to lose touch in this respect.
Fortunately, there are ways to save money without having to give up investments in digital processes. For example, companies can buy used software or streamline existing systems. The only important thing is that safety does not suffer as a result.
Spending on digitization is exploding
Especially when money is tight, companies have to think carefully about how much they want to budget for the individual areas and which investments have priority. Projects that pay for themselves in the short term or even promise profits often have priority. The existing IT is already a real drag on the finances, but if you don't want to lose touch and remain competitive, you have to make ongoing digital investments. In view of these facts, increasing digitization costs can hardly be avoided in any industry. According to current IT trends study most companies budget more money for digitization from year to year. For almost a third, this increase is even around 10 percent. Of course, many decision-makers worry that the costs could get out of hand. However, there are quite efficient ways to reduce the expenses for investments and existing systems.
Buy "used" software
Management, accounting and individual departments work with a large number of digital applications every day. Sooner or later, upgrades to newer software versions are required to ensure compatibility and data integrity are not compromised. However, those responsible should check carefully in advance whether it really has to be the very latest revision or whether an older program does not offer the same range of functions. Using the current generation of software, which is still supported but not the latest version, often has clear cost advantages. Since users cannot "use" the software in the physical sense and wear it out in the process, it is advisable to transfer licenses that have already been used. Dealers specializing in the resale of used software can provide information on when the purchase of older licenses is worthwhile for the respective company.
Transition to cloud computing
Another or complementary option is to move from on-premises data silos to cloud-based applications. As a result, companies can save on the costs of buying, maintaining and operating hardware and instead rely on the well-developed cloud infrastructure of large providers. As a result, companies benefit from other decisive advantages almost incidentally. Cloud applications offer significantly higher flexibility and scalability than traditional IT infrastructures. Businesses can quickly respond to changing needs by adding or removing additional resources in the cloud. In addition, cloud services enable location-independent access, which fits perfectly with the hybrid working models that are now common in many companies.
Combine systems and get rid of unused tools
Cleaning up and consolidating your own IT structure and the associated system landscape is basically a sensible measure. Here, companies should review their existing IT systems and find out whether it is possible to combine or replace different systems. In some cases, there may also be an opportunity to move to an integrated software solution that provides multiple functions in a single system. Reducing the number of systems and simplifying the infrastructure mean that companies save on maintenance, training and support costs. With the consolidation of IT systems, redundant functions and processes are also eliminated, which increases efficiency and productivity.
Companies should not save at the wrong end
However, companies should not make the mistake of saving at the wrong end. Anyone who delays digital innovations risks losing their own competitiveness in the long term. For example, if companies rely on outdated technologies that are no longer compatible with current standards, or if maintenance and training of IT staff is neglected, malfunctions, security problems and data loss are among the possible consequences. Cyber security in particular should get a lot of attention these days, as attacks on the corporate network can paralyze the entire operation.
