How the use existing digitales tools can reduce costs

Patrick Steiner
November 19, 2024
5
min. Lesezeit

Most companies have already invested big in digital tools – but are they truly reaping the rewards? The answer, all too often, is no. That’s because the biggest cost-saving benefits come not from developing digital solutions, but from using them effectively across your business. Thisis where Digital Momentum comes in. It’s the force that turns existing digital investments into ongoing cost reductions.

Imagine running a business where every process is streamlined, every workflow is optimized, and every tool is fully leveraged to save money. Picture a company where operational costs are slashed, efficiency soars, and customers are more satisfied than ever before – all by using the digital tools you’ve already built and paid for. This is the power of Digital Momentum: when Digital Transparency and Digital Usage combine to unlock the true cost-saving potential of your technology.

The formula is simple: Digital Transparency + Digital Usage = Cost-Saving Digital Momentum. When these two forces come together, the impact on your bottom line can be transformational.

Digital Transparency: Unlocking Hidden Cost Savings

Digital Transparency means more than just knowing you have digital tools – it’s about ensuring every team member understands what tools are available, how they fit into the bigger business picture, and how they can be used to drive cost efficiency. Without this visibility, digital tools often go underutilized, and the cost-saving potential remains untapped.

Take Siemens, for example. The company had invested heavily in digital tools like its Digital Twin technology, which allows for virtual simulations of real-world processes. However, many teams weren’t fully utilizing the tool’s potential. By increasing Digital Transparency, Siemens made it clear to its teams how Digital Twins could optimize production processes, identify inefficiencies, and reduce waste. The result? Siemens was able to cut operational costs by two-digit percentages, saving millions simply ensuring the tools were being used effectively.

When companies focus on Digital Transparency:

- Operational blind spots are removed, making it easier to spot and eliminate inefficiencies.

- Teams are empowered to make data-driven decisions that directly impact the bottom line.

- Costs from wasted resources and underused technology are dramatically reduced.

Samsung in Asia exemplifies this strategy. While it had implemented advanced automation in its factories, many teams were still relying on manual processes. By enhancing Digital Transparency, Samsung gave teams clearer visibility into how automated tools could reduce waste and speed up production. Internally, this led to massive reductions in production delays and operating costs. Externally, Samsung customers benefited from improved product delivery times, adding value to the entire ecosystem.

Digital Usage: Driving Costs Down with Automation and Optimization

Once your teams and customers have full visibility into your digital tools, the next step is driving Digital Usage – ensuring these tools are fully integrated into daily operations and actively used to streamline processes and cut costs. This is where many companies see the greatest opportunity for savings.

Volkswagen Group provides an excellent example. Internally, Volkswagen had developed digital tools to manage its productionlines more efficiently, but they weren’t being used to their full potential. By launching an internal push to drive Digital Usage, Volkswagen promoted the adoption of these tools across its factories. The result was a substantial reduction in production costs, achieved through automated processes that minimized human error and sped up workflows. Externally, Volkswagen's “WeConnect” app allows customers to monitor their vehicles’ performance and receive real-time updates, further reducing customer service costs and boosting brand loyalty.

Tata Consultancy Services (TCS) in India had a similarexperience. TCS realized that many of its clients weren’t fully utilizing the digital tools they had implemented – tools that could drastically reduce operational costs. To address this, TCS launched user adoption programs aimed at helping clients better integrate these tools into their day-to-day operations. This resulted in higher client satisfaction and reduced costs, as businesses optimized workflows, automated repetitive tasks, and cut unnecessarylabor costs.

In the U.S., Amazon Web Services (AWS) faced a similar challenge. Many customers weren’t using the full range of cost-saving tools available on the platform. To fix this, AWS launched the Well-Architected Framework, which helps clients optimize their cloud infrastructure to reduce costs. This initiative increased usage of AWS’s more advanced features, saving customers money by optimizing storage, computing, and data transfer, while also reducing AWS’s own support costs by making their platform more user-friendly.

When companies focus on Digital Usage:

- Automation of routine tasks cuts down on labor costs and human error.

- Process optimization slashes the time and resources required for everyday operations.

- Customer satisfaction rises, as customers are empowered with tools that reduce friction and improve service.

Alibaba, one of Asia’s largest companies, faced similar challenges. While Alibaba’s merchants had access to powerful cloud and AI tools, many were not using them to their full potential. By promoting Digital Usage and providing merchants with training on how to automate inventory management, sales tracking, and customer service, Alibaba was able to dramatically increase efficiency across its platform. The result? A reductionin merchant operational costs and a significant boost in revenue – all by using tools that were already in place.

Reap the Rewards: The Cost-Saving Power of Digital Momentum

The bottom line? Companies that fully leverage their digital tools through Digital Momentum experience not just incremental improvements, but exponential cost savings. Imagine cutting operational costs,improving productivity, and enhancing customer satisfaction – all by promoting the use of digital solutions that are already in place.

And here’s the best part: the benefits don’t stop. As Digital Momentum builds, it fuels future innovation, growth, and cost savings. Your business evolves from simply keeping pace with the competition to setting the pace.

The future of your business depends on more than just adopting technology – it’s about fully using the digital tools you already have. By promoting Digital Transparency and Digital Usage, you can transform your company into a lean, agile, and cost-efficient powerhouse.

Are you ready to unleash the true cost-saving power of your digital tools?

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