How Can Businesses Use Technology To Reduce Costs?

How Can Businesses Use Technology To Reduce Costs?

Technology offers a way to improve, evolve and transform current processes into more efficient and effective practices that let staff focus on doing their jobs instead of managing tech deployments.

Implemented effectively, however, technology deployments also offer another benefit: reduced costs. In this piece, we’ll examine the shift of tech from big spender to cost saver, explore five ways technology can help save your business money and answer some of the most common questions about getting started with technology cost savings.

From Cost Center to Business Benefit: The Evolving Role of Technology

Historically, tech deployments were considered line items in a larger cost center. While databases were necessary for information storage and security tools were required to defend against attacks and remain in regulatory compliance, it was the role of other departments such as sales and marketing to make up the difference between IT costs and business profits.

Today, technology can help companies achieve business goals and drive ROI. Consider the cloud: These distributed deployments not only reduce total strain on local servers, but also make it possible for companies to spin up additional resources on demand. What’s more, the operating expense (OpEX) model used by cloud computing means that businesses aren’t on the hook for hardware maintenance and replacement costs. Instead, they can shift this spending toward more pressing line-of-business projects.

Five Ways Using Technology Can Help Reduce Costs

So how can businesses use technology to reduce costs? While your mileage may vary based on current technology infrastructure and corporate goals, there are five common ways technology is often used to help reduce costs.

Cloud Computing

When it comes to using technology to reduce costs, cloud computing is a great starting point. By shifting key functions such as data storage or analysis off local stacks and into the cloud, companies can automate key processes and eliminate the need to overspend on excess local server capacity in case demand suddenly spikes.

Connected Devices

Connected Internet of Things (IoT) devices such as sensors and monitors can provide critical data and context about current operations. This makes it possible to both predict problems before they happen and track issues as they occur, in turn providing the visibility businesses need to keep costs under control.

Customer Relationship Management (CRM) Software

CRM tools allow companies to collect data about customer purchases, experiences and interactions with service agents. This reduces the need for staff to jump between multiple apps when speaking with customers, in turn increasing the efficacy of these interactions.

Security Tools

Implementing security tools such as next-generation firewalls (NGFWs), intrusion detection and response (IDR) solutions, and cloud-based behavior analysis can help reduce the risk of data compromise, meaning less money spent on recovery and remediation.

Remote Work

Finally, remote work options including virtual private networks (VPNs), teleconferencing tools and mobile devices can boost employee productivity and increase overall revenue to more than offset any spending on these services.

How MXOtech Can Help

While technology has the potential to save money, tech projects can also get very expensive, very quickly. Project management services from MXOtech can help your company keep new projects on track and reduce the risk of best-laid savings plans that end up costing more than you expect.

Consider that 70% of projects fail without project management and 9.9% of every dollar spent in these cases is wasted due to poor performance. Companies that invest in project management, meanwhile, waste 28 times less money than their non-PM counterparts.

With project management from MXOtech, you get both experience and expertise from certified project managers. By helping your team clarify current strategies and align key goals, improve employee and customer satisfaction, implement risk management and eliminate silos, MXOtech sets the stage for technology deployments that deliver critical line-of-business benefits without breaking the bank.

Let’s talk — click here to view our webinar on reducing costs.


How has business technology changed?

Business technology has successfully shifted from cost center to revenue driver. As a result, new technologies such as cloud computing and advanced security tools aren’t simply necessary budget items but can help companies better manage spending across departments and the organization. 

Where can technology save businesses money?

Technology offers multiple paths to business savings. Some of the most common include the cloud, remote work and connected devices, but when it comes to the question of how can businesses use technology to reduce costs, there are no hard and fast answers. Instead, any tech deployment that streamlines a process, reduces a risk or improves visibility can help save money.

How do companies get started with cost-saving technology deployments?

When it comes to finding cost-saving opportunities, the first step is an assessment of current IT infrastructure. For example, if your company has multiple processes and multiple applications in place to handle customer service, support and complaints, CRM tools may offer a simple way to cost savings. If you’re struggling to access key business data quickly and reliably, a shift to the cloud may be worthwhile.

Does it make more sense to stay in-house or opt for outside assistance?

New technologies can be adopted and implemented in-house or in partnership with an outside provider. While keeping things closer to home offers the benefit of control, it comes with the potential drawback of project complexity, which could lead to cost increases. Partnering with an experienced project management firm such as MXOtech can streamline the adoption process and increase the chances of successful first-time implementation.