Nowadays, technology is a part of everything we do. From how we communicate with each other to how we carry out business activities, everything is highly influenced by technology. When it comes to the business sector, the benefits that businesses are reaping due to advanced technology are too many to count.
There is no section or part of a business that has not seen revolutionary success by employing the latest technologies. From the finance department to marketing and accounting, every department is now performing better than ever by using relevant software and updated technologies and applications.
Also, the pandemic made it clear how important technology is for businesses. As offices were forced to shut down, only businesses with the technological capacity to adopt remote working models succeeded and survived.
Technology has provided small businesses with a competitive edge, too. Integrating technology smartly into their business operations can give tough competition to business giants.
So, let’s look at four ways technology benefits businesses.
A single business has many business operations to perform. And now, some technological tools or solutions make it easy to perform relevant tasks and ensure they are completed without any error. For example, the finance department is a core department in any business, and it deals with all accounting and financial matters of a business. However, it can be very hard to keep up with and comply with all the updated and in-effect rules and regulations, for example, in the case of lease accounting.
You can use lease accounting software to simplify the entire process, as it has built-in governance and classification for lessors and lessees. So you will know instantly whether the way you are doing it is right or not. This way, financial operations will be error-free and get done on time. According to a report by VMware and ForbesInsight, firms that empower their employees by making apps easily accessible report their employees spending 17% less time doing manual tasks, their team collaboration increased by 16%, and they saw 16% faster decision-making.
Technologies like AI and data analysis also have tremendous positive effects. According to Gartner, Inc., AI will increase worker productivity globally by 6.2 billion hours. Also, research states that AI and big data tech can help automate almost 80% of all physical work, 70% of data processing tasks, and 60% of data collecting work.
Not only has technology enhanced communication within businesses but also among businesses and consumers. When it comes to internal communication in businesses, software solutions like Zoom, Microsoft Teams, etc., have made it so easy to be in contact with each other. Several tools allow recording calls and meetings, so in case someone misses it, they can still have access to important information. Stats show that operational efficiency increased by 131% due to collaborative tools.
Better communication means better performance. When all the department heads and employees can easily contact each other, it makes them work like a single, powerful unit. It’s also easier to frequently contact suppliers and discuss items they need to restock; the factory manager can contact the shipment coordinators in different locations, ruling out any disruptions, etc. Thus, with technology, lagged communication leaves the equation.
Similarly, with the help of technological tools, businesses can communicate easily with customers and get customers’ data that is used to drive significant insights about consumer behavior. It helps to create personalized messaging, track buyer-seller conversations, etc. This leads to improved marketing and increased sales. With live chats available on websites, consumers can get in touch with the business anytime.
Technology enables employees to get things done quickly, leading to a reduction in costs. And reduced costs mean increased profits. For example, when a task is automated with the help of artificial intelligence, there is no need to recheck it. This leads to a significant decrease in operating costs. According to BARC research, those businesses that used big data tech tools experienced an 8% increase in profits and a 10% decrease in costs. When business operations are backed by technology, they are less prone to breaking down, thus decreasing opportunity costs. This leads to a corresponding rise in profit levels.
Those enterprises that employ business intelligence and analytics experience an average ROI of 1300%. Digitally tech-equipped companies are 26% more profitable than less digitally mature peers. 56% of CEOs report that they were able to increase profits due to the success achieved through digital technologies.
Also, with the help of advanced communication technologies, as mentioned above, a business can easily avoid many expenses. For example, as a business owner, you can contact anyone and assess any situation with live video calls. You don’t need to travel to every one of your business’s branches in each state. If you adopt a hybrid work model by employing the latest technologies, you will significantly reduce costs in electricity bills, rent, etc.
Technology allows businesses to carry out activities smoothly and increase customer satisfaction rates. Technology not only satisfies customers but also brings them to you in the first place. With the availability of the internet of things (IoT) and voice search, customers can find your products online.
With the latest tools, you can make a unique website for your business. There, with live chat channels, you can engage customers. Consumers expect to find easy ways of communicating with brands nowadays. As a result of the pandemic, 65% of customer interactions are now being digitized. A report states that 88% of customers expect businesses to accelerate digital initiatives to serve customers better. They are more likely to buy from you if they get a prompt response.
You can also use review request software and set automated emails and notifications for customers to give reviews about their experience with your products or services. When you integrate reviews on your website, more viewers will buy from you after seeing positive reviews. According to McKinsey leaders, digital transformation in a business with the principal focus on customer experience increases customer satisfaction by 20% to 30% and generates 20% to 50% more economic gains.
Today, each step of doing business involves technology. Technology has allowed businesses to carry out operations more accurately, with fewer costs and effort. Read through these four ways to know how technology is beneficial for businesses.