Driving top-line is just a means to an end. That end is profitability. Bottom-line result. However, Startups focus on achieving product-market fit and are not bothered about revenues and profits. Mid-sized organizations in a growing market forsake profitability in the interim to grab as much market share as possible. So, if you are neither a startup nor a mid-sized top-line chasing organization, then your goal is profitability.
Though your profitability depends on a number of business parameters, Operational Excellence (AKA Business Optimization) is the most important metric to pursue, and this is achieved primarily thru’ the power of IT.
All businesses essentially does two things:
- Experimentation: where you focus on testing hypotheses – on new product ideas, service lines, sales tactics, marketing channels, business models etc
- Optimization: where you focus on optimizing your end-end business processes. Ex., shorten sales cycles, automate marketing, reduce A/R aging, optimize inventory turnover etc
Experimentation spots opportunities and Optimization wins the battle in the marketplace. Neither “optimizing in experimentation stage” nor “experimenting in optimization stage” will produce the bottom-line results you are looking for. The key is to do the right thing at the right time.
Typically, there are two costs that influence Operational Excellence in your organization:
- Acquisition Cost
- Operating Cost
Slashing budgets and layoffs are the easiest routes to drive profits. However, controlling your (1) Acquisition (Customer, Employee, Supplier) Costs and (2) Business Operational Costs can not only drive profits for you, but give you the ability to build a system around it to drive these costs down ‘continuously’. Therein lays the power of IT.
Look at the below pyramid and assess in what layers does each of your business activities fall under:
The ‘Operational’ and ‘Tactical’ layers of the above pyramid hold the key to achieving Operational Excellence. So, do you have the ‘right’ technology solutions in place to drive down cost continuously?
Solutions that can significantly contribute to your bottom-line growth are,
To develop and execute on a business strategy to drive profits using the power of technology is indeed a challenge. SP Sysnet has been offering technology Consulting, Solutions, Products and Services across operational and tactical layers to help grow several organizations, profitably.
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