One of the biggest challenges facing businesses is the need to manage costs efficiently, and effectively in order to retain a competitive edge. Certain costs continue to climb up every year such as building leases, suppliers costs, service charges, payroll related taxes and utilities.

However, the biggest cost drain for businesses tends to be labor. Yet, it seems like there are plenty of businesses thriving despite operating in an era of increasing labor costs.

How is that happening? Because they are using the right technology.

Businesses that are not able to adapt quickly to the evolving tides of technology are usually the ones left behind, but it is not as simple as that. A vast majority of businesses are not well equipped to manage these radical cost increases in an effective way. Investing in the right technology is far more important, and will get you the best return on investment.

But what is the right technology? Off the shelf financial and operational tools are too complex for small or medium sized businesses. Plus, they’re not catered to this particular business segment, rendering them less than useful. Other tools positioned for these segments are all proving to be more generic and clunky in nature, especially in terms of increasing integration issues with point of sale systems. Above all, they lack basic level intelligence to steer business managers towards areas of greater opportunities.

So How Can The Right Technology Help My Business Thrive?

  • Identifying inefficiencies

Using technology to identify inefficiencies needs to be at the top of your list when it comes to scaling for your business to grow. Whether your labor costs are higher than anticipated, or you are not able to meet your business needs as efficiently as you could — where is the gap?

The right technology in place can help you spot inefficiencies early on, and help you manage your overall costs accordingly. While investing in technology might seem like an expensive endeavor right now, just remember that inefficiency is far expensive for your business in the long-run…so why make your business suffer if you have the right tools at hand?

  • Constant learning from historical data analysis

You might not realize it initially, but your business is in a constant state of data collection. While you might be tracking it manually in some places, if it is not factoring into your business decisions, it is being underutilized. Most businesses eschew data analysis as being a manual, time-consuming process, but that excuse does not hold much weight anymore.

Implementing the right technological solution allows you to capture data in real-time, eliminating the manual element and use it as a tool for constant learning. For example, artificial intelligence based solutions use your past and current data, and continuously learn from it. The resulting predictive analytics can be used as a tool to reduce costs such as labor, and make your overall operations far more productive.

  • Using technology as a blueprint for future strategy

The right technological infrastructure in place can be a major advantage when you are constructing future strategies for your business. By spotting inefficiencies early on, and using tools such as artificial intelligence and predictive analytics, you can understand exactly where your business is currently and where it can go. It can help design fundamental operations with far more insight, and use it to improve your business health over time to gain more value. These solutions are not just one-off costs, they provide an incredible amount of ROI both in the short-term and the long-term, as long as you invest in the right technology for your unique business.