Improving operating profit margin can involve either bringing in more money or spending less. Often these two approaches to improving profit margins are interrelated: increasing sales can enable a company to achieve efficiencies through economies of scale, lowering operating costs while simultaneously bringing in extra revenue...read more
Technology impacts both increasing sales and lowering operating cost
The fastest way to grow your profits is often to improve your margins. Many businesses don't like to talk about margins because they feel increasing margins requires large technology investments, but that simply isn't the case. There are a number of steps you can take to improve your margins without taking on further investments...read more
Understanding Impact: 3 critical items to consider increasing Profit Margins
Revenue: Technology can be a powerful engine for revenue growth and increased profitability. According to recent research by Jacquette consulting, data from several other studies, along with their our own observations over 16 years of development projects, supports our assertion. In fact, IT investment often pays off better than investment in advertising or R&D. Some of the key impact areas on revenue:...read more
- Business process automation
- Increase operation efficiencies, scalability
- Customer service improvement with automation
- Sales process enhancement with technology automation
Payroll Most business leaders understand their biggest expense in business is Payroll. Regardless of staff working or waiting for technology issues to be resolved, you still have to provide payroll. All businesses have same hours weekly, monthly or yearly to generate desire revenue. As a business leader, we all want our teams to invest more, if not all of their time on revenue generating items. Consider time spent on following items instead of revenue generating items: ...read more
- Training issues: Employee searching solutions on-line or waiting for answer
- Technology related issues
- Coordinating technology issues/solution
- Business process issues – lack of technology process
- Turn-overs and training gaps
- Lack of documentation for both process and technology
- Approval and ordering process for hardware and software purchases
Soft Cost: Being inefficient and unproductive has a cost. Sometimes it’s the result of the employee not having the capabilities to perform the job, but in a large number of cases it’s because the company’s operations, business approach, management and workflow are outdated and antiquated. It’s how the company conducts business that raises its soft costs. Companies that actively try to reduce their soft costs are able to improve efficiencies and productivity. It helps to free up valuable time, conserve company resources and streamline operations so that employees can do what they do best...read more
Top 3 Ways to improve Profit Margin
Process: Most modern businesses deploy IT process to align their technology with business goals as on-going basis. IT process also runs ongoing testing and gap analysis to update IT Strategy, roadmaps and budget. This will support the entire organization’s technology needs, from running the service desk to driving innovation. And IT Process should also eliminate all HR and business risks...read more
IT Strategy: Accidental success is dangerous. Strategy is “how we succeed.” Every organization require a roadmap for IT operations for cost and resource planning. And detailed documented IT Strategy with budget will provide insights to operation improvement and efficiencies. Having a clear understanding of the business is crucial to creating an IT strategy that aligns with, enables, and drives the business forward...read more
Discipline – People: Peter Drucker (borrowing from Marshall McLuhan) wrote that “neither technology or people determines the other, but each shapes the other.” All business improvements start and ends with people. Discipline and commitment to improvement by both leadership and staff is key to drive any improvement. Business success stems from having the right people and the right processes in place.
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