In a Downturn, Technology is Key to Process Improvements, Cutting Costs

Traditionally, IT investments take a back seat during a downturn. Based on my experience, that’s usually the last thing companies should do. It’s been proven that technology supports business process improvements (BPI) that drive sustainability initiatives, streamline data collection and monitoring for better governance and risk management and enables companies to cut costs, which is priority one when the markets head south.

Process improvements are even more valuable because they position companies to emerge as market leaders at the end of the downturn. This requires some contrarian courage, but the payoff can be extraordinary a few quarters down the road.

I know this because I’ve always used downturns as an impetus to innovate, with an eye toward leading the market and saving money. We have recently completed a business process update that is working well and positions the company to meet our short- and long-term goals.

If my experience doesn’t sway your opinion, here are some numbers from CIO Insight for you to consider:

• 73% of IT executives roll out business process improvement during a downturn so they can do more with fewer resources. They see it as a way to increase productivity.
• 37% use process improvements to stay competitive. This advantage tends to be overlooked. BPI gives you an unbeatable competitive advantage in a downturn.
• 69% say BPI helps them cut costs, which is what all good businesses try to do –downturn or not.
• 39% even think BPI helps them maximize revenue when they need it the most.
• 22% see it as a way of accelerating processes for a go-to-market advantage.

If your company is the first in your industry sector to leverage technology, generate BPIs, cut costs and position your company to do more with less, how can you fail to be the winner?

We’re even finding emerging research that suggests that sustainability initiatives help companies cut costs during an economic downturn. More about that later.

Add comment October 27th, 2008