MagicOrange Cost Transparency
Video Synopsis
MagicOrange Cost Transparency
It’s been around for a while now, and there’s no escaping it: digital transformation. Things like artificial intelligence, automation, the cloud, machine learning, and the Internet of Things—the advantages are there for all to see. But knowing how to make them work for you is the challenge.
Digital Transformation
Making the transformation is complex and costly, and it needs to be balanced against your business-as-usual activities. Whether it’s IT, finance, HR, marketing, or any other area of your organization, it is significantly and deeply impacted by digital transformation. Mapping out your digital journey requires great care and, more importantly, cost consideration in order to achieve maximum value.
Again, herein lies a challenge: there can be a lack of transparency and understanding around these investments and costs, and whether they are helping drive the innovation needed. Without this understanding and knowledge, you’re driving blind into the fog. Some of the challenges include the annual budget squeeze, lack of agility, lack of apparent value, and limited influence over costs. This can lead to a perception that internal service providers are inefficient or not delivering value, which in turn leads to business consumers feeling resentment.
Gaining Transparency of IT Spend
Of course, where there’s a problem, there’s usually a solution if you look in the right places and listen to the right advice. It all comes down to your approach. At MagicOrange, we advise creating transparency by properly mapping your landscape so you can clearly understand your business environment. It’s crucial to know exactly what everything costs, from total cost of ownership to an itemized bill for the products and services delivered. Once you’ve established a clear understanding of your operations, you can shift the conversation from cost to value and demonstrate how to control and influence these elements. Finally, you should constantly update your value proposition by introducing alternatives, improving quality, mitigating risks, and reducing costs, which will enable you to standardize, consolidate, and eliminate inefficiencies.
So there it is: understand, know, manage, and optimize. Follow these simple steps and use the cost savings to fund your organization’s digital transformation and ensure future prosperity.