Business objective rather than cost factor

10. August 2021

The implementation of IT projects for SMEs is a hot topic that promises added value and a competitive advantage over those who do not deal with it. This article explains why this is indeed the case.

Implementing IT projects means investing in the infrastructure of your company. This includes knowing what added value you can expect from such a project. As a rule, you expect a competitive advantage over your competitors, higher sales and a reduction in running costs. The example of a steel online store shows that the business value can be estimated precisely if the business goals are known and the business case is defined in advance. As a result, the technical effort and the financial evaluation can be carried out accurately, and the IT project grows to success.

 

The goals

What digital opportunities can be exploited for maximum profit? What do I want to achieve with an online store? Why do I want to sell my steel online? How can I best achieve my business goals? These are precisely the questions that need to be addressed when considering the digitization of one's own business. It's about defining goals that can be achieved with specific measures (business cases).

Instead of elaborate Industrie 4.0 automation chains, the simplest measure and the first step is to digitize your own sales. This includes saving costs and personnel, giving a modern impression to the outside world, automating sales, and ensuring constant availability. All these goals can be achieved with your own steel store.

 
The added value

The added value of an e-commerce platform for your own steel trade is manifold. The confusing paper documentation is eliminated, complexity is reduced, transparency is increased, comprehensibility is improved and freedom from errors is integrated. A clear and permanent pricing of your own products ensures long-term and sustainable profit.

 

Keep it simple

Complexity - no, thanks! Installation, programming, maintenance, support, server costs, consulting - all in one package taht can be put together according to individual wishes. No off-the-shelf product but a tailor-made system for all wishes - and still precisely calculated. Thus, the business value of the IT project can be calculated exactly and adapted to the business goal appropriately.

Due to the precise calculation - no matter if 5, 15 or 30.000€ - the costs for such an investment are of no concern on the long run, because they are hardly relevant for the business goal. By saving costs, opening up new markets, increased throughput and wider reach, the IT project pays for itself within a brief period.

The development and implementation costs of an online steel store should be based on the level of the business objective. If, for example, a business target of 200,000€ per year is envisaged, investments of 30,000€ are relatively low. If there is no strategy for digitization in the company and the digital business target is €10,000, even an investment of €5,000 seems excessive. Within these values, it is easy to see that it is important to record and quantify the digitization efforts. Based on this, the development costs are always to be seen relatively.

 

The implementation

How can the goals be implemented and the added value reaped? The reduction of running costs is achieved by reallocating resources. Personnel who dealt with sales, answering the phone, changing prices per kg by phone, and passing them on manually can be moved to other areas - the new online store takes care of all that. A modern impression comes directly with its own e-commerce platform. The latest programming, a steel store that adapts to any device, cuts and 3D representations in real time, the availability of factory certificates in any place at any time. The sale runs through the system without intermediate positions. From the catalog and pricing to the shopping cart and printout for the warehouse: everything runs directly and without detours - saving time, money and resources.

The digital sales channel keeps all documents available at all times - invoices, cut lists, factory certificates. The need for paper files, printed documents and paperwork is eliminated. Complexity is reduced many times over through automation. The end customer does not have to adhere to any opening hours when ordering steel, can browse at any time and see the product live in the catalog. They don't have a table in front of their eyes, but 3D representations, with dimensions, material, design, and much more immediately in view. This not only increases confidence, but also greatly enhances transparency and comprehensibility.

 
Conclusion

Your own steel store offers extensive advantages, turns out not to be a complex cost factor but a possibility to use competitive advantages and to achieve business goals. Especially a provider like omnoto ensures comprehensive consulting, transparency of the investment amount, and the runtime - for a precise implementation of the digitization efforts.