As I’ve embarked on this new adventure to transform the way companies view automation, a surprisingly consistent theme has emerged that has me baffled, I must admit.
There are companies that still believe that the more revenue they earn, the more they can afford to spend on earning that revenue.
Now I’m pretty sure that I’m not going to be chasing the Nobel Prize for economics any time soon, but I do know that just because you take more money in doesn’t mean you’re better off spending more than you need to in order to get that revenue.
On several occasions when asking someone how much it costs them to process different types of transactions, I’ve been advised that “it’s fine that on some we end up using more people and time to process them because we charge more to manage those transactions.” Really? It’s fine to leave money on the table?
In today’s business environment, speed is everything. It helps you gain market share, eliminate competitors before they even get going, earn the admiration of the press, your customers and your investors – and yes, even grow your earnings faster. But speed without efficiency results in friction, and that will eventually catch up to you.
Automating transaction processing is a fluid, simple and powerful way to drive profitability because the faster you get it done, the more transactions you can handle. And the more you can handle, the more you can grow, and the more you grow and keep your costs level or lower than before, the more profitable you can be.
So if your idea of growth is simply just earning more revenue, the fastest thing that may happen is your business heading for the exit. Don’t let higher revenues distract you, because it’s all about margin and profitability. And for that you need to make sure you can process your transactions faster and better than anyone else.