How Can Technology Help With Rising Business Costs

 UK businesses are facing something of an existential crisis in 2022, as global instabilities collide with national economic issues to create a perfect storm of rising costs and dwindling opportunities. With business closures set to rise considerably, forward-thinking businesses are looking for new and innovative ways to weather the storm.

The Economic Climate

Business costs are experiencing dramatic rises, as a result of a number of independent factors. Energy bills are a major factor, as many companies face a 300% rise in the cost of gas and electricity. Logistics and supply have also become prohibitively expensive for many, with the UK’s departure from the EU affecting transport and haulage and leading to significant drops in supply.

Tech Solutions for Businesses

Where rising costs are largely unavoidable without government intervention, there are novel ways in which businesses can tackle their own rising costs. New technologies are disrupting standard operation, providing new and cost-effective alternatives to conventional processes.

Of course, technological solutions require investment – something that may run counter to the short-term ambitions of businesses preparing for downturn. But the long-term benefits can often outstrip the short-term outlay, with the right approach and advice.

Frictionless Checkout

One area of business and commerce that has seen marked improvement through technology is the handling of finances and payments. E-commerce platforms have been able to flourish through the implementation of one-click checkouts and instant inputs for card details. Consultation with a fintech law firm can help a business safely implement frictionless digital checkouts, removing barriers to new customers while retaining the safety of their information.

AI and IoT

There are two key technological innovations that have captured the minds of the wider public: AI and IoT. AI, of course, stands for artificial intelligence; AI-assisted programs and algorithms enables the streamlined performance of routine tasks and processes, minimising man-hour cost on projects and administration.

Meanwhile, IoT stands for Internet of Things, and refers to the connectivity of devices via the internet. Equipment can share sensor information and user statistics instantly, giving feedback on performance and allowing you to make structured changes to your model or manufacturing process.

Together, AI and IoT are powerful efficiency tools, reducing labour costs and increasing access to useful data and results.

 

Digital Twins

The advancement of IoT technology has precipitated a slew of new technological innovations and integrations. One key advancement is in modelling and simulation; ‘digital twin’ describes a virtual analogue to a physical object, created and directly influenced by data from the physical object – and able to inform the physical object through simulation.

While still in relatively early stages of integration, digital twins can provide a useful, low-cost way of stress-testing systems and equipment. Manufacturing lines can be streamlined through simulation and iteration, and product development can occur on a much more efficient level.

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