Modernization has evolved into a ubiquitous element of the business landscape: According to a recent study by Gartner, 89% of board directors report that digital initiatives are embedded in their growth strategies. This makes modernization a critical element of many companies’ IT infrastructures.
Here’s what modernizing your infrastructure involves, some of the reasons why it can be effective, and examples of how it can work.
What Does Modernizing Your Infrastructure Involve?
Modernizing your infrastructure involves using technology to design and implement ways of automating tasks and boosting efficiency. In many cases, managers build a modernization effort around software applications that process business data, integrate it with core systems, and use it to reduce human error or improve efficiency.
How Does Modernizing Your Infrastructure Help Your Company Excel?
When you modernize your infrastructure, your company positions itself to produce higher quality products and services faster and while spending less. Modernization efforts often reduce spending because they include automation tools and technology. A modernization initiative also improves your ability to grow and adjust to changing circumstances. As a result, you can:
- Save money. You give your current employees the tools they need to do more with less effort, which limits payroll spending. You can also predict maintenance issues before they result in expensive downtime.
- Improve scalability. When you use digital systems to manage core functions, expansion is often a simple matter of duplicating or adding to existing modules. You can, essentially, click and drag your way to a bigger business.
- Automate business-critical functions. For example, you can automate financial operations for accounting, employee time management for HR, or your inventory ordering system. You can also use outsourced IT services to automate repetitive or mundane tasks.
- Improve cybersecurity. A modernized cybersecurity infrastructure can automatically detect and mitigate threats, alert stakeholders, spin up backup systems, and alert key stakeholders. With managed IT services, a third party can perform these and other tasks for you.
- Boost agility. A modernized infrastructure gives you the ability to make changes according to shifting circumstances. For instance, a construction company using an enterprise resource planning (ERP) solution can see, in a matter of moments, how much it would cost to change its focus from commercial to residential projects.
- Make data-based decisions. A modernized infrastructure can collect and analyze many data points simultaneously. You can generate reports based on hypothetical scenarios, compare them side-by-side, and make a decision accordingly.
How Does Modernizing Your Infrastructure Work?
Infrastructure modernization works by pinpointing efficiency-boosting opportunities and then using technology to capitalize on them. A common example would be implementing a combination of a data warehouse and an analytics tool.
For example, suppose a manufacturer’s machines produce reams of data every day. The company has data regarding the speed at which machines make and assemble products, the wear and tear on each piece of equipment, the frequency with which they have to be repaired, machine downtime, and much more. The company also has environmental data gleaned from the temperature and humidity levels on the manufacturing floor.
On top of that, there’s employee performance data, including when different workers sign in, the lengths of their breaks, when they take time off, and more.
By implementing a data warehouse and analytics solution, the company can collect, store, and analyze all of this data and more. It can then use data analysis to discover ways to optimize efficiency and cut costs by:
- Changing fragile machine parts regularly
- Adjusting the atmospheric temperature and humidity levels in a way that lengthens the operational life of equipment
- Deciding which employees to assign to specific shifts, building more efficient teams
- Adjusting insurance coverage for equipment based on performance and maintenance information.
Of course, there’s a lot more you can do with a data warehouse and analysis system, and how you put your modernization to work will depend on your business goals.
How Infrastructure Modernization Benefits Service Providers
Venture capital, finance, accounting, and other service-based companies benefit from modernization because they automatically collect and process data that can boost their bottom lines. With real-time business data, a company can also give customers unique products that add genuine value they’re willing to pay for.
For example, suppose a venture capital firm needs to decide which kinds of companies to fund over the next fiscal year. Using a modernized accounting infrastructure, managers can design customized reports that provide business performance information in real time.
For instance, you can set up a system that tells you the return on investment (ROI) for different investment types. For example, you may discover that investing in tech companies provides a higher initial ROI than backing manufacturers—but only over the first two years. Using this information, you may choose to adjust your investment strategy, shifting from tech to manufacturing, for a stronger long-term portfolio.
As another example, an accounting firm can custom-design reporting systems that give their business customers real-time snapshots of performance—using whatever parameters the company prefers.
For instance, the accounting firm can set up a cloud-based system that tells the business how much it makes each day in comparison to historical earnings. On the same screen, the company could see overhead spending levels and how they compare to the previous week, month, or year.
Modernize Your Infrastructure with Robust Network Solutions
The infrastructure modernization possibilities are endless, especially when you take into consideration the powerful role of data collection, analysis, and reporting. Whether you want to fine-tune your cybersecurity, improve IT support, create new solutions or better experiences for customers, or take efficiency to the next level, you can rely on Robust Network Solutions to get you there. Discover the modernization possibilities by touching base with us today.