There’s no doubt that technology represents huge business across the globe, with this lucrative and diverse marketplace continuing to grow year-on-year.
As recently as 2018, global tech spending peaked at a staggering $3.2 trillion, while this number could continue to increase incrementally in an increasingly remote and technology-led post-coronavirus landscape.
Future growth will also be driven by the increased application of high-tech solutions in developing economies. For example, the UAE is expected to spend $16.7 billion on information and communications technology this year, with this sum up 2.5% in relation to last year’s figures.
It’s also fair to surmise that technology and innovation can make your business considerably more profitable over time. But why is this the case, and what technologies are central to this drive?
Why is Technology Key to Business Profitability?
There are various ways in which technology can make businesses more profitable, depending on the nature of each firm and the precise applications.
However, one of the most obvious ways is by creating a brand new market for businesses to target, by enabling firms to market themselves online and reach an increasingly digital audience.
Not only is the online market vast and diverse, but it’s also relatively low cost, which means that companies can establish themselves in the virtual space without having to significantly increase their operational costs.
This can translate into increased turnover and profitability over time, particularly as you transition more of your business online and minimise operational costs further.
On a similar note, the utilisation of online platforms such as Google and various social media channels has created more cost-effective marketing campaigns.
This not only reduces the typical costs associated with marketing, but it also allows marketers to become more efficient and targeted in their approach while optimising sales conversions over time.
What are the Prime Examples of Technology Helping Businesses to Become More Profitable?
There are plenty of examples of how technology can help businesses to become more profitable, with big data offering a relevant case in point.
Make no mistake; more than 40% of small businesses believe that big data is inextricably linked to increased profits, while the development of open-source software on a mass scale is making this more accessible to firms across the globe.
Financial market traders also utilise various technologies to optimise profitability, especially in the digital age where trading activity is driven through online brokerage sites.
In this respect, platforms such as the MetaTrader 5 offer instant access to a broad range of financial markets, while this can be downloaded onto any mobile or desktop device. This is also home to additional technologies such as in-depth technical indicators and even “expert advisors”, the latter of which allow for automated trading based on insightful algorithms.
From a more general perspective, the global rollout of 5G also has the potential to boost business profitability, particularly with this technology up to 100-times quicker than the 4G alternative.
This can drive incremental savings over time, boosting profitability through improved efficiency in the process.