Why marketers should care that Total Cost of Ownership (TCO) in IT has become obsolete
Encodify
3 min read
As the world - and marketing - change more rapidly than ever, we must move our focus from Total Cost of Ownership (TCO) to Increasing Benefits of Ownership (IBO). Why? Because cost and benefits evolve. We start with a business case based on the value we know today. But as we all know, the world is dynamic, and changes occur as soon as the business case is done. The beauty of Encodify’s longstanding innovations, such as no-code and a flexible data model, is the fast innovation curve and time to market that we are capable of.
Marketing as a discipline is becoming increasingly dependent on its tech stack. The domain is anchored in data, automation, and an increasing number of tools where collaboration with IT is at the core of marketing. So this one is for you - the marketer who realises that a holistic approach is needed and is tired of thinking about software investments solely regarding Total Cost of Ownership (TCO). While TCO is an important metric, it often leads to a narrow focus on minimising direct and indirect IT costs rather than maximising benefits. That's why it's time to shift the conversation to Increasing Benefits of Ownership (IBO). It is time to change the conversation to a more holistic view of the benefits of IT investments, including the benefits of no-code configurability.
When it comes to IT investments, no-code configurability is a game-changer. No-code platforms empower users to configure software without writing code, so they can quickly and easily adapt to changing business needs. But don't just take our word for it - there is evidence to support the benefits of no-code configurability.
A recent survey by Forrester Consulting found that organisations using low-code and no-code platforms achieved an average ROI of 288% over three years. The study also found that these organisations experienced an average reduction of 60% in the time it took to develop and deploy applications.
In the marketing space specifically, a report by Econsultancy found that organisations using marketing automation software achieved an average ROI of 23x. The report also highlighted the importance of flexibility and customisation in marketing software, stating that "a key feature of marketing automation platforms is their ability to be customised and extended, enabling businesses to tailor the software to their specific needs and workflows."
These statistics demonstrate the significant benefits of no-code configurability regarding ROI and agility. By empowering users to configure software without writing code, no-code platforms enable organisations to respond quickly to changing business needs and deliver value faster.
But it's not just about ROI - no-code configurability also enables greater collaboration and innovation. A report by Mckinsey & Company found that "companies with the most advanced digital capabilities are eight times more likely to gain market share and twice as likely to achieve profitability." By enabling marketing teams to work closely with IT and other departments to develop and launch campaigns that align with overall business objectives, no-code configurability promotes a culture of innovation and cross-functional collaboration.
Time to market as part of the new equation
The benefits of no-code configurability extend beyond just ROI and collaboration. No-code platforms also enable organisations to accelerate their time to market, which can be a critical factor in staying competitive and meeting customer needs.
Traditional software development processes can be slow and cumbersome, with long lead times for changes and updates. This can be a significant roadblock to innovation and agility as businesses need help to keep up with the fast-paced demands of the market.
In contrast, no-code configurability enables organisations to quickly and easily change their software systems without relying on IT or development teams. This means marketing teams can launch campaigns faster, respond to changing market conditions more quickly, and ultimately deliver value to customers faster.
A study by Gartner found that low-code and no-code platforms can reduce application development time by 90%. This enables organisations to bring products and services to market faster, which can be a significant competitive advantage in today's fast-paced business landscape.
By reducing development time and enabling faster time-to-market, no-code configurability can help organisations stay ahead of the competition and meet the evolving needs of their customers. This can be especially important in marketing, where launching campaigns quickly and responding to changing market conditions can be critical to success.
Welcome to the Increasing Benefits of Ownership-paradigm
In conclusion, no-code configurability is a powerful tool for increasing ownership benefits, accelerating market time, and driving business agility. By empowering marketing teams to quickly and easily change their software systems, no-code platforms enable organisations to stay ahead of the competition and deliver value to customers faster. This makes no-code configurability a must-have capability for any organisation looking to remain competitive and succeed in the long term.
