More often than not, budgets are tight. On top of that, the true value a new software project will deliver can be unclear, making it difficult for IT departments to effectively articulate and justify their budget requirements. This can lead to budgets that don’t align with the organization’s needs, which in turn can leave the business-side with a growing list of failed projects.
It’s an all too familiar problem with traditional software development methodologies – fortunately, there’s another way. Let’s look at how no-code application development enables organizations to get greater business value faster for two typical metrics: cost reduction and revenue enhancement.
Bigger savings in a fraction of the time
Using traditional software development methods to reduce costs within an organization presents a sort of paradox: the longer the software development lifecycle (SDLC), the more billable time you require from expensive full-stack developers, and the longer the original expense is draining funds. Though you may eventually get those costs down, the time spent comes with a heavy price tag.
With no-code application development, however, solutions can be developed in weeks or even days, instead of a year or more, meaning you can begin to reap the benefits of reduced costs almost immediately. The sooner you reduce costs, the sooner the savings can be allocated to other avenues like new, innovative business ventures. Crucially, the speed at which results will be delivered enables IT departments to create more effective business cases for securing the budget they need.
Examples of rapid cost savings with no-code
- The City of Zaanstad saves €2.4m over 4 years by replacing its legacy system
- EDGE Technologies replaces 7 separate software licenses (and achieves a 20% increase in productivity) with no-code
The race to enhance revenue
Determining the true business value of a new service or product to sell to new or existing customers isn’t always as clearcut as it may sound. One metric that can make revenue enhancement somewhat easier to quantify is time-to-market, which has been proven to positively impact both revenue and market share. It makes sense, doesn’t it? As an oversimplified example, if you launch a product in January, you generate five months more revenue than if you were to launch the same product in June.
We all know how markets and consumer behavior have a habit of changing in a New York minute. Taking the same example as above, imagine you launch your product in January yet your competitor doesn’t launch until June. As well as having had the opportunity to gain market share, your product will have benefitted from five extra months of testing and iteration. How’s that for a competitive edge?
The speed afforded by no-code application development platforms enables organizations to develop advanced solutions in a fraction of the time of traditional methods, and the results speak for themselves. We’re talking the potential to generate new lines of revenue in a couple of months versus a year or more.
Examples of shortening time-to-market to enhance revenue with no-code
- Dutch insurance company, Univé, lanches an innovative new service and cuts time-to-market from 1 year to 2.5 months with no-code
- Précon puts a stop to shadow IT and cuts time-to-market by 75%
Determining business value should be an essential part of the budgeting process if budgets are to appropriately represent the needs and goals of the organization. By utilizing the speed of no-code to cut costs and enhance revenue, organizations are seeing greater business value than they ever thought possible.
One thing is for sure, it’s easier to make an effective case for your IT budget requirements when the expected business value of the investment can be delivered in a matter of months instead of years.