Storm & Security

DIRECTORY & RESOURCE GUIDE 2014 / STORM & SECURITY PROTECTION 13 PROTECT / YOURSELF Changing technology can be challenging; not changing technology could be lethal. The failure of companies to adapt to changing technologies is a tragic tale. Big and small companies have failed to change or change as quickly as their competitors. Kodak, Montgomery Wards, Borders, AOL and Blackberry once led their industries and now are gone or on the verge of extinction because they failed to implement technologies that have already been developed. So to prosper in the coming years, here are five big areas of technological advancements that will improve your bottom line: 1. Risk Scoring with Big Data 2. Out-sourcing 3. Vehicle Management 4. Production Management 5. Advertising Data Analysis Big Data transformed the Internet and now it is transforming businesses by making information transparent and usable. Historically, insurance programs were based on an emotional response to a perceived problem; now, and into the future, insurance programs are being designed from informa- tion gathered and stored digitally allowing companies to pinpoint problems and solutions that effect every aspect of a business. Numeric risk scoring in the insurance side of a company is new territory currently being employed by industry leaders to improve the competitive advantage over their competition. Risk Score, a patented scoring process that generates a numerical value that can be used to compare a company's insurance cost to a competitor's or against the industry standard, can substantially improve the decision-making process allowing the development of procedures and processes to improve the bottom line. Tom Typrowitz, vice president of Work Tools International, noted, "Claims were being generated, but following the occurrences to make changes were difficult. Risk Scoring allowed our company to reduce insurance costs by eight percent the first year and six percent the following year. Taking the initiative to start the process was the most difficult part of the procedure, once underway the risk scoring and the alternatives outlined by the Risk Score program were immediately profitable." Do safety comparisons really matter? A study of 199 businesses showed that when measured and quantified over a two-year period, companies that were proactively managed had a claims rate of 1.26 per $10,000. The control group that had no measurement techniques had a loss value of 1.67 per $10,000. The percentages translate to 10 percent fewer workers compensation claims and 17 percent less loss-wages claims. Controlling lost-time claims has the largest effect on reducing a company's cost of coverage. Lowering lost-time claims by prevention, risk management, risk strategy and risk analysis generates direct expense control and drives additional savings to the bottom line. Considering that insurance cost has a proportional relationship to your profit; a proactive approach promoting positive outcomes increases your bottom line. Outsourcing Payroll As employee health care benefits soar and labor rates rise, the constant and continuous need to keep your business compliant with the latest updates to governmental policy changes means increased costs and possibly employer liability. The efficient use of technology has allowed payroll processing companies to generate a high quality, consistent product at half the cost of a payroll department. Lower costs and less liability lend themselves to improved business profitability. | by Don Leggett | Deploying Technology to Increase Profit Margins To compete and prosper, you must use the most advanced tools. There is nothing permanent except change. – Heraclitus, 500 BC.

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