Business owners know the value of getting more out of every money spent towards the growth of the business.
It’s easy to understand that marketing is useful, publicity is good for business, and hiring the best team are all good investments.
Technology Investments are sometimes seen as necessary investments that should be done or must be done to achieve some particular business goals or achieve regulatory requirements.
Technology is mostly seen as a valuable addendum required to move forward. This approach, while good in itself, places technology in the ‘requirements zone’. In the ‘requirements zone’, initiatives are viewed mostly and primarily as necessary things to be done and no more.
Unfortunately, businesses on this path are unable to harness the full value of their investments in technology. And with the slightest wind of change, these investments can either be dropped or delayed unnecessarily. Approvals take longer than should, more questions are asked than answers given, the very investment that should drive the business forward is questioned as suspect or a waste of funds and time.
From experience and history, when technology is presented as an option or an addition or only as a means to achieve a business goal because there is no other alternative way at the moment, more questions are asked against the investment. The exception is, if not investing will cause a loss to the business – when this is the case, it often scales through with little resistance.
On the other hand, if you invest in technology only as a means to preventing a financial loss or avoid sanctions by governing authorities you still are not getting the very best out of your investment. You likely will not invest in the stock market just because you do not want to loss money, you do so mainly because you want to make profits!
It is possible to get a good return on ALL technology investments and it is easy to do so. It is one thing that may not be affected by external factors if the approach is done right from the very start. Viewing investments as a means to make more profits ultimately leads to the ‘right approach’ and the right approach gives you better chances of success!
The right approach to technology investments is to see technology as a driving factor aimed at improving the bottom-line of the business with its effects being the following and more: internal efficiency, customer satisfaction, value creation, building trust, securing business assets, meeting regulatory requirements, gaining valuable insights to key business touch points et al.
With this approach, businesses can boldly outline the technology costs aligned with the specific and tangible increase in future value expected from every money, time and resources spent on every investment in technology.
This way, it is easier to get buy ins from key business stakeholders as accountability becomes a core part of the entire process.
1 plus 1 is 2, and 4 divided by 2 will always be 2. Specific outcomes can be identified and outlined to the finest details once careful and thorough thought is given to every technology investment. Sometimes an external Consultant/Business may be required for this, to leverage on experiences over the years and on the wide knowledge available to them to decide what needs to be done and why.
Before you invest any further in technology, ask:
How does this improve the business?
And in what measurable ways can one track its success?
What is the ROI on this, how does it specifically increase the bottom line?
There are more questions of course, but these are the basic questions to get started in the right direction!
Work with the right partner AND work with right reasons to get the most you can from your technology investments, including existing initiatives.
