Organizations nowadays are trying to keep up with the rapidly advancing technology to adapt their businesses to continuously shifting paradigms. Technology adoption is not a very straightforward decision as there are many variables that need to be taken care of. Though it requires a deep dive into the pain areas of the organization and understanding how an where technology can help, entrepreneurs are jumping on the bandwagon because of their busy schedules and inadequate knowledge. Because of this they may often end up taking the wrong decision.
With the appropriate technology investment decision, businesses can increase profitability and productivity. Any investment that is not suitable for a particular business’s needs ends up being a costly expense that could have been easily avoided. Entrepreneurs should note that the right technology is not only inexpensive but also provides a return on investment. To avoid making the wrong technology investment decision, here is a list of mistakes that any organization can avoid making.
- Not Developing Technology Vision: The primary step for any business decision is the formulation of a business and technology plan. This results in entrepreneurs jumping from one application system to another without a clear understanding of the benefits it would have on the business. A lack of business strategy leads to confusion and frustration and shows up as increased costs and disappointing results. According to statistics, any form of rework adds up to almost thirty per cent of the original project cost. Here, having a technology vision helps businesses take a proactive approach that helps in cost savings and increased productivity.
- Not understanding the difference between “Best Fit” and “Leading Edge”: With thousands of technology applications available in the market, the marketed products make it sound like a lucrative business investment. However, it often happens that the best available technology may not be the best fit for a business. It is often observed that purchasing any new technology system results in unused capacity. Here, a business entrepreneur can use a list of technologies and how that would help one. Then a vendor can act as a consultant by providing a technology solution that best aligns with the business needs.
- Support and Training Failure: After the technology investment decision has been made and the business has implemented it, company personnel must be given training on how to use it. Failure to provide training leads to under-utilization hence, entrepreneurs should accommodate training and support for the working personnel of the business. While purchasing the technology, one can also make sure that the vendors provide training and assistance. This helps avoid unnecessary cost addition and training from the vendors also helps in appropriate knowledge transfer on the use of the technology software.
- Not understanding the Potential of the Technology: Business entrepreneurs should always strategize and plan to stay ahead of their competitors. Even though new technology investments help businesses, the value, in the end, should also be considered. Research on the new technology based on facts and figures should be made to understand how it is affecting company profitability.
- Budget Establishment Failure: Business owners need to be aware of the cost that may be incurred during the implementation of a business solution.The research can be done on an individual level, or an outside consulting team can be hired to calculate the cost and value addition of the technology in the business.
- Failure to get the Team Onboard: When any investment decision on technology is made, it is always a wise decision to ask the employees for their thoughts about the same. This way, they can voice their concerns and any grievances can also be addressed. According to research, it is seen that employees respond better to new technology installation when they are aware of it beforehand.
Adding up all the mentioned points, the successful implementation of the same can result in business transformation. With a planned, budgeted, and pre-informed technology investment, the return and the value added can be higher.
Businesses are constantly on the lookout for technology solutions that are aligned with their business needs. With individual research or an external consultation team, one can easily formulate the best plan of action. With extra importance on technology vendors, their qualitative and quantitative benefits, the total cost of ownership, return on investment and payback period, Quadrant Knowledge Solutions acts as a bridge to connect businesses with the appropriate technology vendors. So, what are you waiting for? Book your briefing session now.