2 minute read
Business Operations
By Mike Leigh
Executive Summary:
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Technology works best when it is thoroughly evaluated, properly used, and provides ROI to your organization.
Send your questions or comments to Mike@ OpXSolutionsllc.com
Technological challenges
Some people think I am “anti-technology.” I carry around a paper planner, I draw diagrams on white boards, and I love to build layout models with cardboard and wood. I regularly caution my clients before they buy high-tech equipment or complex computer software systems, so it is not a stretch to think I’m against technology. But the truth is I love technology…when properly vetted and applied correctly.
Bluetooth is an example of a great technology when properly used. I love my wireless earbuds and speakers. But do I really need a Bluetooth enabled toothbrush connected to a phone app to help tell me if I am brushing properly? (Yes, my toothbrush does indeed have Bluetooth.)
Technology represents that new “shiny object” that looks cool to have. But without due diligence, you might make a bad investment that can cost your business time and money. Here are some typical errors when buying new technology:
• No ROI. Several years ago, one of my clients implemented a new computer system to help them run their operations.
Proponents claimed it would save the company $10M/year.
The cost to buy and implement it went into the millions.
Afterwards I saw higher costs in software support and slower transactions. There was indeed better data available to help run the company, but at no time did I see that data result in more profits. When deciding on new technology, carefully evaluate all the costs and estimate what the ROI is.
• Increased risk. Earlier this year, one of my clients had all their computers and servers infected with a virus. It effectively shut them down several days. Technology is great when it works but can be devastating when it does not. The more complex the technology, the more likely it will break, and the longer it will take to recover. Have a backup plan.
• Excess capability. New technology often comes with new functionality that is never used but adds to the cost. Some organizations invest in software that provides robust data gathering and analytics, but never use the data to make improvements. Only buy what you need.
Technology works best when it is thoroughly evaluated, properly used, and provides ROI to your organization. Avoid these typical errors to help ensure you make a good investment. Now excuse me - while I go to my app to determine the efficacy of my toothbrushing.
