When to prioritise investing in technology projects
Tuesday, June 23, 2020 - Philip White
Research reports that digital-first companies are 64% more likely to achieve their business goals than their peers. And that digital transformation and a focus on customer experience can generate a 20-30% increase in customer satisfaction and economic gains of 20-50%.
However, when is the best time for your organisation to prioritise technology?
If you’re close to signing off an investment in new technology, with a solutions provider selected and a project scoped, you now need to evaluate whether or not it takes precedence over all other business activities.
Justifying whether a technology transformation should be given the go-ahead is a business-critical decision requiring in-depth analysis.
There is a risk involved, not just with the budget allocated, but also with the possibility that if the new technology doesn’t work you risk business failure and significant profit loss.
However, with the right technology partner and a robust plan, a new digital application, onsite hardware roll-out or data analytics tool will be well-received and make a huge impact on business success.
This article aims to help decision makers identify when new technology should be prioritised, and when it’s not appropriate. We also share some top tips to ensure the success of a project from the outset.
When to Progress a Technology Project
Developing a new bespoke software solution, upgrading existing legacy systems or introducing new hardware is a significant investment. Here are a few key times when a technology project should be progressed:
When your business is experiencing fast-paced substantial growth and your existing systems are overwhelmed, hindering your expansion or having an impact on operations, customer satisfaction and profit.
Cost of legacy system maintenance is escalating
If you’re spending a significant portion of your IT budget on keeping old systems on ‘life support’ – and this figure is increasing every year – then this money would be better invested in a software development project to upgrade.
Risk of legacy systems is mounting
Many existing systems rely on old technology that isn’t secure from cyber-crimes or data corruption, paper which can be lost or destroyed, or spreadsheets and forms with no consistent control process. If this risk of inaccurate, unprotected or lost data is intensifying then it’s time to modernise.
New technology will add huge value to the business
If you’ve crunched the numbers and looked at your digital KPIs and know that new technology can and will add value.
Investing in technology that will be used by a higher percentage of staff or across wider teams will often be a better investment than software that only helps a small number of people in one team.
Off-the-shelf software lacks functionality
Often there are off-the-shelf software solutions for many standard business functions, such as accounting. Consider if you need a bespoke software system that is unique to your business goals and will do something specific to your processes or customers.
For example, if you’re a construction business looking for a bespoke customer portal application that is smartphone-friendly and can be used to select products, fixtures and fittings, enhancing customer experience.
Market / industry / business is changing and must evolve to survive
When the survival of your business is tied to your need to evolve with new technology due to widespread changes in the market.
When Not to Progress a Technology Project
There are times when it’s not appropriate to move forward with software projects, such as:
- Change in market trends rendering proposed new technology unsuitable
- Uncertain financial position
- Corporate restructures when it’s not clear what teams, products or systems are being combined, kept or scrapped
- Going through a period of significant change with unclear priorities
- Don’t have appropriate staff available to manage the technology project
The Right Mindset is Critical
Having the right mindset for driving the business forward with new technology is essential for the success of the project. Your organisation needs to have a visionary ethos, a healthy appetite for risk and a willingness to be a market leader rather than a market follower.
Investing in new technology will add a competitive advantage, and make your company stand out from the crowd with bespoke applications, tools and software, rather than using the same low-risk, off-the-shelf products that your competitors use.
Align with Wider Business Strategy and Long-Term Goals
To successfully digitalise your business, you should have a long-term view for technology that aligns to your wider business strategy and long-term goals.
By having a vision about how technology will be used in your business in years to come, you can build a roadmap to get there.
This plan can start with smaller digital projects and factor in ongoing investment that builds into systems for the future of the business, rather than meeting short-term objectives. It’s possible to begin with well-tested, small-scale projects that build a solid foundation for future technology rather than investing in a huge project which attempts to encompass everything all at once.
Understand Time Investment
A technology project has a cost investment. However, it will only succeed if you understand that you are entering into a two-way partnership with your solution provider, whether a software development company, hardware distributor or solutions partner - you must invest significant time in the project.
Allocating resources with the right skills and capabilities to manage the project internally, ensures your supplier receives timely feedback and approvals, as well as appropriate decisions.
It is also essential to get the right people involved from the start to help shape the development of your new technology. These should be staff members who will use the new software application or hardware on a day-to-day basis. They should also be available to extensively test prototypes and provide feedback. If the end-users aren’t involved, they have no sense of ownership and the new technology will often fail.
Prioritise Your Technology Investment
There are times when progressing a technology investment is a high priority, and other occasions when it’s inappropriate. By getting the timing right, and keeping in mind a few additional considerations, your new digital project will see your business skyrocket and leave the analogue era firmly in the past.
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