When it comes to investing in business information technology, it is very important that decisions are made based on business reality rather than impulse as we see on many occasions.
This article provides heads-up on signs that may indicate that your small business after all need to invest in new information technology.
Ten Things That Tells You It Is Time To Acquire Or Upgrade Your Existing Business Technology Infrastructure
When Processes Are Taking Too Much Time
Business processes are the lifeblood of every enterprise. The speeds at which processes are processed determine to a great extent how successful or otherwise a business will be.
As a small business owner, you know that it is time to shop around for new business information technology when things are not done as quickly and efficiently as they should be. In practice, it is sometimes difficult to determine what constitutes reasonable processing time but, doing some benchmarking combined with some elements of luck will help
When the Competition Becomes Automated Centric
The trend is always your friend in any type of business. One of the ingredients of business critical success factors is to identify the trend and join the bandwagon before it becomes saturated.
You know that the time is ripe for that investment in new business information technologies when your competitors are getting things done on autopilot. Most businesses now rely on automation for most activities like packaging for example.
When Your Business Requires the Use of Analytics
The big data mantra is no doubt one of the buzz word that proponents claim is the future of doing business. The rush for smartphones and other portable devices combined by the ever dropping cost of connecting to the internet has given rise to the generation of billions unstructured data and to analyse this date, one form of analytical tool or the other is required.
Businesses should seriously consider investing in business information technology that will allow her to explore the potentials that are hidden in big data.
When Individual Departments and Processes Become Complex
Businesses by nature are designed to grow and this growth can sometimes lead to unexpected complexity. In the past, business growth and complexities were solved by simply hiring more staff to help achieve the business objectives of the organization.
But nowadays, the fact that the cost of acquiring new technology is cheaper than hiring the required amount of manpower that is required to get things done, it makes economic sense to make that investment in new business information technology.
When Your Customers Start Questioning Your Orthodox Way of Doing Things
Customers’ needs are increasingly becoming insatiable as we continuously advance in our exploration of information technology. I remember telling one of my clients that it will take me 1 week to prepare a sell side equity report and was greeted by the gruel look of ‘what?
This quickly reminds me of the fact that fast is no longer fast enough in this superfast era of ours. To this end, if your customers start exhibiting signs of dissatisfaction with the amount of time taken to meet their needs, it then shows that plans to get new business information technology is due if not overdue.
When Manual Processes Are Negatively Impacting Your Profit
Manual processes are not cheap by any standard and are only tolerated when there is no suitable substitute. Manual processes are major contributor to quality cost, especially quality cost of non-conformance.
It doesn’t take Einstein to figure out that new investment in business IT is needed when quality cost of non-performance that is associated with manual processes outweighs the extra cost of buying new equipment.
When Sales Figure Stagnates or Declines
There is a cause and effect relationship between sales figure and business processes. Research shows that companies that deliver quality products on time outperform their counterparts that take longer time to deliver same quality products
Stagnation or decline in sales could be a warning sign that change is inevitable. It could indicate that your normal accounting software is no longer adequate for the level of activity in your business. Implementation of an ERP system could revitalise the fortune of a business. There are loads of cheap ERP systems that small and medium scale businesses can buy.
When Your Business Can No Longer Appeal To Talented Employees
No one wants to work for a business that is not forward thinking especially the smart and intelligent ones. You will agree with me that businesses are as good as the people they hire.
You know that there is danger when a going concern stops attracting young talent. The inability of a company to employ quality staff could lead to bankruptcy. To avoid this, it is highly recommended that businesses evolve with technological trends among other things.
When the Need for Security Becomes Important
We are all witness to the recent major security flaws in information technology. Heartbleed is a classic example. The need to secure your accounting system for example can be an indication that an upgrade is needed.
When the Cost of Maintaining Your Current Infrastructure Outweighs the Benefits
As systems grow old, the cost of maintaining them will gradually creep up and could spiral out of hand if not swiftly replaced. There is no need for you to hire a professional financial planner only to tell you that you need to implement a change programme before you do it.
Businesses should not investment in business information technology for the fun of doing so but should do so when some or all of the signs and symptoms discussed in the article are evident.
Note that the symptoms and signs pointing to the need to acquire new business IT as discussed in this article are not exhaustive; an open unbiased mind is needed in your investment appraisal