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Information Technology: Business Investment or Expense?
By Dale Walls
As we bring this year to a close, I look back and see another year gone by where we’ve been faced with new technologies, new ways of doing business and advancements that have brought, in some instances, new ways in how we live our lives. One thing that hasn’t changed for me is the diversity of business owners and decision makers in their level of adoption of Information Technology (IT) into their organization. In some instances, the difference is the level dependency the organization has on IT. In other cases, adoption of IT is driven by a view of IT use as either an Investment or as an Expense.
Granted, there are still a handful of organizations that can get away with little to no interaction with IT. Most organizations today however cannot function without it. The first thing to recognize for your business is what technology you have and why you use it. Do you have a simple fax machine and use computers for only word processing; or is your business operating on a server-based infrastructure where everything from your line-of-business (LOB) application to your financials are electronic? Could you just not function in your office today with our e-mail or Internet connectivity? This question will help you determine your IT dependency. IT dependency is derived by the identification of what technologies that you use day to day are critical and which are non-critical.
Next, you need to review your IT components to establish which technologies make you money, and which cost you money. Now I’m sure you’re in tune with how to identify with what makes your business money. During this review however, you may need to think more in the way of indirect benefits, or cost savings. For example, an auto-attendant phone system may provide your receptionist with more time to get other work done aside from directing regular calls, or it may save you the cost of having to have a receptionist all together. Mobile email may save time and money in respects to efficiency when away from the desk.
The technologies that cost you money are those that you’ve bought and don’t use or just are not a good fit in which no value is gained. This is a lesson to ensure that due diligence and planning are in effect for new technologies that involve workflow changes. Getting buy-in and training on new technologies for you staff is key to making certain that your IT investments pay off.
Now given your quick brainstorm about your use of IT in your day to day operation, let’s put some things into perspective. First, you need to make sure that your technology is either improving the way you do business or reducing your cost of doing business. Anything less and you’re not getting the proper return on investment (ROI). Secondly, remember that you don’t know what you don’t know. Don’t assume that there’s not a better way to do things. You’d be surprised what has already been thought of in the IT industry to help your business. If you’ve ever had the though “It sure would be better if…” then a solution may exist to answer your needs. If not, it’s not impossible to develop custom solutions to fit your needs.
Today’s IT is not to be taken lightly. Understand that if your business has any dependency on IT then it actually is an investment and be sure to treat it as such. Inefficiency can cost you more than time; it can be the very difference of survival against your competition. Planning, service, and care of your IT systems are actually worth something. Don’t forget that if you’re having issues with your system due to lack of proper management or implementation, or if you’re faced with regular problems; you’re not only paying for the cost of someone to fix it, the downtime of the system is losing you productive employee time. Don’t just pay for your IT, invest in it.
Dale Walls is President of Corsica Technologies, a Microsoft Gold Certified Partner & Small Business providing complete IT Solutions for businesses, government, and home computing in Maryland, DC, and Virginia. Feel free to contact Dale at 443.262.9290, or by email at dale@corsicatech.com.
