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Thursday, 16 June 2011 15:22

How Much Should I Invest In Business Technology

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Today most business owners realize that they must embrace technology in the work place to remain competitive.  So the question is no longer whether to automate the business, but rather, what is the correct balance of manual and automated processes.

Like investments of other types,  the concept of diminishing returns applies here as well.  There is an optimal point at which additional investment yields additional complexity, maintenance, cost, etc, without a corresponding positive impact to the business's operations.
 One rule of thumb to employ is to think of a technology investment as a lever.  Like a well placed lever, the appropriate technology investment will enable a company to lift a disproportionately heavy load without increasing human capital.  As in the tale of David and Goliath, David was able to slay the giant with innovation.

So how does this philosophy translate into action?

Invest in software with the right mix of power and simplicity

All companies seek applications that are going to empower them through the delivery of powerful features and processes.  However they do not want to be burdened with long implementations and a slow learning curve.  Find applications that provide the right mix of features useful to your business as well as a high ease of use.  Getbusiness technology a demo of the application and ask yourself how intuitive the application looks to use.  If it is going to require endless hours of training to become facile with the application, then it is just not designed with the user in mind.

Integrate software to reduce data input time and save training time spent learning multiple products. 

Instead of finding a different software application for every business process - -accounting, customer-relations management, etc. – look for a single, integrated solution to handle your business processes. With this approach, staff will be more productive; they will learn one application faster than several applications; and they will save time by entering data into just one system.

Automate business processes and scheduling

Use technology to handle routine business processes (such as materials and production planning for manufacturers) so you can manage higher administrative volume without increasing staffing levels. You can also use scheduling tools to better administer staff utilization.

Expand market influence

Use built-in analytics that provide timely, accurate, and actionable information to help you identify needs (such as additional capital) and opportunities (such as new markets). Having this 

In-source

Outsourcing is often thought of as a way to save money. In reality, you can save money and maintain greater control if you manage tasks in-house through technology rather than outsourcing. For instance, instead of outsourcing payroll, enable your staff to handle it easily through the appropriate application.

For more in-depth guide on what every CEO and CFO should ask during it's journey to becoming profitable  Download this free guide!

Last modified on Friday, 08 July 2011 08:40
Accounting Micro Systems

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