INVEST TO INNOVATE
In the Save With IT feature, mention was made of the age-old aphorism, ‘spend money to save money.’ The idiom also encapsulates one of the latest IT investment trends whereby CIOs and CEOs, hungry to disrupt and innovate, are investing in digital transformation to reduce operating costs, transform their business model and remain competitive. Omar Aguilar, Deloitte’s global leader of strategic cost transformation, says:
“Digital risks, including concerns about disruption and cybersecurity threats, are spurring organizations to use cost reduction as a mechanism to fund technological transformation.”
So, besides cutting energy costs by pivoting away from operating on-site servers and infrastructure, how else can you invest in IT to give you a competitive edge?
INVEST IN THE CLOUD
Migrating your business data to the cloud is one of many options when digitally transforming your business. But what about the software that you need for seamless operation? Do you build your own in-house solutions or buy something out of the box? Many business leaders baulk at the notion of paying £30,000 upfront for a Software-as-a-Service (SaaS) platform, thinking it will be much more economical to have the in-house IT team develop a solution. These leaders couldn’t be more wrong. Here’s why:
- when you build a software solution you aren’t inventing the wheel but reinventing it – it’s probably been done before and even corporates with massive resources prefer to use a third-party vendor than make something from scratch
- initial SaaS costs might be high but in the long run, it’s a lot cheaper than paying the salaries of several developers over the years
- the solution you build this month might be outmoded the next – any software solution should be scalable and SaaS vendors have the experience and economies of scale to facilitate your software scalability
The long and the short is that a large initial investment in IT will result in a software solution that is flexible, cost-effective and with longevity. As London-based entrepreneur, Roman Taranov says:
“Don’t try to save money by solving problems with a “quick and easy” in-house fix. It’s rarely either. Invest in a first-rate technology stack early on, and let your team focus on their real priority: improving the value of your core product.”
INVEST IN YOUR EMPLOYEES
Investing in automation can save you a fortune on staffing costs. Automating tasks such as security backups, sending emails and invoices and posting on social media doesn’t mean cutting your employee count. It does mean freeing your team from mundane routines so they can put their expertise to good use. Automation will also save you money as you won’t need to pay for overtime to alleviate the load or foot the bill for hiring additional staff. There are also direct benefits for your team. Jeff Wald, the founder of an enterprise software platform company, told Forbes:
“If you consider that the conventional work week is 40 hours, the data reveals that automation will save employees 6 weeks of time per year, and a full 9 weeks of time for business leaders — all of it time that professionals can reinvest into career development and personal growth opportunities.”
Automation also enables you to use robotics and AI to get goods to consumers faster and without friction. Happy customers are returning customers.
INVEST IN CYBER HYGIENCE
At the forefront of using technology investment to save your business money is to implement improved security measures. Updating your firewalls and anti-virus and applying best-practice cyber hygiene will protect your precious data, including that of your company, your employees and your all-important clients. The harder you make it for a hacker to break into your network, the less likely you are to suffer a breach. With enhanced cybersecurity, you’ll be seen as a trusted partner by your clients and you won’t need to deal with the dilemmas associated with downtime or handle reputation management should things go awry.
YOUR RETURN ON INVESTMENT
The saying ‘invest in return on investment’ may sound a bit weird. Nevertheless, as any businessperson knows, a primary reason for investing in something is to make money or see an ROI. But tech ROI isn’t also immediately visible in monetary terms. For example, if you spend £250 per month on Zoom, how do you quantify the ROI? However, when you use technology to drive a particular ROI, the results are much more apparent. Imagine that you design and implement an app to increase sales. Comparing your revenue before using the app and after will provide a clear picture of its tech ROI. If the app cost £1,000 to build and you make 5 sales extra a day worth £20 each, in 10 days the tech has paid for itself and you’ll start to see ROI.
GUIDING YOUR INVESTMENT
I have been in the business of professional business IT management and support for more than 15 years. As a cloud, cybersecurity and risk mitigation specialist, I can advise you on and guide you with your IT investments, whether they be cloud migration and SaaS, automation or cyber hygiene. Give me a call today and let’s plan for your investment in IT and the future of your business.