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Technology investment comes with terms and conditions attached and the biggest one is cost. Jan Kuhn, Business Services Executive, INOVO, tells Intelligent CIO why organisations are struggling when it comes to technology investments and how they can strike a perfect balance.
When it comes to technology investment, organisations are balancing on a tightrope between cost and sustainable success. While technology, according to McKinsey’s research, has proven its worth, helping organisations bridge the business-technology divide and delivering business value, there is still some understandable business reluctance to make a comprehensive move to new technologies. While technology delivers immediacy and value, companies are struggling to find a balance between pricing and optimisation.
“The problem is that people are looking at the bottom line so much that they’re forgetting to look at the long-term value that comes with technology investment,” said Jan Kuhn, Business Services Executive, INOVO, “They’re missing the other elements that get forgotten when technology is side lined, such as customer experience, efficiency and productivity. And these are increasingly critical to sustainable business success. Poor customer service and inefficient processes invariably have a negative impact on reputation and bottom line.”
It makes sense to put technology investment, especially if it’s weighty and extensive, on hold during tough economic times. There are other considerations that the organisation has to deal with and all are essential to its growth and sustainability. However, it’s important to consider how expensive old methodologies, systems and approaches will become over the long term and to assess what return on investment (ROI) lies in looking at a suitable technology investment today. And the keyword here is ‘suitable’.
“There are numerous solutions available to the business that wants to cut corners and save money in the short-term,” he said. “They can start small with immature solutions or they can use open-source solutions that are cost-effective and capable or they can simply plug holes with quick fixes. These are common steps taken, but they do introduce their own complexities, many that may end up costing the business even more money.”
