It's no secret that today's business environment creates
both opportunities and challenges. On the one hand, powerful
technology, including the internet, provides access to global
markets and increases your potential for bottom-line gains. On the
other hand, managing the technology and taking advantage of the
opportunities it provides can prove daunting--particularly for
small-business owners who lack an extensive budget and a dedicated
IT department.
Make no mistake: Achieving success in this technology-dominant
era is far more complicated than putting a personal computer and a
printer on a desk and reaping the rewards. Increasingly,
entrepreneurs must understand how to take advantage of an IT
infrastructure, including a robust network, to compete more
effectively. Ultimately, it's as much about vision--and
developing a viable strategy--as it is about actual computing.
Navigating this business environment requires a solid business
plan and an understanding of your company's primary objectives.
The technology needs of a metal fabrication company, for instance,
are far different from those of a graphic design firm--although
both require PCs and can benefit from networks to manage data. The
former might require systems that store customer information and
manage a parts database, while the latter might need software that
lets designers collaborate and share files with clients.
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Too often, companies jump from one system or application to
another but never realize the full benefit of their technology.
Without a defined strategy, they make poor buying decisions, adopt
ineffective tools, and often experience a high level of
frustration. Businesses that excel typically establish technology
strategies that help them gain a competitive advantage through cost
savings, process improvements, faster time to market, and improved
quality and service levels. These firms often exceed the
expectations of customers, business partners and employees.
Evolving from a reactive approach to proactive one doesn't
just happen. When developing a sound tech strategy, it's
important to ask the right questions:
- Can my business achieve an immediate gain from the
technology?
- What benefits are possible and how long will it take us to
achieve success?
- What resources are required to implement and manage the
technology?
- Does the hardware or application support a foundation for
future growth?
Not surprisingly, adopting the right systems can maximize your
results and simplify future technology deployments. For example, a
robust internet protocol (IP) network makes it easier to implement
new technologies, such as VoIP. With a solid foundation in place, a
company can utilize VoIP to help trim calling costs and provide
sophisticated phone-based capabilities such as unified messaging,
which allows employees to receive e-mail, voice mail and faxes in a
single inbox. And the platform enables web-based document sharing,
collaboration and the use of video over a network. In addition, a
well-designed IP infrastructure streamlines security while
improving protection.
In a data-intensive world, mapping out the right combination of
tools is essential. Yet it's also paramount to ensure that
systems live up to their full potential. The fallout from bad
technology and failed installations haunts more than a few
businesses. In many cases, transforming the vision into reality
requires outside expertise--particularly at companies without IT
experts. Working with analysts, consultants, value-added resellers,
service providers, technology partners and even a knowledgeable
friend or relative can pay huge dividends.
Finally, it's wise to monitor the value that a system or
application provides and understand its benefits. As many companies
have learned--sometimes painfully--the initial cost of technology
is only the starting point. Without solid metrics and benchmarks,
it's difficult to know what benefits you're achieving and
whether the new systems are providing value.
In many cases, business owners are wise to use return on
investment (ROI) as a key indicator. Still, ROI doesn't tell
the entire story. It's difficult to measure the direct value of
an application that improves customer service or employee morale,
for example. And in a tough economic climate or adverse industry
conditions, the software might not boost sales but it could help
you retain customers or employees and cement loyalty. That, in
turn, could cut costs and position your company for future success.
But measuring these soft-dollar gains is possible through
the use of surveys and structured feedback.
If you can put all the pieces of the technology puzzle together,
you could transform your goals into clearly defined short-term and
long-term business needs. And having a well-thought-out tech plan
in place allows you to move away from the "faster is
better" approach and adopt a strategy that boosts performance
and profits through the maximum utilization of your resources.
These days, developing a solid technology plan isn't just a
good idea--it's the basis for competition.
Peter Alexander is Entrepreneur.com's "Tech
Trends" columnist and vice president of worldwide
commercial marketing at Cisco Systems Inc., the leading supplier of networking
equipment and network management for the internet.