Mapping Technology To Your Business Strategy
Mapping Technology to Your Business Strategy by Scott Hammer
Creating a business strategy is something that most entrepreneurs do on a regular basis. It is one of the first topics in your SBA classes and Business 101. Why is it then that so many intelligent business owners forget to consider how technology integrates and applies to those strategies?
Understanding the expectations, and limitations, of technology applied to your goals helps to craft a strong plan for the future. It is a fact that if you are ignoring technology as part of your business strategy, you are falling behind in the marketplace. Technology implementations encompass much more than your five page website. It entails online marketing, reputation and loyalty, customer management, finances, communications, customer service, and tracking of your business operations.
Technology is something that was created to help businesses improve and become more agile to changing conditions. Unfortunately, incorrect application of technology to your specific business strategy can actually cause more harm than good. Implementing the latest fad technology on the promise of future return has come back to bite many owners and managers in their bottom line.
When developing your business strategy, consider the following:
- What technologies are available which help achieve these goals?Many technologies hype themselves as the best method to reach your customers; but do they really achieve those claims? Just as you would do due diligence on a new business acquisition, one should also devote the same time and effort when applying a technology to your business strategy. If you aren’t sure how to distinguish the various vendors or their licenses, hire an expert to do it for you. The investment pays off on the implementation side.
- How will these technologies affect my operations? Each time a new technology is introduced to the business, there is some impact to the operations; even if a short down time to upload new web pages. These range from training your employees to properly use the new system to having to add resources to support the new technology. Make sure your technology package describes all the costs that will be part of the solution. You would be surprised how something small, like extra air conditioning and electricity not accounted for in the costs, quickly deteriorates your ROI.
- How expandable and scalable are my technologies? Many companies have fallen into the trap of a vendor lock. This is when you purchase a proprietary technology that doesn’t integrate well, or at all, with other technologies that may be used or needed. Creating a piecemeal technology implementation plan that doesn’t consider the greater corporate strategy will often create this type of a situation. When purchasing technology, ensure that the systems will work with other vendor systems and technologies. If you find a proprietary technology that seems to be the only solution, understand your contingency plan if the vendor decides to greatly increase license cost or upgrades.
- Do we really need this technology? Despite what many IT consultants will tell you, there really IS a time when technology isn’t the answer to the problem. Part of your due diligence phase should include a comparison of costs and impacts if the technology isn’t implemented. Often people are surprised how much cheaper and efficient it can be to complete some workflows the old fashioned way.
The importance of technology in the enterprise is well documented and easily found but the need to evaluate and map to strategy is often ignored. By creating a strategy that doesn’t properly evaluate the full technological needs to meet goals, the enterprise opens itself to lack of agility and efficiency. It is true that not every strategy has a technological need but it is just as true that you will miss ones that can if you don’t consider them as part of your cycle. By considering the potentials as part of your overall strategy sessions, you create the opportunity to improve them even further.
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