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.
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.
Written
by Peter Alexander - 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.
