The impact of the Covid-19 global crisis had a huge impact on businesses, with economic uncertainty and disruptions to operations prompting many organizations to cut back on non-essentials, including technology budgets.
Regardless, businesses appear to be moving forward positively into the future and are willing to invest in technology now, particularly as the way people work has undergone a dramatic transformation.
Investing in technology is vital to thriving in today’s competitive business world, as it allows organizations to expand, improve their productivity, and achieve success more easily.
However, it can be challenging to know which technologies will bring the best return on investment and where to allocate your budget to ensure you are making the best decision about investment.
Digital transformation
Digital transformation is a term for the process of using technology to create new or adapt existing business processes, culture, and customer experiences. There are many reasons to undergo a digital transformation but the most likely answer is to survive. In the wake of the Covid-19 pandemic, businesses that adapted quickly to supply chain issues or the shift to remote working were the ones that survived. Those who were slow to adapt to the changing forces, or had not yet begun to embrace digital transformation because of cost, found it challenging to maintain business continuity.
Digital transformation is not a new phenomenon; however, the pandemic accelerated the change and the adoption of digital tools and technologies was sped up several years in a matter of months. Digital transformation requires more than just the use of technology to increase efficiency and reduce costs, it requires a change in a business mindset. It requires an organization to take on new ways of thinking and behaving to leverage digital technology and embrace new ways of functioning across industries.
More and more companies are focussing on the need for new IT infrastructure, to keep up with changes in their sector or markets. One of the challenges to digital transformation is that companies have to be careful about what technology they invest in and make sure it meets their needs.
Technology investment benefits
Technology is an important part of any business. It helps to create scalability and agility which are vital to ensure the organization can withstand the frequent vagaries in market and customer demand. Technology empowers people and helps them work smarter.
There are many ways in which technology can be used in a business, but there are key areas where it has the most impact:
- Improving existing processes so employees are more productive, efficient, and engaged
- Reducing costs as older infrastructure stops being a financial drain to maintain and upgrade
- Increasing business reach and exposure, to enhance customer experience and increased revenue
- Promoting better connections with stakeholders and supply chains
- Becoming a leader not a follower in your market
Traditional technologies can put a drag on productivity and the cost of doing business. Maintaining older systems can take up time and make a huge dent in the budget. With more reliable and scalable technology, such as cloud computing, the costs are predictable and you can focus that return on investment elsewhere.
Choose where to budget for technology
Technology is the primary tool for organizations to accomplish their business goals. To make the right decision on which technologies are worth investing in, organizations need to consider their business goals and the current state of their technology infrastructure.
Several factors influence whether an organization will benefit from using a certain technology. Often the decision comes down to the capabilities it has to offer. The type of technology that is used has to be compatible with the size and complexity of an organization as well as deliver on business objectives.
You may need to shift investment away from physical office space and IT infrastructure and focus on enabling cloud and mobile devices, as well as security. Cloud computing is increasingly getting a higher percentage of budgets as businesses start to favor these services and shift away from on-premise hardware and servers. It is vital to recognise the importance of creating a clear and concise digital transformation roadmap that aligns with your business goals.
The digital transformation process is a monumental shift in the way businesses work and technology is the backbone of this change. Leveraging technology so your business can work smarter, not harder, will be one of the best investments you make.
To find out how your business can move forward into the modern workplace and unlock its full potential, speak to the Technology Solutions team. Invest in your future today.
