Should we pay attention to all this high tech talk? Certainly it seems like everyone and their brother is talking about artificial intelligence, the internet of things, and even the use of technologies such as virtual reality and autonomous vehicles. And this is aside from mundane topics such as ERP systems. And, we need to function on a daily basis. We need to serve customers and deliver value to the bottom line. And, we prefer to only get distracted when necessary.
We have seen clients get carried away with the latest and greatest technology fads. Although it was an interesting personal education, it typically didn’t result in a return on investment. On the other hand, we have also seen clients ignoring technology that becomes vital to survival in their industry. After all, it is easy to do. When Sears used to be the Amazon of the age, no one thought they would be going out of business.
So, as usual, the answer is “it depends”. You must pay attention, learn about and invest in technology so that you can make a good decision on which to pursue and which to ignore for your go-forward business strategy. If it were easy, we would all be successful for 100 years running. There are VERY few companies in this position. Do you have a position or a person who is dedicated or allocates part of his/her responsibilities to this role? If you don’t call it out, it will fall by the wayside. This should be similar in concept to an R&D/new product focus. Why should we focus only on new products and not new technologies?
Food For Thought
No two clients are alike. Some ask us this question and it is an obvious,: YES, you must invest to stay relevant and increase business value. For others, it is an emphatic, NO. Why waste resources on additional technology when we haven’t implemented or used the available systems capabilities that will move the business forward? As it seems to go in business, it is usually the best executives and CIOs who are on top of their technology road map who ask these questions. The rest won’t even invest enough to find out where they should prioritize limited funds so they don’t become the next Sears!
At a minimum, once you get to a certain size or complexity, the minimum you should do is upgrade your ERP system so that you have a modern technological backbone and can scale up quickly as needed. With that said, it is rarely enough if your goal is profitable growth.
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