Have you gotten the latest iPad, tablet, or smartphone? Have you upgraded to the newest operating system yet? What technology do you use at your company? Technology is a very valuable tool when used properly and at the right time. On the flip side, however, when technology is not used at the right time it can be destructive for any company or organization. The key is making technology a smart investment.
Making Technology a Smart Investment
All new investments start and end with leadership. As leaders, you must invest wisely in technology so your company is successful and maintains stability. I would like to suggest three factors to consider when investing in technology so that you make technology a smart investment.
1. How does it effect productivity?
First and foremost, leaders must look at the productivity of a particular piece of technology. How much will the technology increase productivity? Will it eliminate the need for other resources? If the technology will increase the productivity of the group than it may be worth the investment. As part of productivity, sometimes it is important to invest in technology just to s
2. Is it costly to implement?
If the increase in productivity is significant, then you must look at the cost of implementation. Will the cost prohibit the implementation? Are there going to be recurring costs associated with the technology? Are there high upfront costs with limited to no maintenance costs in the future? How long will you have to use the technology to recover your return on investment?
Technology can be a very significant investment, so you must carefully review all associated costs. Adopting a new technology cannot be something done in haste because it could cost you for many years. You must be very careful when investing in technology because if you make a wrong choice, it could put your company out of business.
3. Is the implementation timely?
When determining the timeline for the implementation of a new technology, you must look at the market and where other companies are going. If many other companies are investing in a particular type of technology, you may need to invest in it just to stay on pace with the competition. At the same time, if you are the very first company to invest there is a great risk. If the technology becomes big you will be able to capitalize on the fresh new market, but if it does not go big you may end up spending a lot of money on a failed product.
Each of these factors has a major bearing on the success of a new technology within a company, organization, or business. If you don’t think about productivity, cost, and timeliness of the implementation you could make a major mistake. You could end up getting into a situation that leads to failure.
Interesting read! My CEO and I were talking about this very thing yesterday – investing in technology companies and furthermore how to know which tech company would be a good investment. After our chat, he then wrote a blog post about it, you can check it out here: http://tothepointwithbozic.com/cgi-sys/suspendedpage.cgi
Welcome Leeanne! Thank you for your comment. That was a very interesting post that you mentioned. As you pointed out, it is quite a challenge to know when and how much to invest, but with careful study and courage the right investment can be very beneficial. Thanks again for your comment!