As a strategic advisor in the high-tech space, more often than not, at some point the conversation turns to technology and the use of technology to “solve” some particular set of short-comings or business process issues.
To these technology questions, I have a set of hard and fast rules that dictate the purchase and deployment of technology within a business segment or organization:
- When it comes to corporate IT strategy and IT platforms, be sure you are aligned with corporate strategy before you go down an evaluation path for a particular business segment level application. The corporate IT groups are the “keeper of the keys” in this area. They should have a road map that will either confirm your place or suggest an alternate path for you to follow. Either way, it will save you time and money if you gain alignment early on in the process.
- In that same area, if you are on the corporate IT strategy side, be sure that only IT projects that align with the corporate strategy are allowed to pass the first gate or check point on the path to approval and funding. This may sound simplistic, but, look around your organization. You will see may “pet” IT projects that are one-offs to solve a specific process issue and have nothing to do with the larger strategic IT agenda. Sure, they may have been cheap, but the maintenance, dependency and legacy baggage that come along with them suck vital IT resources in the long term.
- Any IT investment that is eventually made must lead to, enhance, and support the corporate objectives. Said another and simpler way, will you make more profit by making this IT investment. If the answer is not a clear and loud “yes”. Look for an alternative to the IT investment.
- Be determined to build one technology platform for your ENTIRE organization. Sure, it is easier said than done. Especially if you are growing by acquisition or on a limited IT budget. That said, in the case of acquisitions; always look to rationalize the IT platforms early in the process. It will pay off in the longer term in big, big, ways like ease of use, information analysis, budgeting, and the financial period end roll ups. If you are “boot-strapping” your IT platforms, discourage the “buy it now” mentality for the more disciplined road-map approach. Again, this will save time and money in the longer term.
- Whichever platform you choose, be sure to get the reporting module that goes along with it. So often I see companies’ cheap out in the reporting area when they purchase IT platforms. Sure, the users are adept at manipulating the software, but if the business folks can’t access the data to drive the business forward, it’s an orphaned platform. Business knowledge is business power…enough said.
- Lastly, don’t forget social media. Yeah, it’s for businesses too. I continue to learn this lesson the hard-way.
Most organizations waste time, money and miss profit opportunity by letting their IT platforms organically grow and develop. Having a well aligned IT plan with your corporate strategy pays dividends in the short and long term.