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Four Crucial Questions to Consider Before Sinking Money into New Technologies

By Umme Sutarwala - October 07, 2022 4 Mins Read

It is becoming evident that the recent economic highs experienced by enterprises are coming to an end. How far they will sink and for how long is less certain. Savvy company executives are aware that technology is the only thing that will enable them to survive this transformation. The future will see further growth in technology spending, but the major forces behind these investments will change, and pragmatism will become the guiding principle.

Today’s business owners depend heavily on technology for day-to-day operations. In fact, according to a Brother poll recently released, new technology will provide a greater Return on Investment (ROI) than new hires for business owners with less than 100 personnel in their employ.

Whatever the economy’s future holds, one thing is certain: key technologies will stay recession-proof because they help firms save costs, eliminate risk, and maintain their resilience. However, technology will face greater scrutiny and a greater need to demonstrate its worth.

Here are some crucial questions that enterprises should take into consideration before investing in new technology.

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What do businesses want to achieve?

Technology serves as a tool, not as a goal in and of itself. Companies should ensure they are very clear about their objectives. Do they primarily want to free up their employees to work on other projects? Providing the ease of online scheduling or payment in response to client demand? increasing online sales? Organizations must be clear about their objectives to make technology work for them.

Have companies paid attention to their customers?

Most people find technology to be highly exceptional, showy, and exciting. It’s simple to become deceived by the sleek design and practicality of modern technology.

Any enhancement a firm makes to its current menu of client options should be based on need. What do customers want to see or be able to accomplish, specifically? Consider the technologies required to solve opportunities and weaknesses after working with a team of people to examine them.

Technology is expensive, especially when companies initially implement it in their operations. They should ensure they are acquiring something that customers need or desire before investing this money.

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Organizations should also think about whether the investment will be profitable in order to reduce financial risks. How widely will this new technology be used? How did they find out? Before making a major investment in technology integration, businesses should always consider doing internal product testing or using a software beta version.

Do the advantages exceed the time required to train staff and adjust processes?

Most small and medium-sized firms cannot afford to purchase specialized software. Therefore, they may need to alter their procedures to accommodate the new system. Though it’s not always good or negative, firms should consider the implications for their organization. The requirement to upskill their workforce comes with change. There will be some amount of training needed for even simple technology. It will be a monetary waste if personnel are unable or unwilling to use the technology.

What proportion of internal resources will be needed for its deployment?

However, if they are so disruptive that internal specialists are required in order to implement and manage them, they might have the reverse impact. Some solutions may be game-changers in terms of helping the organization function leaner and more effectively. Companies should always inquire about a vendor’s capability to offer continuous maintenance and support.

More than 75% of tech executives surveyed by the CNBC Technology Executive Council predicted that their company would increase its technology investment in 2022; none predicted a decrease. According to the tech leaders polled, they have learned from previous downturns that technology is a business driver rather than a cost center.

Whatever the economy’s future holds, one thing is certain: key technologies will stay recession-proof because they help firms save costs, eliminate risk, and maintain their resilience. However, technology will face greater scrutiny and a greater need to demonstrate its worth.

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AUTHOR

Umme Sutarwala

Umme Sutarwala is a Global News Correspondent with OnDot Media. She is a media graduate with 2+ years of experience in content creation and management. Previously, she has worked with MNCs in the E-commerce and Finance domain

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