Cutting operating costs and underinvesting in IT is one of the oldest tricks in the book when it comes to boosting profits. But cost-cutting is a fine art – reduce spend in the wrong place, and your business may struggle to operate at all.
IT is often regarded as fair game when trying to make savings, particularly if your business is not technology-focused. But having a single process reliant on technology – like the company accounts – means your entire business is completely dependent on good IT systems.
Far too many organisations regard IT as just another cost code, an unwanted expense that is as popular as corporation tax and National Insurance bills.
The modern online economy is changing things
When implemented correctly modern IT systems have the potential to revolutionise business operations. From increasing productivity to improving the availability of important business data, technologies like the Cloud offer significant competitive advantages to those organisations that integrate Cloud into their IT.
Little surprise then that super successful businesses in every industry invest heavily in their IT systems. These organisations realised long ago that by embracing technology and spending money to buy the best that they could afford, they were better placed to take advantage of new opportunities and efficiencies.
These IT-friendly organisations are still subject to the same demands for efficiencies and cost-savings as their competitors, but by using computer services to their full capacity often allows them to create those efficiencies through better allocation of resources, or general productivity gains across the board.
Good enough, isn’t
These forward-thinking businesses quickly come to dominate their respective verticals, quickly crushing weaker competitors who underinvest in IT. Taking a “good enough” approach is the equivalent of setting out to build a completely average company; annual profits will be mediocre (at best), as will the products and services you provide to customers.
And when offered the choice between an average company, and one that is equipped and able to meet my needs more efficiently, who do you think I am most likely to choose? Good enough is the long, slow road to oblivion.
Your business is like a tree – keep providing it with sunlight, water and mineral-rich earth, and it will grow steadily. But if you only give it “just enough”, the leaves dry out and fall off, and the tree shrivels and dies. Because your estimate of “just enough”, is insufficient for the needs of a healthy growing tree.
And so it is with your company IT. What is “just enough” for your operations today will undoubtedly be insufficient next year – particularly if your rivals begin investing properly in their IT systems. A larger, more successful business needs more IT investment to support growth and to provide an ongoing competitive advantage.
With any investment, there should be a return, and with the use of IT outsourcing and Cloud services, the returns will easily repay the outlay. So stop being so stingy, because ultimately it will be you who suffers.
If you’re happy with being another “just enough” business, please don’t get in contact. If, however, you’d like to own and run a super successful business and would like to find out about investing responsibly in your IT systems - fill in the form below.
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