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BUYING
TECHNOLOGY
Consider needs first
to purchase software,
systems wisely
Every growing business needs systems,
software and technology that can scale
up along with the growing company.
When considering technology purchases,
the best question to ask is: what is
the business problem I’m trying to solve?
When you automate something you
can’t automate against human nature.
So, first follow the rules you already have
before you make new rules. Ask, why
aren’t people doing it now?
The point is not to be a technophobe, but
to carefully consider the cost and benefit
of any particular technology solution, and
to further consider the reality that many
an expensive software program or gadget
sits unused at companies because it’s
human nature to resist change.
You have to watch out for bright, shiny
objects and cool blinking lights, because
it costs you something, one local information
technology consultant likes to
say. So you better get something from it.
And you have to know upfront in concrete
business terms what you’ll get
from it.
The No. 1 thing is that every dollar that’s
spent matters. Any time you’re planning
technology solutions, step back and say,
what’s the problem I’m trying to solve and
what’s the cost? If it costs a dollar it better
be getting more than a dollar back.
CASE
STUDY
When Maggy Kottman purchased
Aircorps Mechanical
in 2003, she brought a
general business background
to the mechanical contractor that
specializes in HVAC installations, or heating,
venting and air conditioning for commercial
buildings.
She immediately attacked what she calls
the low-hanging fruit in any business: she
purchased financial software to get the
reports she needed, and compared the
costs of each with her needs. She scrutinized
the expense of office supplies, right
down to toilet paper that was costing her
$12 for a case of 10 rolls. “I said, that’s just
wrong,” Kottman says, and she switched
to a warehouse-style club for such purchases.
By May 2008, union wages increased 4
1/2 percent, and then gas prices soared as
high as $4 a gallon. “We thought, we had
to do something,” Kottman says, so she
began investigating global positioning
systems and gas cards for her employees,
who travel around the Twin Cities to service
and install equipment.
9 tips…
…for upgrading technology.
1
Finding the time to be ‘non-productive,’
to focus on a software installation or
upgrade for your own firm, can be difficult
for a growing company.
2
But the results can be increased efficiency,
and especially more time for employees
to focus on driving revenue.
3
The earlier you start the process, the
better, but if you didn’t install systems
when you started your firm take the time to
do so now.
4
Every project should start with research,
so the company can understand its own
objectives, experts say.
5
Next, interview a number of potential
vendors, with the goal being to find a
partner rather than a one-time salesperson.
6
Make sure the product purchased aligns
with the firm’s other existing technology
to ease integration.
7
Well before the upgrade, seek feedback
and buy-in from leaders within the
company.
8
Many technology upgrades fall apart
because business owners either didn’t get
other employees on board or didn’t seek
feedback to see how the new equipment
would interact with systems already in place,
experts say.
9
Once technology is purchased, train
employees comprehensively so they know
how to use it.
TO-DO LIST
Never automate a
mess. Make sure
your business process
works well before turning
to technology; a software
system can’t fix a process
that’s broken.
The first place to purchase
is likely financial
software that gives you the
reports you need. It can help
to hire an accountant to set
up your system and train you
or your chief financial officer
how to get the most out of it.
Another fruitful area
to consider is customer
relationship management
software, so you
can maximize information
and interaction with customers.
1 2 3 4
With any technology
purchase, always
specify the problem
you’re trying to solve or
the goal you’re trying to
reach, and compare the
cost of the solutions
you’re considering.
UPSIZE | 30 | ONLINE
NOV08