A funny thing happens when some people have success. They quit innovating and get comfortable with the status quo. This same phenomenon happens to businesses all the time especially when it comes to technology. This leads to reduced productivity and profits which no business wants.
So how do you know if your technology has entered maintenance mode? Below are three signs to watch for.
Nothing has changed
The same applications that were in use at $5M in sales are used at $25M. (and we wonder why sales process is not scaling) The same VPN technology is used for 200 people to gain remote access just as it was when it was 50 people. (This kills productivity BTW).
The rate of technology change is faster than any other area of a business. It also can provide the most leverage and ROI versus other business areas. It is important that you annually evaluate the technology, applications, and workflows in your business. Otherwise nothing changes and you simply “add more licenses”. Not a recipe for success.
Everything is Reactive
The reactive mindset is to wait until something is broken to address it. The COVAID pandemic clearly highlighted the businesses that were in this reactive, maintenance mode. They scrambled to implement new technology to provide remote access and update applications that should have long ago been moved to the cloud.
Technology Spend is Stagnant
Most businesses budget for maintenance mode IT, and only 20% of the remaining budget is available for transformation. This is a shame because the Return on Investment (ROI) with technology spend is 10x higher than most any other investment. The investments made is technology impact ALL of your workforces and have huge leverage.
A properly funded technology budget will be based on a percentage of revenue of the company, not a fixed number. The word BUDGET does not mean you have to spend it, but it does mean you need to properly fund technology. Most businesses need to start with 3% of revenue and then tune this up or down based on the specific industry they are in.