Technology plays a role in almost every company. But getting the most out of the productivity gains it can provide involves more than just firing up a desktop computer.
Frank Ballatore recently co-authored “The Tech Multiplier,” a book designed to help businesses better leverage technology to increase profits.
In an interview with the Business Journal, Ballatore, president of The New England Computer Group Inc. in Danbury, discussed his key technology recommendations for businesses and the importance of remaining up to date.
Business Journal: What are the key ways a business can increase its profits by investing in new technology?
Ballatore: “New technology often provides more efficient and better ways of performing tasks. For example, a database application can allow a business to record and access data much faster than a spreadsheet or manual methods.
“Businesses often underestimate the productivity gains that can be achieved by installing new hardware to replace older, slower machines. In addition to the speed improvement, employee morale can be positively affected when they are given a new PC to work on.
“Additionally, through the use of laptops and other mobile devices with remote access capability to the corporate network, sales professionals and other employees can get more work done, more efficiently, and on a timelier basis.
“Lastly, the move to cloud computing for some businesses can reduce maintenance costs and capital expenditures. Cloud computing solutions can be a more cost effective way to provide a computing platform for users.”
What new platforms should businesses consider using right now?
“There are two cloud solutions that we recommend for virtually all small businesses: hosted email and backup (disaster) recovery. When you take into account all of the costs involved in hosting email in-house, along with the reliability of hosted solutions, it”™s a very easy decision to make. Not only does hosted email provide a cost benefit, but it”™s available anytime, anywhere, from just about any computing device.
“Up until the past three or four years, true backup and disaster recovery solutions were cost-prohibitive for most small businesses. With the advancements made in backup software and the advent of low-cost secure cloud storage, true backup and disaster recovery solutions are in reach of every business. With the repeated power and Internet outages we”™ve seen in the Northeast in the past two years, this has become an important component of many businesses”™ technology strategies.”
What are the risks in investing in new technology?
“There are very few risks of investing in new technology. One of the risks is investing too early in new technology and being ahead of the curve. Typically, new technology needs a couple of cycles for bugs and glitches to be resolved. We recommend to our clients that they hold off on new technology investments until the solution is proven, which is usually three to six months after release.
“Another risk is investing in new technology simply for the sake of having the ”˜latest and greatest.”™ While it”™s true that businesses today must keep pace with technology to run their businesses more efficiently, it has to be the right technology. The business requirements and needs must drive new technology implementation, not vice versa. The risk of not investing in new technology is falling behind more nimble and agile competitors, and losing or not attracting more demanding, educated customers.”
How can businesses avoid those risks?
“By hiring an experienced, educated IT support consultant and business adviser. That”™s not two people, it”™s one. Many IT consultants today are well versed in technology solutions, but it takes a consultant with an understanding of your business to best advise you and your business on the right technology path to take. With the importance of technology in any business today, you should consider your IT consultant an extension of your management team, on a par with your accountant and your attorney.”
How should businesses determine when to upgrade hardware and systems?
“Many years ago the mindset was to use computers until they died. ”˜If it ain”™t broke, don”™t fix it.”™ Most computers and technology equipment are actually very robust and reliable. I still have a working IBM PC circa 1982. That can”™t be the mindset today. As I said earlier, business requirements and needs must drive the implementation of new technology. A technology plan of regularly””and appropriately””investing in new technology should be determined and followed. Not just for the sake of getting new equipment, but for the benefits of increased productivity and reducing maintenance costs.”
