Leading organizations are rarely satisfied with the status quo and are continuously looking for ways to improve and increase their competitive advantage. During an economic downturn these companies, some of them your competitors, will be looking to sharpen their business processes and adopt technology based solutions such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) and Business Intelligence (BI), solutions to expand their competitive position.
Organizations like these will be more effective and agile during the downturn – and in better shape to take a larger slice of the market when the economy improves.
Below are 10 benefits of implementing technology based solutions
- Keep your best people busy. Although there is never a perfect time to implement technology based solutions, a downturn is as good a time as any. Often your best resources will have new found capacity to drive implementations, which isn’t always the case when the economy is booming and companies are busting at the seams.
- Scale for growth and economic recovery. Forward thinking companies are implementing technology now to better position themselves for business growth and scalability when business picks back up
- Improve efficiency. Technology Solutions provide companies with a unique opportunity to automate manual business processes and eliminate non-value-add activities.
- Increase revenues. Many companies are facing flat or declining sales during this economic downturn. Technology solutions can help enable increased services levels, increased client retention rates and increased overall wallet share.
- Spend less – get more. Overall, the cost of software licenses has gone down over the past 5 years. This slows you to get more licenses for your investment dollar.
- Cloud computing is changing the game. Cloud computing has opened up technology to many companies that may have previously viewed the software as too expensive and labor intensive to install and manage. While some claim that the cloud may be overhyped, the benefits are undeniable. Accessing software via a cloud platform can lower the total cost of ownership, which can be critical for midsize companies with limited resources.
- Reduce IT Support Costs. Traditionally, companies interested in technology were forced to acquire for their software purchase via a perpetual model. Software has evolved to include more options, such as Software as a Service (SaaS) or subscription models. These alternatives require a lower initial investment than traditional perpetual licensing solutions and should be considered during the evaluation process.
- Increased productivity. Many companies are laying off large numbers of contractors and employees. Adopting technology based solutions enables companies to get more work done with less people, allowing them to maintain payroll costs both now and when the economy recovers.
- Prepare for mergers and acquisitions. Given the high levels of consolidation that often take place during economic slowdowns, many companies find that technology software will help them standardize their business processes and prepare for either acquiring other companies or being acquired.
- Focus on benefits realization. Technology solutions are not always required to demonstrate measurable results when economic times are good but are in lean times are required more than ever to deliver results. Of course, we argue that this should be true in both good times and bad.