“Technology should be viewed as both a cost of doing business, and an opportunity to do more.” (TechVera)
No wonder organizations around the world are investing more than ever in their IT. In fact, worldwide IT spending is projected to reach $4 trillion USD by the end of this year. This shows a major shift in the way that decision-makers perceive the value of their IT investments.
From Launching to Managing Innovation
In the past, IT has been valued as an operational investment, not as a strategic or innovative investment. However, while projects like company-wide digital transformation are a part of the larger business strategy—managing them after launch is, inherently, part of your IT strategy. Now that we’re entering the post-digital future, the reality is that IT plays a larger role in your organization’s growth strategy than ever before.
This trend has undoubtedly brought new, and better, business to the managed services sector. In fact, 28% of SMBs have ditched their in-house IT efforts in hopes of achieving a higher ROI with managed services.
Unpack the Benefits
At a basic level, investing more in your IT strategy has a baseline ROI of achieving better efficiency. However, we need to start unpacking the true value of well-invested IT budget. Think about things like…
- The ability to reach more potential customers and develop a better business relationship with your consumer base;
- Providing better and more unique services to customers;
- Supporting better relationships with key partners;
- Using customer demand to better guide the business;
- Devoting processes and talent to core business instead of overhead;
- Rising above competitors to establish your business as the most progressive and forward-thinking in your industry.
Understand the Value of Time
Phil McKinney’s Forbes op-ed “The Real Reason to Invest in Technology” considers the concept of the perceived value of time in relation to technology investments. Until recently, organizations have failed to successfully weigh the benefits and risks of IT investments without solely considering financial ROI over other types of returns. Big tech firms like Google and Shopify have swung the pendulum with their employee-focused investment models, which have shown the time-value of IT spend on things like remote work setups.
Your organization should be considering more than just how your IT investments will impact your annual budget—consider instead how IT can contribute to your overall growth strategy and the satisfaction of your staff and clientele. Not sure where to start? We can help. Book your consultation with Grade A today!