How much of your technology costs are wasted?
Technology is an ever-changing item within a business. It’s unfortunately a common occurrence for something to be purchased and never used, or not used effectively. The key to keeping a technology budget in check is to keep those wastes to a minimum.
One of the biggest wastes occurs when a business purchases expensive services or products that they do not need. In short they buy a BMW when a Chevy would best suit the needs.
It’s not uncommon that an owner or manager to be sold on a technology item, that requires them to change their business process and doing so, actually costs more in the long run. Whenever technology is considered, it should be understood how it can be incorporated into the existing business practices.
Telecom and Internet services are two examples where waste may occur. It could be the more expensive phone, one that has buttons and features that are never used. Or adding additional Internet bandwidth to compensate for a poorly designed network.
Since technology is always changing, another thing to remember is looking at a return on investment over a five or seven year period is a mistake. The best term to look at would be for one and no more than three years. The technology needs for the business will probably change to a degree that what’s purchased today may not be in use in three years.
In the data network, it’s not uncommon to be sold on a network switch that can provide Gigabit bandwidth and Power over Ethernet, whether it’s currently needed or not. The thought is that it may be needed in the future. Unless it’s going to be needed within the one to three year time frame, the added cost of these devices usually are wasted money.
Even with traditional telephony systems there may be waste by over provisioning circuits to the Public Switch Network. While redundancy may be required, having twice as many ports because there may be a need once or twice a year, could very well be money best spent elsewhere.
Unless you keep a sharp eye on technology expenses, those costs could soon run a profitable business, out of business.
© 2007 Steven G. Atkinson – All Rights Reserved
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Steven G. Atkinson is a technology consultant based on Maryland’s Eastern Shore. He is the author of Technology Tips for Small Business
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