Tech.knowledge.me - February 2010

Information Technology Implementation & Strategy

It should still be on the top of the list during tough economic times

by Michael Beardslee

    As we embark on a new year, many Nevadan businesses continue to be affected by the economic slump and are scrutinizing their business practices. Many business owners are taking heed and still extending a great amount of caution when considering new information technologies. In doing this, they may be jeopardizing customer relationship management, affecting processes and creating as lack of efficiency in the workplace.

    While the economy still struggles, companies cannot ignore the fact that they should invest their money in areas that improve sales, better service customers and help increase efficiency. Savvy businesses know you can’t save your way out of a recession. Despite what’s going on, businesses that continue to invest in information technology know it will ultimately save money, keep current customers in a good state, and increase overall productivity.  

    While we hope to edge our way out of this downturn sooner than later, many organizations continue to bulk up the work load on limited staff, who are tackling multiple tasks as hiring freezes remain. However, there are programs available that allow businesses to bring on a technical consultant on a temporary basis and decide down the road whether to make the person a full-time employee. Such programs are smart, cost-effective ways to ensure quality job performance, without worrying about the expense of a full-time staff member.

    Any decrease in productivity caused by understaffed businesses and overworked employees can be damaging to a business. Consultants are there to overcome these obstacles by tackling any technical job in a professional, quality manner. They can handle various aspects of integration and back-office operations, and also assist in mandatory technology-related areas, such as regulatory compliance, security needs and any necessary software upgrades.

    Businesses should look at solid IT infrastructure as a “must-have,” especially during these trying times. The correct IT systems can raise the level of an organization’s understanding of its customers, make more relevant data available to its sales force and help marketing develop more targeted and effective campaigns. Companies that stay up-to-date with IT improvements and invest in IT solutions that help them better serve their customers will be at a competitive advantage when the economy turns around.

    An investment in your future is key to any success. Therefore, wise business owners don’t neglect performance and improvement, even if it means budgeting funds for information technology services.  By making a smart investment now, these companies may save money and position themselves to thrive when the economy recovers. Studies show that companies who encounter success following a recession must be proactive even during an economic lull. History has shown that businesses that invest in new technology during a slow economy recover faster than those that postpone the processes.

    It’s easy to temporarily improve profits in the short term by cutting costs and reducing IT services. This might actually help you weather the economic storm, but you risk losing your customer’s loyalty in the long term. You will need to have the fortitude and the belief that winning the customer service battle now will pay off later.  This approach is founded on strong economic principles. It’s common knowledge that the cost of losing your customers and the cost of acquiring new ones greatly outweigh the costs of keeping existing clients happy and loyal. The long-term return on investment leans strongly in favor of a customer-service strategy during a recession.

     As the economy continues to falter, keep your computer consulting/IT services at the forefront of your mind. Be the business where customers receive prompt service. Don’t skimp on employee productivity and customer service enhancement tools. Let your business be known for urgency, responsiveness and quality. This is your chance to really stand apart from the crowd.

Michael Beardslee
Michael Beardslee is president of IT Strategies International Corp.