It’s hard to hide from the pessimistic messages surrounding the world around economic uncertainty, but business and technology leaders still have work to do nonetheless. way to think.
It may seem counterintuitive to spend during times of economic uncertainty, but companies that make hasty decisions to tighten their purse strings and cut back on technology investments will be left behind. maybe.
Not investing during a recession will only starve your business. It’s either a “slower death” that only delays rather than avoids eventual downfall, or, at best, less cash and market share available, and seizes the opportunities that arise when it comes to the other side. will not be possible.
Investing now requires more courageous and strategic planning when profits are at their maximum and there is still plenty of money available from investors and banks. As other recessions have proven, investing now will set you apart from the competition. Competitors are likely looking to get a deal now and win the bulk of the loyal customers who have stuck with you through the slump. ”, after things started to improve.
Use crisis to prepare for the future
The idea that crises present great opportunities has been ingrained in people’s imaginations for decades.
It may seem clichéd, but it’s especially true when talking about adopting new technologies to boost your business.
Why? Investing in technology during a crisis can help companies prepare for when the crisis has passed, allowing them to “do more with less” in a downturn, saving money even more. because it will be available.
We are all familiar with the recent Covid crisis and looking back at what we could take from this, it was the companies that weren’t sitting that were spinning in their chairs and fumbling with their thumbs…
They were the ones who continued to develop the product and invest in new features for applications, new software for operations, and new technology for workflows.
Commonalities are easy to find. The companies that were least affected by the pandemic were those that had already invested in innovative products.
Strategic investment in technology during a recession
Here are some tips for navigating these headwinds and making good use of increased technology spending without sacrificing growth.
1. Don’t Stop Buying — Think Strategically
Many financial planners will say that when the economy slows down, they want to be more conservative with their business investments. Put off big purchases and focus on the items that have the potential to not only survive, but thrive. None of this is to say that you shouldn’t continue to invest in technology.
You definitely don’t want to go out and unnecessarily refurbish your entire office with the latest gadgets. But investments in digital workspace technology are more strategically placed. While this can be confusing to even consider investing in, launching, or developing new products and solutions while preparing to “break the hatch,” it actually remains a viable approach. .
Incorporating digital technology into business operations should remain a priority. Typically, when there is financial uncertainty, most companies tend to implement aggressive cost-cutting measures, including reducing technology investments, to combat economic turmoil.
But such cuts overlook the fact that lost productivity from underperforming equipment is a multi-billion pound problem for the UK economy.
Even thinking of loosening the purse strings can be difficult, but businesses must find ways to reduce lost productivity and continue to invest in and support technology to reduce downtime.
Whether your business is migrating processes and systems to the cloud, investing in more and better IT support, or introducing new solutions like smart lockers, your business will have the resources to thrive in the future and reduce productivity. increase.
From a productivity standpoint, IT disruptions cost employees about 545 hours of lost productivity each year, and more than half (56%) of employees report IT problems in the last few years due to remote work. They routinely report waiting up to 3 hours for the issue to be resolved.
Companies that invest in new technology enjoy increased productivity and reduced operating costs.
Lesson Learned: You need to be more careful with your spending in times of economic downturn, but delaying all operational spending can hurt your business in uncontrollable ways during these perilous times.
2. Go remote
Office space in London is the most expensive in the world. Prime office space is about £500 per square foot per year. I believe CFOs will be scrutinizing that cost more and more.
By letting go of cubicles and allowing employees to work remotely with their superior business laptops, not only are monthly lease payments and utility bills unnecessary, but employee productivity is increasing. can be significantly improved.
In fact, according to our own research, 83% of UK office workers agree that remote work is here to stay, with many opting to work wherever and whenever it’s best for them, from their kitchen table to their family home. I hope I can get the job done.
Bottom line: Investments in budgeting for laptops and Wi-Fi to allow employees to work outside the office can offset your monthly spending on office space.
3. Explore managed services
This can confuse even considering investing when trying to weather a recession. After all, when money is tight, who wants to pay for things they can do themselves? Is not it?
Outsourcing IT operations to a managed service provider typically saves 20% to 30%. This is often financially modeled by contract and reimbursed from day one of new service launch.
By investing in smart locker technology and more, your IT support team can secure, manage, and distribute your hardware quickly and easily. Therefore, companies that choose to use managed service providers expect to have the skills and access to systems to address issues related to cost, quality of service, and risk. Implement a smart locker, right?
Bottom line: Managed services allow businesses to spend more time finding and serving customers by delegating the responsibility of managing IT devices to third-party experts.
best to invest now
Investing in technology in the midst of a crisis can feel like you’re splurging on things you don’t need at that particular moment.
It may be confusing, but now that companies still have the capital to invest in new technology, it’s best to do so. This can actually reduce operating costs next year and save money in the long run.
More millionaires are born during recessions than at any other time. If you are smart, nervous and invest wisely, you will become a stronger option for your customers.
Adopting the right technology during a crisis can help you survive the crisis and, more importantly, put you in a better position when the crisis is over.
Photo credit: NESPIX/Shutterstock
Anthony Lamoureux is CEO. Velocity smart technologya smart locker provider.
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