Strategy

Simplifying IT purchases

Understanding technology and tailoring a solution to fit the needs of an organisation are the twin requirements for technology adoption, says Paras Rastogi

IT managers at large corporate houses receive up to three calls from IT vendors keen on pushing their wares. Most of these companies have niche products that offer solutions to some business problems but are not complete end-to-end IT solutions. The issue, then, is the method adopted to choose the right technology. Judging the impact of any particular technology requires an understanding of its functions and the business goals of the organisation. The effective use of information technology has several requirements. Knowledge must flow so as to maximise its dissemination. The incentives and the infrastructure to adopt new technologies within the organisation must be in place. And organisations must have the capacity and structure to absorb the technology.

A mature investment process requires discipline, executive management involvement, accountability, and focus on risks and returns using quantifiable measures. Senior managers with responsibility for key business areas should be involved directly in prioritising and selecting the IT projects their organisations wish to pursue. Their decisions should be well informed, based on analytical rigour and sound logic. Furthermore, a mature investment process is a year round activity, not just a process to be carried out near budget time. Senior managers should be involved in devising and enforcing solutions to the problems that inevitably arise. Finally, the mature investment process is a learning process. The real-world results of IT projects and mission programmes should be continuously fed back to senior managers as they make decisions on new projects and operational systems on an ongoing basis.

The need for technology

The purpose of using technology in the organisation is determined by specific business goals—is it used to support inquiry, enhance communication, extend access to resources, guide employees to analyse data, enable product development, or encourage expression of ideas? After the purpose is determined, select the appropriate technology and develop the deployment road map. Create a plan for evaluating the progress of implementation and assessing the impact of

technology on productivity of employees. Whether an organisation opts to purchase software outright or adopts a hosted model, one of the primary drivers for long-term success is commitment. Organisations need to be sure that an IT vendor also shares a vision that can go along with their commitment in that technology.

Technology is changing rapidly and offers a huge array of opportunities to achieve the desired productivity levels. It is important to consider how various technologies differ and what characteristics make them unique and more feasible in achieving business efficiencies. The most important step really isn’t the technology but an understanding on information that is required, what it offers and why it is coming into the firm. Rather than describe the impact of all technologies, organisations need to think about the kind of technologies being used by other players across the globe, and for what purpose.

Insist on a reference site

While selecting any technology one should always insist on the reference site in a similar industry and also the subsequent road map associated with that technology.

Few organisations can change their hardware

Organisations are not immune to the changes in technology taking place all over the globe. The pressure to get online to have access to the newest technology can be strong. Senior mangers and administrators who feel overwhelmed may make hasty or ill-conceived purchasing decisions. Careful planning for technology use is essential because technology is expensive; very few organisations have the luxury of changing their hardware and software configurations after making a hefty financial commitment. Senior managers can work with the technology planning team and consult with computer experts in the community before taking decisions.

Managers sometimes fail to budget enough funds for hardware, software, maintenance, professional development, on-site technical support, and the services of a technologist/external consultant to provide support for integrating technology. This may lead to compromising the support and true capability of the technology. Careful planning is essential to develop a technology budget that provides for all such factors.

Decentralisation of decision-making

Organisational innovation should focus on the decentralisation of decision-making, which in turn requires better trained and more experienced decision-makers. Information technology is used best when small decision-making units are part of a network that facilitates the flow of new and complementary information, which can, in turn, be tailored to local needs.

In addition, complementary investments to apply these technologies are typically needed. Telecommunications infrastructure is central to the effective use of information technology, and large investments in telecommunications have been integral to any successful IT strategy. When new technologies are adopted, learning how to use the technology may take precedence over learning from the technology.

When adapting to a technology, it is important that an organisation forms a core team and has equipped them with the know-how and usage on post-implementation aspects. Training on the key technical areas of application software or hardware should be done well in advance before aligning the business goals with the deployment of the technology within the organisation.

A well-defined IT strategy is one where businesses clearly understand that technology is simply a tool and the elements of business environment—morale of the employees or the usability of tools you give them—are all connected. When companies start thinking about things holistically, they are well-positioned to move forward on the IT implementation journey.

The author has more than ten years of work experience in Sales & Marketing. He is presently working with an IT major as Strategic Account Manager and can be contacted at rastogiparas@yahoo.com