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When it comes to technology plans and budgets, IT teams traditionally focus on tangible IT tools like computers, servers, firewalls and Microsoft 365. Although this approach is essential, it can feel reactive and outdated. That’s why looking at the big picture can help drive business growth and create a competitive advantage.
Read: Creating the Perfect IT Strategy for Your Business
What Should Be Included in an IT Plan and Budget?
Technology is the lifeblood of your modern business. It encompasses everything in your company that provides voice, data, print or information. It also includes business-specific software for entering and retrieving information, machines programmed for specific functions and other essential services like phone systems, internet and cloud solutions.
It's clear that a proactive approach to your IT plan and budget is crucial. A comprehensive plan should cover all aspects of your technology infrastructure, ensuring alignment with your overall business goals. This proactive stance ensures that all these elements work seamlessly together to optimize your company’s productivity.
The High Cost of Ineffective IT Planning
Understanding the importance of inclusive IT planning is crucial. Let’s explore the costs associated with ineffective IT planning.
Unnecessary Technology Purchases
We’ve all seen it happen: a new purchase is made, but somewhere during or after implementation, it’s clear that the cost and investment didn’t pay off. The solution either didn’t meet the intended need, was rejected due to inadequate training or the integration costs were too high to sustain. These purchases can also be nearsighted, focusing on immediate needs rather than considering the broader technology landscape.
Overpaying for Technology Solutions
Business applications vary widely in price, often reflecting the value they deliver. However, it’s easy to end up overpaying for solutions that seem right in the long term but come with hidden costs for additional functionality or charge extra for every feature your team needs. Common pitfalls for this issue include lack of training, poor product adoption or resistance to change within the company culture.
Misalignment with Current Processes
Every technology change is an investment that must deliver a tangible return, not hinder operations. Success is measured by how well the new technology integrates with your company’s processes and enhances productivity. Consider business applications: the best ones are for your specific industry, built on extensive research to solve common problems and streamline operations. Yet, many small-to-medium-sized businesses (SMBs) feel the need to customize these apps or reports, which can lead to significant and ongoing costs.
Read: Transform Your Business with Effective IT Planning
The Indispensable CIO
A successful IT strategy is not only about tools and budgets; it’s also about visionary leadership. A chief information officer (CIO) with a deep understanding of both technology and business is a key player in this strategy. The CIO’s role extends beyond managing IT infrastructure. They must align IT goals with overall business objectives, identify opportunities for innovation and mitigate security risks.
Regular IT steering meetings involving key stakeholders are essential to ensuring IT initiatives remain aligned with business needs. These meetings provide a platform to evaluate ongoing projects, prioritize initiatives and identify emerging opportunities.
Read: What’s at Stake without an IT Strategy?
The Bottom Line
A comprehensive IT strategy is essential for driving business growth and profitability. By expanding your definition of technology, investing in a strong CIO and exploring the high cost of ineffective IT planning, you can position your company for long-term success.
You can also partner with a managed service provider like Thriveon. Our award-winning company has assisted industries for over 20 years in creating effective IT strategies and aligning them to over 500 industry best practices. By working with us, you can benefit from our expertise, reduce your IT costs and focus on your core business.
Schedule a meeting today for more information.
