As a business leader, your return on investment (ROI) is top of mind when you’re in the evaluation and decision-making process. Whether it is choosing which provider to use or the technologies to leverage, when it comes to cost, one question is clear: Will I get a positive ROI on my investments?
While there is no ROI on fixing what is broken in IT, there are major cost-saving differences when using a proactive approach over a reactive one. Let's look at where the dollars go with each approach.
ROI of Reactive IT
First, what is reactive IT? Nearly all Managed IT providers, and even internal IT teams, are using a reactive approach to IT. With reactive IT, technicians and engineers spend 100% of their time reacting to support tickets and projects that come up. It is all set in motion by the client. This leads to masses of tickets and repeat issues that go unsolved, and not to mention sunk costs.
So, what is the ROI? 100% of the IT budgets go toward these reactive, short-term solutions. 100% of those dollars are spent on maintaining the day-to-day. These are lost costs. Another way reactive IT costs without providing any return is the focus on replacing old with the new. A common approach to replacing aging hardware is to replace it based on age. Proactive IT asks all the right questions up front, and considers the budget a top priority in the IT strategic plan.
ROI of Proactive IT
With proactive IT, the initial investment of time is set in motion by the dedicated vCIO who leads your business through the IT strategy, budgeting and planning, alignment toward IT best practices, and guides the entire process – so your department heads and employees don’t have to.
The majority of the spend is on the proactivity of the strategy, getting elevated levels of security in place, challenging the status quo of your current technologies. We prompt questions like, “why did we make that technology investment in the first place? Is this still the best technology for us? What are we hoping it would accomplish for us? Is it accomplishing our objectives?”
Additionally, in a proactive approach, we look at the IT budget, and ascertain how we could best spend those dollars. What are our options?
Questions Every Business Leader Should Ask:
- Where does my IT investment go?
- How many daily support tickets are we seeing?
- Do we have an IT strategy in place?
- Could we be more collaborative, more efficient, more productive, and satisfied with our technology?
To get started with a team of IT experts, a dedicated Fractional CIO, and a proactive approach to IT which will save you time and cost, schedule a meeting today!