Posted by: Brandon W. Jones | February 21, 2012

How To Make Technology A Smart Investment

Have you gotten the latest iPad, tablet, or smartphone? Have you upgraded to the newest operating system yet? What technology do you use at your company? Technology is a very valuable tool when used properly and at the right time. On the flip side, however, when technology is not used at the right time it can be destructive for any company or organization.

All new investments start and end with leadership. As leaders, you must invest wisely in technology so your company is successful and maintains stability. I would like to suggest three factors to consider when investing in technology.

1. How does it effect productivity? First and foremost, leaders must look at the productivity of a particular piece of technology. How much will the technology increase productivity?

Will it eliminate the need for other resources? If the technology will increase the productivity of the group than it may be worth the investment. As part of productivity, sometimes it is important to invest in technology just to s

2. Is it costly to implement? If the increase in productivity is significant, then you must look at the cost of implementation. Will the cost prohibit the implementation? Are there going to be recurring costs associated with the technology? Are there high upfront costs with limited to no maintenance costs in the future? How long will you have to use the technology to recover your return on investment? Technology can be a very significant investment, so you must carefully review all associated costs. Adopting a new technology cannot be something done in haste because it could cost you for many years. You must be very careful when investing in technology because if you make a wrong choice, it could put your company out of business.

3. Is the implementation timely? When determining the timeline for the implementation of a new technology, you must look at the market and where other companies are going. If many other companies are investing in a particular type of technology, you may need to invest in it just to stay on pace with the competition. At the same time, if you are the very first company to invest there is a great risk. If the technology becomes big you will be able to capitalize on the fresh new market, but if it does not go big you may end up spending a lot of money on a failed product.

Each of these factors has a major bearing on the success of a new technology within a company, organization, or business. If you don’t think about productivity, cost, and timeliness of the implementation you could make a major mistake. You could end up getting into a situation that leads to failure.

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Responses

  1. Interesting read! My CEO and I were talking about this very thing yesterday – investing in technology companies and furthermore how to know which tech company would be a good investment. After our chat, he then wrote a blog post about it, you can check it out here: http://bit.ly/nerds-rule

    • Welcome Leeanne! Thank you for your comment. That was a very interesting post that you mentioned. As you pointed out, it is quite a challenge to know when and how much to invest, but with careful study and courage the right investment can be very beneficial. Thanks again for your comment!

  2. […] understand their role in the implementation. Let them know that they play vital role in the implementation. If they buy-in quickly and assist in the implementation, they will benefit as well as the group, […]

  3. Hi Brandon,

    I think that this post is excellent.

    I’m writing to seek for your permission to include that particular post in our May/June issue of our monthly e-Mag named Guild of HR e-MAG.

    Let me know if you’re keen and we can take this forward 😀

    Cheers!

  4. […] The final suggestion is to help your employees understand that they have a vital role in the implementation. If they buy-in quickly and assist in the implementation, they will individually benefit and the […]


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