By John Monahan
It’s summertime, and your mind is on that upcoming week at the beach for vacation. Without question, you need that time away to decompress and refuel.
But don’t forget to spend time right now on planning your IT funding requests for the coming year. Actually, you should be pulling together your budget outline for the next five years.
Let’s consider some elements of your IT budget planning:
1. Never spend just once on technology.
A lot of businesses invest significantly in technology refreshes, then they turn around and walk away. They fall short by failing to develop a strategic five-year plan, which includes both mapping out IT needs and how they’re going to pay for that.
A lot of businesses invest significantly in technology refreshes, then they turn around and walk away. They fall short by failing to develop a strategic five-year plan, which includes both mapping out IT needs and how they’re going to pay for that.
It’s easy for a business leader to think that if I just spent X dollars on technology, I’m good for a few years. The truth is that after only a year, a business is falling behind again. Technology changes so fast that by Year Four, a business will have to spend double when it spent when they conducted that full refresh a few years earlier.
2. Plan to invest more than you might think every year.
Look at that five-year plan and get an annual commitment to invest about 20 percent of what you spent on your technology refresh. Doing small and affordable upgrades and enhancements to your infrastructure will allow you to get the full five years out of your technology.
Look at that five-year plan and get an annual commitment to invest about 20 percent of what you spent on your technology refresh. Doing small and affordable upgrades and enhancements to your infrastructure will allow you to get the full five years out of your technology.
3. Put your money to good use each year.
Basically, I’m reiterating the point above, because I can’t stress it enough. We hear constantly from new and potential clients that they can’t believe they need to invest the same amount all over again because they haven’t touched their infrastructure after refreshing it. But the simple fact is that you can’t implement a new infrastructure and leave it alone. Innovations come along that can push your business forward, but your technology needs to be healthy and in position for you or your IT partner to integrate those new features.
Basically, I’m reiterating the point above, because I can’t stress it enough. We hear constantly from new and potential clients that they can’t believe they need to invest the same amount all over again because they haven’t touched their infrastructure after refreshing it. But the simple fact is that you can’t implement a new infrastructure and leave it alone. Innovations come along that can push your business forward, but your technology needs to be healthy and in position for you or your IT partner to integrate those new features.
4. Know when it’s time to start anew.
Technology moves fast. And each generation of products is more efficient, more effective and simply more savvy. Eventually, you’ll need to make that significant investment to refresh your infrastructure. Start mapping out what you’ll need now – before it’s mission critical – and develop the business case to get the significant level of funding that the right refresh requires. I often compare investing in technology to buying a car. The 2015 models are much better than we saw in the 2014 versions, but think about what’s coming next with the 2016 models.
Technology moves fast. And each generation of products is more efficient, more effective and simply more savvy. Eventually, you’ll need to make that significant investment to refresh your infrastructure. Start mapping out what you’ll need now – before it’s mission critical – and develop the business case to get the significant level of funding that the right refresh requires. I often compare investing in technology to buying a car. The 2015 models are much better than we saw in the 2014 versions, but think about what’s coming next with the 2016 models.
5. Don’t be married to the best-developed plans.
That’s all those are: plans or blueprints or roadmaps. You need some general direction of where you are headed with your technology, but be willing to get off the highways and explore some back roads. Keep your eye on the destination, but some of the more interesting things can happen when you’re flexible in the journey. You know I like analogies, so another way to think about it is considering how you play on the basketball court. If you stand flatfooted, your opponent will run right past you.
That’s all those are: plans or blueprints or roadmaps. You need some general direction of where you are headed with your technology, but be willing to get off the highways and explore some back roads. Keep your eye on the destination, but some of the more interesting things can happen when you’re flexible in the journey. You know I like analogies, so another way to think about it is considering how you play on the basketball court. If you stand flatfooted, your opponent will run right past you.
6. Let technology drive your business.
You need to understand that technology is an inhibitor rather than an expense. In fact, making the right decisions about technology can help your business grow with less. However, you need to rethink how you invest your dollars so that you are agile and can jump at new business opportunities. The right technology allows you to be nimble.
You need to understand that technology is an inhibitor rather than an expense. In fact, making the right decisions about technology can help your business grow with less. However, you need to rethink how you invest your dollars so that you are agile and can jump at new business opportunities. The right technology allows you to be nimble.
7. Security is not a “nice-to-have.”
Every day, we seem to read about yet another security breach – and we’re talking massive attacks, not just a trickle here or there. Whether you’re part of a Fortune 500 company or a three-person law firm, you have the same data characteristics that hackers find valuable. You need to budget and then spend those allotted dollars on ongoing penetration testing. And don’t forget to dedicate some financial resources toward protecting your mobility products and networks, so you are controlling who has access to any level of your data.
Every day, we seem to read about yet another security breach – and we’re talking massive attacks, not just a trickle here or there. Whether you’re part of a Fortune 500 company or a three-person law firm, you have the same data characteristics that hackers find valuable. You need to budget and then spend those allotted dollars on ongoing penetration testing. And don’t forget to dedicate some financial resources toward protecting your mobility products and networks, so you are controlling who has access to any level of your data.
Running a business requires continual investments, starting with technology. Make sure you have an active line item for technology spending, because your competitors certainly are making investments in their quest to get ahead. Don’t be intimidated by the cost of technology, but take charge by developing a long-term plan where you are positioned to spend strategically.
The bottom line is that you get out of your technology what you put into it.
John Monahan is a co-founder of Convergent Technologies Group.
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