Did you hear the one about Target having to close every single one of its stores in Canada because of IT? By not making technology a priority, as the story goes, Target killed an entire nation of stores.
As written in a 2016 article by David Gewirtz for ZDNet.com, Target Canada missed the point that information systems are the “glue that hold it all together.”
There is a cost to not making IT a strategic priority. And for Target Canada the price was devastating.
Is technology hurting your business?
Here are three questions to ask yourself:
How long is just “taking what we can get” from our system good enough?
In many of the ERP rescue situations we’ve be brought in to, we’ve found that companies have built business processes and workarounds based on the limited capabilities of a legacy application. For various reasons – budget, company politics, business priorities, mismanagement etc. – these companies had not kept pace with version upgrades and settled for a less than highly optimized environment.
Stagnant technology often results in stagnant or declining business performance. How long can a company survive in a competitive market if its leaders just continue to “do things the way they always have?”
Can our organization survive a security breach?
Older versions of applications and dated server infrastructure can result in chronic performance issues and vulnerability to viruses, data breaches and even downtime. All of these issues take time to resolve – time IT personnel could be spending on more strategic initiatives. Time is money after all. But perhaps more severely, breaches can lead to a company’s downfall through decreased valuation or hefty penalties from regulatory agencies.
A company that hasn’t maintained its IT environment is rolling the dice on whether or not it can survive a security incident. Consider the financial drain on a company’s bottom line, not to mention the cost of a hopelessly ruined reputation.
How is our business stacking up against the competition?
If you’re not effectively leveraging the power of data and technology, it’s quite possible that your competitors are and they’re stealing your customers. An updated ERP application provides dynamic business intelligence reporting capabilities that make real-time data available wherever and whenever it’s needed.
We understand some companies just may not have the human resources or capacity to regularly analyze operational or production data. This can handicap an organization from making timely decisions or interventions about anything from time-to-market to product integrity. This is where neglecting technology can put a company at risk to lose market position and certainly future revenue.
What can you do about it?
We often recommend that our clients work to completely understand the company’s business objectives, as well as what data and KPIs are most important to achieving those goals. Data must be consistently accurate and highly available to help leaders make sound strategic decisions, respond quickly to market changes or identify negative trends in sales or customer service, for example. Once it’s spelled out how technology facilitates business progress, continued investment in technology can be viewed as a high priority and strategic imperative.
Attend our Free Webinar:
The Cost of NOT Upgrading Dynamics AX: What You Need to Know
If you’re experiencing increasingly complex business operations or attempting to keep pace with the rapid growth of your business — and your legacy version of AX just isn’t keeping up — it’s costing you money today, and certainly in the future. Read more.