The way an SMB uses IT to drive strategic business initiatives should determine how the company invests in IT tools. When Advanced Network Solutions first started providing IT services two decades ago, the market was much less complicated.  Modern technology is complex and confusing, and for SMBs it’s sometimes hard to determine if all the work that goes into IT is worth it. It is, but that isn’t always apparent if you don’t understand the role IT plays in your SMB.

The Value of IT

Before you can determine the role IT plays in your organization, first understand the potential value IT could provide your organization. Consider these two scenarios:

Scenario 1: Joe is the CEO of Loganwood Safety Supplies. Loganwood employs 30 people as inside sales, outside sales, warehouse personnel, equipment mechanics, and accounting and back office. The company’s IT infrastructure includes a single server that sits in an unfinished attic storage area, a network router, and the computers, mobile devices, and software the team uses for daily operations. If something goes wrong with one machine or with any of the software and Sylvia, the IT person, can’t fix it, Joe must call in an outside provider. The company network is usually offline one to two days per month, which puts everything behind and causes confusion when it’s time to collect payments, conduct an inventory, and plan for the future. It’s frustrating, but Joe and his team have learned to work around it.

Scenario 2: Barbara is the CEO of Robertson Industrial Safety. Robertson also employs 30 people in the same positions as Loganwood. The IT infrastructure is similar, but Robertson understands that IT is more than just a requirement to keep their business operational. Instead, the company took the time to determine how IT could drive the business forward, and as a result, the sales people stay busier, the warehouse runs well without a lot of dead stock, and the accounting and back office employees stay ahead of invoices and payments so there are never any cash flow issues. The IT system also makes it easier to forecast future demand, which helps the company operate leaner and more efficiently.

These scenarios represent similar companies with dissimilar IT infrastructures that perform differently in the market. IT can be a tool that helps businesses achieve success, but how you use that tool determines how valuable it is.

Determining the Role of IT

If how you use a tool determines the value of it, then it’s necessary to determine what usage gives you the most value for your investment. Say you need a hammer to drive nails as you hang drywall. You probably wouldn’t invest in an expensive sledge hammer because it’s overkill. Using it would not only slow you down, but it could damage the drywall.

A standard 16 oz. hammer will work just fine unless you’re hanging a lot of drywall. Then you might consider an automatic hammer because it’s a more efficient way of driving nails. How you plan to use that hammer determines the hammer you purchase.

How can your IT investment drive your business? Is it information aggregation, analysis, and forecasting? Do you have access to data that could change the way you make business decisions? Could you use IT to automate processes and make your business more efficient? Businesses that leverage IT to help achieve strategic business goals experience abundant benefits, including:

  • Expansion into new markets;
  • Improved workforce development;
  • Business process improvements;
  • Higher customer retention;
  • And greater innovation.

For most SMBs, IT isn’t the core business. It should, however, drive the business. It should be an enabler that allows your team to stay ahead of the competition and focus on moving the business foreword, not a cost center that sucks resources just to keep essential daily operations up and running. IT should be transformational; a tool that helps you achieve your strategic business goals. If you’re unsure of the role IT plays in your business, or if you think there are ways that you can improve the value of IT, call Advanced Network Solutions. Our team of IT professionals can assess your current IT infrastructure and make suggestions for how to improve the strategic value of your IT investment.