Businesses often face the ongoing challenge of balancing their budgets with investing in resources for growth. This is especially true when it comes to technology, which can require frequent and/or high-cost purchases to keep up with ever-evolving advances.
Spending only what is necessary and coming up with creative alternative solutions can help, but knowing where to start, and how to navigate different market options, can be overwhelming. To help make this task a bit less daunting, 12 members of Newsweek Expert Forum share their top tips for optimizing your company’s technology investments.
1. Leverage Cloud-Based, Scalable Solutions
Maximizing value while minimizing cost is fundamental for business survival. In today’s economy, investments in technology are especially important for creating alternative solutions through rapid innovation. To optimize the total cost of ownership of technology investments with limited budgets, businesses can leverage cloud-based, agile, scalable and open-source solutions across products and services. – Lillian Gregory, The 4D Unicorn LLC
2. Implement Tech Swap Syndicates
Adopt and implement tech swap syndicates. Join or create a consortium of companies for sharing or exchanging lightly used software licenses or technology. The mutual exchange system is centered on the concept of a circular economy, which not only fosters community collaboration but also optimizes tech investments. It is also a sustainable idea that reduces waste. – Dr. Kira Graves, Kira Graves Consulting
3. Embrace a ‘Less Is More’ Philosophy
Companies can optimize tech investments in today’s economy by embracing a “less is more” philosophy. Prioritize technology that scales and adapts to changing needs, ensuring you invest in solutions that offer long-term business value. Encourage innovation by exploring open-source alternatives and fostering a culture where employees who are closer to customers can contribute creative tech solutions. – Bala Sathyanarayanan, GREIF Inc.
4. Take Stock in AI
Believe the hype about artificial intelligence, as it’s a game-changer in terms of cost management. All C-level executives need to assess how AI can be used to boost the productivity of existing employees, how it can replace certain human functions and how it can help do things that haven’t been possible in the past. Taking stock today and planning accordingly will lead to future savings. – Peter Marber, Aperture Investors
5. Invest Proactively and Collaboratively
In the current capital-restrained environment, businesses need to be proactive in their investment strategies. Improving capital planning processes and controls, leveraging tools and automation to forecast market needs and increasing collaboration amongst key organizations like product, sales and finance organizations can help optimize investments and drive profitable growth. – Steve Smith, Zayo
6. Invest in Growth Tools That Align with Company Goals
Regularly audit your tech stack to ensure that you are investing in tools that drive growth and align with your objectives. An audit can help you identify underutilized resources, outdated systems or inefficiencies. This process aids in fostering informed decision making about where to invest in upgrades, what to scale back on or where to reallocate resources. – Gergo Vari, Lensa
7. Evaluate ROI and Explore Low-Cost Alternatives First
Businesses can optimize tech investments by evaluating ROI and providing justification reports that delineate the details of the investment. Before investing in expensive solutions, leaders should explore alternative solutions like free trials or employee upskilling . – Alan Wozniak, Business Health Matters (BHM) Executive Consulting
8. Assess Tool Adoption
Assess adoption. A feature or a tool without adoption represents stranded value and cost. Do an audit to assess adoption, and then reduce or eliminate what you no longer use. – Karen Mangia, The Engineered Innovation Group
9. Conduct Regular Audits
To optimize technology investments, companies should conduct regular audits to identify underutilized tools and explore cost-effective solutions. By aligning tech investments with strategic goals, prioritizing essential upgrades and fostering a culture of innovation, businesses can ensure they are spending wisely and maximizing their technological capabilities without unnecessary expenses. – Anna Yusim, MD, Yusim Psychiatry, Consulting & Executive Coaching
10. Adopt a ‘Lean IT’ Approach
Adopt a “Lean IT” approach to maximize customer value through the efficient use of IT resources, eliminating waste and streamlining processes. By applying principles from the Lean methodology—which originated in manufacturing but has since been successfully applied in various sectors, including IT—companies can make more informed, effective technology investments. – Britton Bloch, Navy Federal
11. Measure Tech Impact on KPIs
To ensure the effectiveness of technology solutions, it is important to monitor their performance continuously and measure their impact on key performance indicators. This practice helps organizations identify areas that require improvement, optimize resource allocation and make informed decisions about future technology investments. – Tammy Sons, Tn Nursery
12. Weigh Investment with ROI
The secret to spending wisely in tech is weighing the tech’s investment with how much ROI it can bring in. This is highly important when you look at a tech stack. There are so many cool things out there that you may feel you need a lot of them when you don’t. Figure out how much you will use a certain tech piece and whether it will increase your bottom line within half a year. – Baruch Labunski, Rank Secure
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.