Fundamentally, digital technology exists to support business operations. Businesses make investments in things like hardware and software because these investments help an organization with their goals. Technology solutions can be implemented to meet very direct needs, such as the need for an accounting system. However, technology needs can also be indirect, such as the need to maintain overall reliability.
Technology As a Burden
Moreover, simply having technology does not guarantee that we have the right technology. In fact, outdated and obsolete systems can create a competitive burden. This is because in the age of Digital Transformation, nimble startups can leverage flexible cloud services, and bypass the need to make up front capital expenditures. Companies too slow to adapt to this shift may find themselves bogged down with obsolete solutions.
Superior Business Processes Is the Key to Relevance
In an era so dependent on instant, global access, the key differentiator is superior business processes. Businesses invest in hardware, software, and technical personnel because these technology solutions power those superior operations. In the modern age, it’s challenging to find business processes that do not rely on technology. Each aspect of a business, be it procurement, accounting, finance, shipping and receiving, customer engagement, vendor relationships, marketing, or payroll, depends on an underlying technological process.
Thus, business operations become dependent on technology.
Technology is a Double Edged Sword
When tuned properly, the success of technology translates to the success of the business. However, dependence on technology is not without risks. Technology concerns are vast, varying, and dynamic. Building a business on technology demands an ongoing and evolving commitment.
Multiple Paths
In the realm of technology, multiple paths can lead to a desired outcome. Various technology solutions can help businesses achieve their goals, but not every solution is equally suited for every task. This becomes evident when we challenge ourselves to understand what a business truly requires from its technology solutions.
Particularly, the cost of technology is a critical calculation for any business. Excessively high operating costs can negate the benefits of technology, with older technology often a contributor. Holding onto such older technology investments can lead environments to be inflexible, vulnerable and more prone to failure.
The world changes, and competitors are always seeking optimization. Holding onto legacy technology is akin to relying on an old car: it may get you where you need to go, but with poor efficiency and reliability. Moreover, as technology ages, it can distract from core business values. Consider the analogy of an old car requiring constant attention, taking focus away from the destination.
Therefore, it becomes imperative for businesses to be strategic with their technology choices, especially in today’s competitive landscape. Prioritizing modernization is key, but as we choose to modernize, we must also recognize that improvements do not stop with simple upgrades. Modern technology, such as public cloud, fuels Digital Transformation and serves to enhance the entire business, not just technology operations.
A Mosaic of Technology
This leads us to the reality of the modern business age, where technology spreads across the business landscape like a mosaic. From dedicated on-premise solutions to public cloud and various hybrid configurations, the modern age offers a vast, interconnected web of technology choices. Established businesses seek to transform to more agile cloud solutions, while new businesses craft nimble operations straight from technology’s cutting-edge. A modern business must contend not only with its own technology footprint but also with competitors, including nimble startups.-
As we embark on this journey together, understand that business and technology are deeply interwoven. Our aim is to identify some of the common challenges business face, and we’ll explore how modern technology can be harnessed to solve those challenges. Remember that the true goal of digital transformation is to alter the entire business, not just technology operations.