For financial controllers and CEOs, it can be a daily occurrence to have a quote for new equipment come across the desk. Perhaps it’s two quotes, one of which is notably lower. In the world of Information Technology, this scenario plays out regularly.
It makes perfect sense to avoid spending unnecessary money on equipment that will not be used frequently, or that does not represent a critical task within the company. Most businesses have several areas where tightening the belt would improve efficiency and increase profit margins.
However, when looking at a possible expenditure relating to your businesses’ IT environment, it is important to consider a few things:
What is the value of your businesses’ time?
When a piece of equipment fails, it doesn’t just effect itself, or a single user. If emails cannot be sent, shipments sent out, or critical files be accessed, then the company has essentially ground to a halt until the issue is resolved. You’ve effectively closed for a period of hours, or sometimes days. This time is often not considered when making a decision about replacing equipment, or investing in software or maintenance. How much is it worth? How much revenue is being lost during downtime?
All too often we see catastrophic failures that could have been prevented by investing just a fraction of the lost revenue earlier, in maintaining the network and hardware.
Does the success of your company improve along with your equipment?
For many businesses, the tools that they have at their disposal directly impacts how well they do their job. It affects how well they provide service to their clients, and how their company is perceived. Unfortunately, we see many cases where managers do not realize this, despite it being the case. A moderate investment in the future and equipping employees with excellent tools can have a dramatic impact on a company’s bottom line. When evaluating your IT environment, it is important to consider that an investment now could pay dividends down the road, in terms of setting yourself apart from your competitors, providing great service, and increasing efficiency and profitability.