In today’s business world, information technology is proving to be the foundation stone, for any business to prosper. The size or the turnover does not matter; Information technology has become an inevitable part of any business large or small. IT in business has led to higher efficiency and higher profits, and hence we need to look at IT as an investment because the higher the investment the higher the returns.
To identify IT investment worth from your business, the points given things need to be taken care of:-
- The IT must be aligned with the business objective.
- Certain important business functions should be provided at higher quality
- Delivery should be specific and measurable.
- Cost effectiveness should be maintained.
The question that you need to ask here is that does your IT investment meet the requirements.
One of the main objectives of your business is to meet the goals, while doing so you need to take care that the IT investment should be directly aligned with the business goals and it should guarantee continuity and increased efficiency. Not only alignment of business goals, but also smoothen the business operations and strategies and also help in achieving the anticipated growth of business.
The best of the business companies are those, which have made a good use of IT. Every function in your business be it the sales, the financial domain, Human resources, Business operations, Customer service, marketing, strategic planning are all affected by it. You can say that the IT investment in your business has been successful, if all of these functions are able to meet up with the business needs. Until now you have just heard about the IT perks, but yes there are some hitches to this too.
IT has a lot of built in risks. When your risk starts aggravating further it becomes issues, when we are unable to handle issues they tend to hit the business in the shocking way. Some of the few issues pertaining to IT could be temporary stopping of system, breach of security, data theft, etc. these can virtually put a business to halt.
These hitches if not looked into can lead to lower productivity, lower margins and lost revenue. The top management should be discussing about the possible business risk that IT can cause. The strategy for IT should be developed in such a way that the risk is reduced to minimum and the effect of it is lower on the business.
The other risk involved with IT is the growth of IT itself, if you look around yourself – you will realize that technology is getting obsolete at a faster rate than ever before. Same is the case with IT technology, things keep changing in a year and hence investment on IT needs to be continuous. Ideally 70% of the total IT budget is dedicated just to IT maintenance and operations. For these things, the best way is to be proactive to solutions.
By now you must have realized that with a good IT plan you can increase the efficiency of your business, but however; at the same time it can also lead to disastrous performance if not paid proper attention to.