Most CEOs and directors in the modern-day business landscape assume that business decisions solely rely on their own experience and instinct. However, the world has been ushered into a technology-oriented economy in the last few decades. Business decisions can no longer rely on past experiences and managers’ and CEOs’ instincts, especially when choosing a new technology solution. Previously, HR or operations directors could act alone when choosing a business solution, but now companies need all departments to work together. Companies need to include CIOs and CTOs in the initial phases of their decision-making processes. Failure to do so can have dire consequences for the department and company. When an organization cannot involve its information and technology professionals in decision-making processes, they are left with an incomplete vision of technology infrastructure.
What is improper decision-making in business when it comes to technology?
Business decisions are a key component of any executive job. However, with data and technology taking over the world, the frequency and urgency of business decisions have increased. Unilateral decision-making focusing on one department or aspect provides incomplete information and results in complexities rather than solutions.
For example, company X has decided to onboard a new tool to add value to their business while simplifying complex tasks. Company X reaches out to a CRM supplier who gives a compelling demo and looks into an ERP Solution as a counterpart. Company X then tasks a team member to implement a cloud-sharing solution for internal and external communication. In all these scenarios, Company X does not involve its IT department as Company X’s criteria for choosing the mentioned solutions are basic functional requirements and the top-reputed products.
Eventually, since Company X did not loop in the IT department, the tools they have onboarded do not integrate and cannot be customized to its exact needs. Therefore, the company loses not only the money it invested in purchasing and implementing these tools, it also loses money doing damage control due to the incompetent tools. This happens when organizations do not involve CTOs or CIOs when making technology decisions regarding the business.
Every organization has various technological components to factor in when opting for a new solution. If the tool a company opts for does not provide the desired results, the company faces many losses and internal disruptions. Therefore, even if a business solution looks like the perfect fit on paper, it might not be the ideal fit for every organization. This is why companies need to consult their CIOs or CTOs in decisions regarding technology infrastructure.
How can the IT department streamline business decisions regarding technology?
Streamlining business operations through technology has been a challenge for most organizations. In fact, most CEOs, COO, and CFOs complain that they don’t see much business value from the expensive and time-consuming technology they have installed to improve business operations. This lack of value is because these high-ranking officers do not involve the IT department when choosing and implementing the systems. If a company involves IT experts from the get-go, it will have a business solution that meets key requirements and thus provides business value. Let’s explore some of these key requirements in more detail:
The IT department leaders, such as CIO or CTOs are well-versed in technology solutions. They can thus make efficient decisions regarding what business solution can complement or upgrade the existing infrastructure.
Integration with legacy system:
Organizations must opt for a solution that can be easily integrated into their existing technology ecosystem. A CIO/CTO’s involvement in selecting the business software ensures connectivity between disparate systems enabling business stakeholders to make better decisions.
Helping with non-functional aspects:
A business owner, CEO, or COO may know what they want from a solution, but a CTO or CIO knows what it takes to achieve those goals. This basically means that the IT team can help companies beyond the basic functionalities of a business solution. It can help ensure that the chosen business solution continues to perform effectively, is secure, and has no legal complexities. A CIO/CTO can guide a company toward the best solutions that meet the current needs and scales to meet future technology requirements.
Technology and business decisions:
Technology plays a key part in the current business landscape. All business departments, whether marketing, finance, sales, or HR, need technology to survive. From cloud data to social media to advanced analytics, technology is helping and shaping business strategies. For a sales or marketing director, good customer experience is crucial. Modern-day customer experience is linked with SMAC technology. Similarly, staying on top of industry 4.0 trends is a must for an operations director in the manufacturing field. Industry 4.0 is defined as merging IT with operational technology.
- A CEO or COO alone cannot answer complex questions when making business decisions regarding technology revamps. Partnering with a CIO or CTO can help them make good, informed decisions that positively impact the company.
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What to do if you do not have a dedicated in-house IT team?
For companies that do not have high ranks in their IT departments or do not have in-house IT experts, the best possible option is to reach out to technology companies like AlphaBOLD. AlphaBOLD is an innovative technology consultant focusing on building solutions that overcome the modern challenges faced by our customers.
Businesses reach out to AlphaBOLD for various reasons; sometimes, they are looking for help with specific platforms (such as NetSuite, SharePoint, or Microsoft Dynamics); predominantly, though, they are seeking solutions that require unique business and technology expertise. These solutions are often system agnostic, amalgamations of various technologies. When companies reach out to us, we connect them with our engagement managers. These business analysts spend time understanding the organization, business strategy, and plans.
Technology, data, and software are now at the essence of every successful business. Every company is looking for technology solutions to help them stay ahead of the competition and achieve their overall goals of profitability and productivity. However, technology-related business decisions are complex and require a collaborative effort from IT team and the executive staff of a company. Without the input of IT experts, a company will not be able to choose the best possible solution for the business.