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When Should You Invest In New Technology?

No one wants to part with cash, but when your business depends on out of date technology for its Business Intelligence and data analytics needs, a sensible IT investment may be in order. Over the past year, we have come across data analytics packages that are literally decades old. Their warranties have expired, and it is difficult, or even impossible, to find support resources or developers who ca nmake updates. If you are in this position, you may be exposing yourself to a number of business and financial risks. Not only are you making operating decisions based on data thatis almost guaranteed to be out of sync with current reality, you are sitting on a potential IT cost time bomb if the system fails) before it can be replaced in an orderly manner). At some point, you will probably need to upgrade.

In this newsletter, we want to share some of our insights into knowing when to upgrade or not and how to make the upgrade process as cost effective and painless as possible.

It’s All About the IT People.

Regardless of industry, any successful and sustainable IT organization needsto recruit skilled IT resources to support the extensive investments made in software and hardware. From a BP Analytics point of view, managing your data on a standard software technology can save you a lot of headache down the road for a number of reasons:

First, you’ll have greater success locating good and reliable people to support and develop your IT infrastructure simply because there is a mass market of trained software engineers and developers.

Secondly, it makes good business sense to diversify your human capital risk. You don’t want to be in a situation where your systems are down and because the technology is outdated you have to “scramble” to find the right people to fix it.

Finally, if a large community of companies shares your technology, most likely your IT resources can tap into a vast knowledge of expert advice andrecommendations online.

Bottom line: standard, common technologies mitigate your risks and allow you to select IT professionals from a wide and proven talent pool.

Costs.

We understand the urge for a company to maximize previous investments made in technology, however, consider the costs and impact of an unstable software system on your internal resources, customers and suppliers. For example, last year we encountered a company that was operating on a software package that was supported by one internal person. This package was not able to provide the depth or quality of data requested by customers. Ultimately, a technology savvy competitor was able to wrestle away a significant amount of market share simply by addressing and supplying the customer’s data requests.

When calculating costs versus benefits, think about the following questions:

A) Will you have the right IT people always accessible to x software problems before it impacts your business?

B) Can routine software updates save you the hassle of a tedious and costly upgrade in the near future?

C) Is there a risk of saving IT dollars now at the expense of losing additional business?

D) finally, can state of the art technology be your competitive advantage (i.e. providing a better service oering to your customer)?

To Upgrade or Not to Upgrade?

If the answer to the above questions makes you nervous, then diversify your risk and upgrade your software technology to one that is built on a standard and well-known technology platform. For example, in the database arena there are dozens of database software packages that are built upon on technologies known to a few. In contrast, large “Tier 1″ database companies such as Oracle, IBM, Microsoft and MySQL have tens of thousands of software engineers and developers worldwide that can support it.

By implementing a software strategy that relies on mainstream, current technologies, you’ll save on costs over the long term and remain stable and strategically competitive in your industry.

How We Can Help:

Our proven process of developing databases and analytical reports is quite simple:

Risk Management: We will do a situation analysis to understand your “business requirements” and present the optimal solution to you.

Customized Solution: Your application is tailored and we always use established mainstream technologies.

Partnership: Our vision is to work closely with your team and identify opportunities to automate and increase worker productivity via technology.

Cost: Only pay for the software that you “need” and we are committed to utilizing low cost software solutions that fit your technology portfolio.

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