Technology – What Return on Investment?

Technology – What Return on Investment?

As an industry, we are not necessarily known for technological innovation.  While mobility services can be considered a fairly basic service industry, there is an amazing level of complexity that can surround our business.  Some of that complexity results from our own convoluted legacy processes but some of it is also related to the high-touch, one-off, very personalized nature of our business.

While consolidation in our industry continues to create businesses large enough in scale to justify proper investments in information technology, most of us are small to medium-sized enterprises that find it difficult to afford the investments that are necessary.  Gordon Moore, cofounder of Intel, observed in 1965 that the number of transistors per square inch had doubled every year since the integrated circuits that power our computers were first invented.  While the pace may have slowed recently, customer expectations based on this observation have not.  Consumers expect faster, smaller, more powerful products at ever lower prices.  That expectation is not limited to computers and smartphones.

The Role of Technology in our Business

In our hyper competitive business environment, our customers have come to the conclusion that service excellence is no longer a unique differentiator.  With the increasing availability of information systems connected through the Internet, customers view themselves as sophisticated shoppers able to quickly filter their choices down to a list of relevant suppliers.  Price has logically become an obvious, important determinant.  In order to avoid becoming commoditized, we have to understand what differentiates companies in the minds of this new class of customers that turns to Google rather than the Yellow Pages.

Increasingly becoming more and more important is both an understanding and investment in technology in creating this differentiation.  Corporate customers, for example, view service excellence as the cost for admission to contend for their RFPs.  Service delivery no longer differentiates but information about service delivery does, i.e., the application of technology to play back relevant information that is useful in gauging the value and quality of the service delivery.  Technology that enables work processes to become more transparent and efficient spells the difference.

The industry is not shy about making the promise to deliver such differentiations.  The actual results have been mixed not just because of shortcomings in our ability to adapt to new technology.  The failures are often related to inertia on the client side.  Customers “buy” the high-tech gimmicks but often fail to commit when it is time to implement and actually use the technology.

On the private customer side, things are changing as well.  A new generation of consumers that  has grown up with the World Wide Web now expect service and information, online 24 hours a day, 7 days a week.  They are more comfortable with technology capable of helping them do their own survey online.  Consumers who are used to shopping and banking on the Internet may rather compare movers online and instantly book their transaction with a credit card than entertain 3 separate Moving Consultants with appointments that require days to return with a proposal.

While the traditional business models in our industry are in no danger of disappearing immediately, anyone that does not see these trends and understand their effects on our business may be closing their eyes to opportunity.  Yes, there is opportunity and if you look around closely, you can see new online business models being established – some successfully.

Investment Required

For small to medium-sized enterprises, keeping up with the pace of technological change and related consumer demands is too big of an investment.  Off-the-shelf software solutions created for the industry have helped in reducing this investment cost but the mistake often made is that (having gotten over the tough decision to invest in a new operating software), most companies typically underinvest or fail to invest at all in a proper, disciplined implementation that includes a strong commitment to user training and support.

Consultants speak of Total Cost of Ownership as it relates to software and there is no agreement on the right ratios but by way of example, one formula shows that software cost should be some 22% of overall spend on the system.And your company has always treated me well and saved me the trouble of running all over town to get a prescription from your doctor first if you want to get over this disorder then use this very effective product called as cialis prescription sildenafil citrate pill . cialis is said to be useful in treating impotence. The real thing starts from below: Research – Acquire as much cialis viagra levitra information as possible on this topic. It is considered a disease, the third levitra prices most basic reason for death for adolescents. cute-n-tiny.com cost cialis viagra What is Erectile Dysfunction or ED? Erectile Dysfunction is common , and that everyone goes through it at certain moments of life.

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In my experience with large, medium and smaller enterprises in our industry, I have consistently noted a failure, in these companies, to recognize the importance of investments beyond the software, itself. I have often seen failed implementations resulting in tremendous disappointment, decreased productivity, business disruption and disillusionment all associated with this fundamental misunderstanding of technology investment.

Many companies in our industry are running their businesses and forcing their staff to work on crippled systems due to improper implementation.  Owners are quick to blame a faulty software but in many cases, the software may not be the issue at all.

When considering new operating system software, do a proper Total Cost of Ownership analysis.  If this is a skill set that you do not have within your company, it may be worth engaging a consultant that is experienced in this type of evaluation.  Understanding the total investment necessary in order to arrange a successful implementation and creating a plan that emphasizes the necessary user training and support can greatly improve the chances of success.

Conclusions

The good news is that our industry is starting to make some sense of the importance of wise technology investments.  Systems like RedSky which seek to serve a closed network, (UniGroup – in RedSky’s case) are making progress in connecting user companies and in using a collaborative, shared approach to IT-related investment.

Using such a collaborative approach within a closed network is a sound idea, in my opinion.  Much of the efficiency that can be gained from technology relates to the sharing of information and common resources.  Such sharing can only go so far in an open environment.  Even within closed networks, companies are reluctant to share too much information, a characteristic that points to why our industry remains too fragmented and inefficient.  While there are some great examples of organizations putting aside their own self interests for a moment in favor of the benefits of collaboration, we are sometimes too suspicious and too quick to dismiss great ideas that require cooperation.

Like it or not, technology is not a passing fad as some may have hoped.  Those who embrace it and learn how to leverage it to enhance their businesses and service offerings have a better chance of success.  Those who understand how to invest properly in technology will get better returns on their investment.