Creating a Technology Plan that Works

TIM JEWELL

CPA, CITP

Blanski Peter Kronlage & Zoch, P.A.

tjewell@bpkz.com

bpkz.com

Topic: Technology

Wondering whether or not you need a technology plan and budget is like wondering if you should pay your taxes this year – a very good idea if you want to avoid trouble in the future.

Technology planning is smart business planning. It clarifies where you need to focus your resources in order to improve current processes and how you can use technology to support future growth.

Start by listing out all of the projects that you would like to accomplish to make your business better. These can be as small as adding memory to existing computers or as large as purchasing a new customer relationship management software (CRM).

Once you have a list of your projects, you can then determine which ones are affordable now and which ones will have to wait. The percent of your budget that should be spent on technology will vary by industry and business. Typically, your technology budget should be 6 to 15 percent of your total revenue. How much you allocate to technology in the beginning can also be affected if you are in the position of playing catch-up or need to match what others in your industry are doing in order to be competitive.

We recommend a three-year budget; the first year being fairly concrete with years two and three focused on projected costs. In order to set a realistic budget, account for such things as maintenance, licensing fees, copier and printer replacement/maintenance and new software or upgrades. If you know your copier needs to be replaced in two years, put that into a future budget so you aren’t caught off guard by big expenditures. Your budget should also include replacing 1/4 to 1/3 of your computers each year. Close to the end of each year, go through this same process to update your budget and revise your list of projects.

Make sure your technology budget aligns with the goals of the company. If better customer service is an overall goal and a new CRM would help you meet that goal, add the cost of new CRM software into your budget. If improving your website so it is more client focused and reactive to their needs (think UPS tracking) is on the list, get estimates on what it would cost to make those improvements.

When you think about your return on investment, you need to ask yourself if the company goals were met and what part technology played in meeting those goals. Did client satisfaction improve because your website was enhanced? Did the sales department work more efficiently because a new CRM system helped them track customers better? Were operations running smoother because there were fewer breakdowns, malfunctions and downtime because equipment were maintained and updated as needed?

The best way to make technology work for you is to plan for it; making sure that your technology budget aligns with the goals of each department and the overall goals of the company. Making sure technology is part of your budget each year ensures your company will continue to work proactively instead of reactively to make the most of what technology can offer.

2010-04-13 12:04:49 -0500