Key Success Factors for Technology Modernization
Key Success Factors for Technology Modernization
Who doesn’t enjoy a great glass of old wine at a business success party? In that case, the older, the better! However, technology doesn’t get better automatically with time. You need to revamp, upgrade, replace and phase-out your old technology and move to better modern technology for staying ahead in the business.
The rise of the Cloud and modernization tools and techniques are the two recent significant IT industry changes. Many companies are moving towards IT modernization to meet today’s dynamic market needs. Technology modernization is not a luxury anymore but a mere necessity!
Let’s begin with understanding the reasons for adapting technology modernization solutions.
Why Business’s Need Tech Modernization?
The biggest challenge businesses face with the lack of the right technology is losing customers and market share. The use of modern technology in the operations and development of products & services can enhance your services and value delivery.
Technology modernization will bring significant USPs (Unique Selling Propositions) to your company’s products and services. You can offer features that your competitors lack to satisfy the customer needs and expectations. An efficient process and business flow will meet the desired target for your business.
Take the classic example of Blockbuster. Once Blockbuster was on every corner of the street for people to rent their VHS and DVD. But Blockbuster failed to adapt to the changing times. Unlike Netflix, which came up with an attractive streaming idea. Netflix took the radical step of shifting towards online business. This step made Netflix the biggest streaming platform in the world. This is an eye-opening example of heavy losses faced by the business due to a delay in modernization.
Another primary reason companies should adapt to modernization is that the more you delay, the more expensive and riskier it gets. Don’t wait until the technology becomes too costly for your company to afford it anymore.
What Are the Operational Challenges Businesses Face Without IT Modernization?
Various operational challenges affect businesses on a day-to-day basis due to old technology. If you have a decade-old company, you might have experienced many limitations on business operations. Old technology may need the employees to perform a particular business operation in the office. However, modern technology enables most of the operations to be functional irrespective of the employee location.
For example, most traditional companies have a fixed process for approving financial documents. The management and accounting teams have to be in front of the software to co-ordinate approval. In the absence of any important members, all transactions are stuck. This is because the old technology does not allow the delegation of responsibilities.
However, the use of artificial intelligence in fintech has the potential to revolutionize the financial industry and improve the way financial processes are carried out. You can see great examples in oil and gas industry trends.
If your business system lacks inventory data, you might miscalculate the stock availability. This could happen very often if your technology does not reconcile real-time data management. It could lead to hurdles for the business’ growth.
Hence, any inefficiency in the company processes can result in a long lead time or pause in the operations. This friction will affect different business aspects. With IT modernization, you can access better management, business flow, and efficient operational process in real-time.
What Factors to Look for While Modernizing Your IT Technology?
You should be looking at many different factors when finding the perfect technology fit for your specific business. But there are a few common factors that you must consider while finding a technology solution, such as:
- Business model – The new technology needs to be in alignment with your business model. The aim of technology must be to refine your business operations.
- Business processes – You need to check your business processes if they are performing their respective function. Make efforts to ensure that the systems work at their full potential so that you can phase out tedious processes.
- Internal operations – Analyze how your internal operations processes are currently functioning. Find the automation software that could help to simplify the process with proper resource usage.
- Resources – Finalize the budget you can spend on buying or developing technology. Remember to include the training cost, transition cost, and many other additional expenses that will come along with it.
- Market factors – Conduct a market study to understand the changing market dynamics. Also, consider the customer expectations and potential solutions to offer to your audience.
- Latest technology – Find out the latest technology alternatives present in the market. This initiative will boost your business operations, such as real-time database, flexible system, and automation.
- Competitor analysis – Your IT solution needs to be better and in-line with your competitor’s technology. Maintain your market share with the evolving customer needs and expectations.
- Dynamic Solution – There could be different unique ways to meet your market needs. Hence find a dynamic solution that will serve the customer needs today and tomorrow.
The factors mentioned above are the primary aspects of choosing your new technology. There are more factors, but that will depend on your precise business outlook and needs.
If you need a more detailed understanding of the tech debt meaning and modernization process, refer to our Guide for Successful Technology Modernization Implementation. For hassle-free technology solutions, connect with the Digicode today. Our team specializes in custom software development in Dallas and predictive analytics for retail can assist you in finding the perfect technology solution for your needs.