Buy The Right Technology for your Business

What needs to be top-of-mind when you go shopping for your business’ technology? According to two Chartered Accountants who are certified specialists in information technology (CA∙IT), the number-one consideration is gearing technology to your business needs.

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Technology should adapt to your business, not vice versa, according to Chartered Accountant David Popowich, President, Second Foundation Consulting Inc. in Kitchener. “You know your business best, so determine what you need and what you want to do first. Tools are enablers to run the business better, and the more sophisticated the business, the more sophisticated the technology.” Chartered Accountant Richard Morochove, Morochove & Associates Inc. in Toronto advises that you take steps to ensure that you purchase the right tools at the outset. “Avoid buying technology for technology’s sake because its life span is fairly short – about two to six years. This means you should be prepared to upgrade every two years and eventually replace your systems and hardware within approximately six years.” Getting Started and Budgeting Whether you need the newest technology depends on your business growth. Look at your business processes – what tools are required to give you the information you need to make effective decisions? Popowich advises that you plan staged purchases of new technology (older technology holds your business back), and spend your dollars wisely where it is most needed. Avoid the “Big Bang” payment approach – budget for technology outlays every year over a five-year cycle to get your money’s worth. “Decide on the level of sophistication you need, and then step-by-step, add different levels of technology for your specific business needs. “First consider tools to help you manage your structured accounting. ERP (Enterprise Resource Planning) is a way to integrate the data and processes of an organization into one single system, allowing you to accumulate, analyse, and finally report on data. “Next, consider business-intelligence tools that will allow you to convert and present data in graphical formats that yield information about your own business and the larger industry,” suggests Popowich. “Finally, consider managing the unstructured data including e-mails, contracts and images. Document - management and customer-relationship-management (CRM) tools are designed to perform this function. Sharepoint (a Microsoft product), for example, allows you to organize data online in databases – which sure beats looking in a filing cabinet! “Then blend all the technologies together, and you have the ultimate tool, tailor-made for your business.” Technology for Mobile Workforce As technology increases in quality and speed, recent additions to the marketplace are now providing more capacity at cheaper costs – a great benefit to a mobile workforce. Companies can now equip employees working outside the office and on the road with devices that increase their connectivity and help them in their jobs, according to Morochove. “The Netbook may suit the needs of some businesses and is an interim move to more powerful computers. It is a smaller, lighter and less powerful device than the Notebook (laptop) and provides employees with Internet access and e-mail. “Smartphones are the wave of the future and may be the preferred mobile solution. These include such products as the BlackBerry Bold and iPhone, which are cell phones with significant storage capacity and processing power, including access to music, video, Internet and e-mail. A full-fledged keyboard lets employees conduct transactions anywhere in the world that has cell-phone access. “Then there are multi-function peripherals – tools that attach to a computer and combine printer, fax and scanner capabilities, allowing you to transfer text (for example, a proposed contract) into the computer so you can edit it. These devices also help you go green by saving on costs, space and power. The price ranges from $200 to $1,500 – a lot cheaper than my first fax, which cost around $2,000,” says Morochove. Why Reinvent the Wheel? Don’t fall into the trap of thinking you can do it better yourself – using a specialist is like having an insurance policy. Popowich recommends that you, “Let the specialists do their job so you can do yours. If you are setting up infrastructure, a specialist will not only advise you but transfer 80 per cent of his or her knowledge to an employee, who can then maintain the systems and programs. The consultant is always on hand for the remaining 20 per cent.” “Unless you are buying technology all the time, you don’t know what is available,” continues Morochove, who advises that businesses looking for a CA with IT expertise can consult a directory of CA∙ITs: http://www.cica.ca/career-development/ca-specialization/information-technology/item1770.aspx.