Does Your Business Spend Enough on Technology?

Organizations come in all sizes and with it, there are all different ways of conducting business. Some companies choose to spend more time and money on their organization’s IT than others do. This month, we thought we would briefly go through four different tiers of technology investment and what they mean for your business. 

Enterprise Level Investment

When someone talks about “enterprise” level, they mean the type of spending that you’d come to expect out of a huge company with seemingly endless pockets. When it comes to technology, enterprise spending means that they are not only using state of the art technology, they are also investing in it for the numerous ways it can help their business. Operational and support effectiveness aside, high degrees of technology spending works to automate more tasks, retain employees, and even reduce waste. 

Satisfactory Level Investment

Many businesses like what technology does for their business, so they will invest enough in it to ensure that they have sufficient IT in place. Companies at this level typically employ an IT team (or at the very least a single IT administrator); they have both public cloud and in-house computing resources, and actively work to use technology to improve their business regularly. With up-to-date technology and data insights, the company that pours a fair amount of capital into their IT will have more to work with.

Basic Level Investment

A company that has basic IT tends to not have to focus on the technology, which for some companies is a good thing. These companies traditionally do use technology, but don’t get into using data for business purposes very often. They will more likely than not look to outsource a lot of their computing, as services are not only affordable, they are flexible and don’t require long-term investments. They also don’t require much in the way of maintenance as much of the computing will be maintained by the provider. 

Minimal Level Investment

Some companies think that technology spending is a waste of core capital. This is understandable for small businesses that don’t really rely on IT-based insights or computers to make their business viable. The thing is, technology is important to their customers, and with business there will be a certain exchange of data. Businesses that refuse to make IT spending a priority are at risk of non-compliance to regulations and even reputational damage since the lion’s share of their customers use technology for their company interactions. 

How do you approach your company’s IT spending? If you would like help ascertaining how to stretch your IT budget so that you can get the technology, skills, and support you need to grow your business effectively, give the IT professionals at Preferred a call today at 708-781-7110.