Friday, August 8, 2008

The first priority for IT

Most businesses look to technology to solve a business problem. After all, why buy software if it doesn't do that?

But if the infrastructure (IT highways, bridges, etc.) are not stable and capable of supporting the new functions, failure is often the result. This shows up as increased costs, poor response time, delayed projects, etc.

When you build a new building, you have to ensure that the foundation will support the structure that you are building. A shed needs less of a foundation than a house; a house needs less that a tower.

Your business software has the same kinds of needs. Unfortunately, many software suppliers or even outsourcing IT suppliers won't tell you this. They may be afraid to lose the contract if the cost is too high. They may not understand the needs of the software. Most software suppliers tell you the minimum that is needed to run their software. That doesn't mean that it will run well. This minimum doesn't consider your other needs. It is an isolated view.

These are some of the reasons why costs escalate. The needs were there, but nobody looked at it, or they didn't understand it, or they were afraid to mention it until it was obvious it was necessary. This happens with internal staff as well as external suppliers.

Most small businesses look at the cost side of the equation and don't want to spend more than they have to. This is understandable. It is also a mistake.

Check out my article on "The cost of Buying Business software".

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