In the digital age, it is difficult to separate business from technology. Technological revolution has been contributing towards increasing business efficiency and eliminating some core challenges. With the right systems in place, businesses are able to manage time, money, and resources more efficiently. However, business owners have always been curious and speculative about any piece of technology until it becomes a mainstream technology. There are infinite examples of technological innovations that didn’t drive attention initially but, later on, turned out to be ground-breaking innovations. 

Business owners’ reserved attitude towards technology keeps them away from leveraging its true potential and closes their doors to new opportunities. It is necessary that business owners overcome their fear and concerns related to technology to see growth and profit in this highly competitive business world. 

Let’s discover some top reasons that prohibit business owners from investing in technology and what repercussions they have to deal with.     

Top Reasons for Under-investing In Technology – Technophobia

  • Don’t have a budget for it:  It is a common reason cited by business organizations for not investing in technology. They assume that implementing technology requires infrastructure and network systems that may demand huge investment. But it is a misconception that all technologies are expensive and only large enterprises can afford them. For instance, many organizations see software solutions as a costly affair, but if users search online or visit a review and rating website, they can find a list of software solutions that fit into their budget. 

By prioritizing their needs, business organizations can surely find budget-friendly tools. Besides that, their concerns about building and maintaining IT infrastructure can be overcome by investing in cloud technology. It offloads the infrastructure and maintenance costs.

  • Fear of failure: Many organizations operate their unit in the conventional style because they fear updating business operations with the latest technology could be risky. Due to a lack of awareness, they rely more on manual work than technology. They have a fear of failure and refrain from adopting new technology. If technology is not a subject area, then business organizations can stay in contact with experts and take their guidance for its smooth integration. But before implementing, users should check how technology adds value to the business or solves underlying issues.
  • Unnecessary investment: Many business owners see technology as an additional expense and think that technology can make their business more complicated. Companies can bear some costs during the initial implementation of the technology, but in the long haul, it helps to increase operational efficiency. It can actually help businesses to save costs on labor and provide greater transparency into business operations.
  • Fear of Lack of Technical Expertise:  Although business organizations are shifting towards automation and robotics to make business processes fast, many companies still find it challenging to implement due to a lack of technical expertise. Even if companies want to implement advanced technology, they struggle to find employees with unique skills. So fear of lack of technical expertise is one of the main reasons companies hesitate to adopt the technology.
  • Security concerns:  Business organizations’ main concern around technology adoption is security.  Many believe it is an easy target for hackers and can steal their confidential information.  A decade ago or so, this fear was pretty understood, but today with the advancement in security protocols and technologies, it is difficult to intrude into anybody’s system or network.

The repercussion of under-investing technology

  • Reduced profitability:  Business organizations that are organized and facilitate smooth collaboration between team members can enhance their business profit. A business using technology can establish clear communication on the tasks or projects in hand and reduce the failure rate. Without the right technology in place, organizations cannot have real-time visibility on business performance, cannot take informed decisions, and cannot foresee the future. There is a high risk that businesses can deviate from their original path or goal if they have less visibility over the business. Eventually, the business can end up with reduced profitability.
  • High operation costs:  For most organizations, reduction in operating costs is the prime objective. Various costs associated with running a business involve direct cost, capital cost, fixed cost, labor cost, production cost, etc. Technology can bring down costs associated with all business processes without impacting their performance. Whether it is hiring an employee, documentation, or managing a team remotely, technology can assist in managing them efficiently and reduce overhead costs. Organizations that have a narrow perspective towards technology can see themselves running the business with low-profit margins and short of funds to run businesses.
  • Reduce operational efficiency/ productivity:  Technology enables us to do more with less. Technology such as automation and RPA (robotic process automation) replace manual tasks and increase workplace productivity. Next-generation organizations have adopted automation in their units and are leveraging enormous benefits. It has fast-paced production, reduced error rate, and improved quality. With the high demand for goods and the pressure to meet these demands, technology is a critical factor.

Organizations not investing in technology can find themselves left behind. Businesses can strangle themselves in fragmented processes, an unorganized workforce, and complex business structures. Regardless of the industry type, the technology has a greater impact on business functioning and its overall performance. Companies that are reluctant towards technologies can see reduced operational efficiency.

  • Poor business decisions: Business is all about making the right decisions and scaling them up.  Whether it is finding the right partner for the start-ups or expanding an already established company into a global enterprise, every aspect of business boils down to the business owner’s decision.  Technologies such as big data and business intelligence have become advanced in data mining so that they can give accurate insights about the business.  It enhances business owners’ decisions and enables them to gauge business from multiple dimensions.  It puts them in a position such that the error of making the wrong decision nearly becomes negligible.  Business owners that miss harnessing the benefits of big data and business intelligence are at more risk of making poor decisions and making a successful business model.  

Conclusion

The ability to decipher deeper business value and achieve operational excellence can differentiate a successful business. It means organizations aiming for success should focus on attributes such as high productivity, better team collaboration, and increased revenue. 

In the rapidly changing business world, enhancing business performance with the available resources and budget could be a daunting task. Investing in best-in-class technologies can solve these challenges for business owners. Technology can be a true ally and facilitator for growth opportunities when business owners implement it throughout the organization.

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