In times of economic uncertainty, businesses reduce budgets in an effort to ensure their long term survival, saving a little ‘business fat’ for a long, cold and potentially unknown economic winter. When IT inevitably hear calls from leadership to reduce, reuse and rethink budgets and to “do more with less”, this doesn’t have to be the dire situation it seems to be. It could, in fact, be an opportunity to do things a little differently.
By closely aligning IT strategies with business goals, companies can make more effective technology investments and enhance overall business performance. A well-aligned IT strategy can provide a competitive advantage and by focusing on business objectives, technology investments are purposeful and impactful.
IT leaders play a crucial role in this process – guiding technology initiatives to align with the evolving needs of the business. A well-structured IT strategy also serves as a framework for managing these initiatives within the department, highlighting its value to the broader organisation.
A lesson in forced change of business processes
Covid surprised everyone, and many businesses that were walking a tight profitability line failed. Others saw major work programmes halted, conserving cash flow to brace for a dramatic reduction in demand.
Simultaneously (and somewhat paradoxically), Covid also saw some businesses dramatically modernise. However, these businesses modernised because they had to, not because they wanted to. In an effort to keep trading, they performed the changes they should have made years ago and in doing so, survived.
A robust IT strategy became essential for those adapting to the new normal.
Smart IT strategy step one: Optimise and modernise for an effective IT strategy
With growing predictions of an economic downturn, businesses should get in front, optimise existing spend and repurpose budgets for necessary modernisation initiatives. Don’t wait for the calls to cut budgets, do it now, and guarantee the most critical of initiatives continue. Just because there is a downturn, doesn’t mean you should stop activities you thought necessary mere weeks before. I feel this is limited thinking and without fail, whenever I have spoken to business leaders following significant cuts within their business in response to a downturn, they always regret that they cut their more innovative arms of the business.
An innovative information technology strategy
Whilst I can appreciate that there are times which call for drastic cuts in spending and swift changes in behaviour, we should be far, far more reluctant to cut our innovation engines when it is innovation that will ultimately enable the business to emerge different and better from a challenging time.
I would instead challenge the business that during a time of challenge is exactly the time to invest in tools that reduce friction within the organisation or increase the effectiveness of our teams. In these moments I’ll be pushing for self-service tools (that reduce the burden on IT for day to day management) or advocating for activities that encourage optimisation and anywhere access.
After all, the more we can empower the individual to do more without restriction on where they perform the task, the greater that person’s value is to the company and the less their reliance on other people or resources to perform their function.
Innovation is a key part of a successful IT strategy, fostering long-term growth and operational efficiency.
Smart IT strategy step two: Integrate AI
I stand firm in my bullish position around AI and that even in the midst of a recession, we should be investing in tools such as AI that have the possibility of dramatically reducing our cost base, or increasing our effectiveness. It is exactly in the lead up to challenging times that I believe is the best time to implement more powerful tools that could aid the business.
AI has the potential to dramatically upset the status quo and you want your business to be the beneficiary of this upset. However, AI takes time, requiring a fastidious and steady upgrade of services and data sources needed in order to be AI-ready, including the identification of use cases throughout the business.
Where AI fits with your overall business strategy
Adoption takes time but once you start down this path you’ll start seeing ideal AI use cases everywhere. All of these build a cumulative business case of value through the reduction of manual input, increase in data accuracy and automation of tasks.
A solid IT strategy is essential to ensure that investments in AI align with business goals and drive value. Key elements such as understanding business objectives, strategy development, implementation, and continuous evaluation are crucial for success.
Support your IT team with a robust strategy
Economic downturn doesn’t mean IT strategies have to halt. Instead, it’s a klaxon call to be better, to do more with less and to use technology to our ultimate advantage. If we can see trouble on the horizon, now is the right time to take action to dramatically evolve before we are forced to by circumstance. Circumstance is never as kind as when you choose and set the path yourself.
If you would like to discuss how to discuss what a smart IT strategy looks like for your business, feel free to book in a discovery call with The Azured Team here.
