Technological Investments : A 21st Century Panacea?
Amidst a constantly evolving business landscape and the wave of digital disruption, it could be almost guaranteed that businesses that do not adapt would be swept away by the tides of change.
To generate profit is a common goal for businesses. However, the discussion revolves around the question how. How can businesses create interesting campaigns and promotions? How can they attract customers? How can new technology be invested to increase profit? By technology definition does not limited to only physical machinery and production methods, but also refers to digital applications and investments that are intangible and less invisible to the eye.
New technology means nothing if it cannot be implemented to create value. Moreover, those unproductive investments efforts could create unnecessary waste; both tangible and intangible. Including the opportunity cost of time that could be spent on other productive projects rather than spending those on laboring working hours of code that would not be used.
Nowadays, investment in technology has been commonly used as a panacea hoping that companies that adopt the fastest and latest technology would magically become market leaders. However, technology, like all investments, could be beneficial or could be a futile cost to the company. Investment in technology, no matter new or fast, could be futile if used in the wrong way or if users do not have the knowledge to deploy and utilize those technology invested into efficient use. Before diving down to invest in something, companies should first ask themselves: what are they investing for? How long will their investment last? And how will this affect other actions in the years to come?
Therefore, technological investments should be viewed as a key strategy to business development and value creation rather than merely a function of everyday business operations.
Date : 17/02/2020