Tech Tools: New! Cool! Unnecessary?

 

 

By Ricardo Harvin
E-mail Questions for Tech Tools to techtools@uschamber.com.

 

Hype can be a powerful thing, and it seems that every time a new technology is introduced, the marketing blitz drives some people into a buying frenzy. Even those of us who aren't inclined to buy the newest and coolest will sometimes find ourselves paying for something that we really don't need. The question is, How do you manage to keep current with technology without paying to essentially be part of some company's test group?

 

Here are three criteria to help you decide which purchases make the most sense for your business:

 

Evaluate Business Needs
Take an inventory of the technology your company currently uses. Products and technologies that are near the end of their useful lives-especially those with high maintenance costs and weakening performance-may be good candidates for updating or replacing. Working with outdated equipment or sticking with inefficient processes can be expensive. Performing regular reviews of your operations (at least once a year) can help you identify areas where changing or adding technology can increase productivity.

 

Measure Product Performance
When you're one of the first to use something, you don't have the benefit of learning from other people's experiences. Usually it's best to wait until the widespread use of a product produces sufficient evidence of its performance. The longer the product is on the market, the easier it is to compare its performance with the competition and determine whether its marketing claims bear resemblance to reality. The Web can be a good source for user reviews of a product.

 

Another benefit of waiting is that many technology products end up costing considerably less a year or two after they're initially released.

 

Calculate Return on Investment
If a product meets your business needs and lives up to its marketing, the next step is to determine its cost effectiveness. Compare the purchase, lease, or licensing price of a product-plus any ongoing maintenance or usage fees or update costs-with the increased productivity and profits you expect it to generate. It's difficult to justify a purchase if the product's long-term costs outweigh the boost it delivers to your bottom line. Don't let a product's initial appeal cloud your purchase decision-making process. Limit your purchases to those products that make the most sense for your business and return the best bang for the buck. Otherwise, you may just be adding to the collection of stuff collecting dust in your closet.