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Why technology fails

The top mistakes that business managers and owners make, which cause technology projects to fail...

Everyone fears failure. Our human condition has planted the notion that failure means we have been stupid, lazy, and - in the business place - failure often makes us fear losing our paycheck or our business.

The greatest among us know that failure is the means to education: with each "failure" we learn valuable information about the problem we are trying to solve. Often, by learning what does not work, we can come closer to knowing what does work.

Technology projects fail because business management and/or ownership is afraid of making the wrong choice. The secret is simple: you will always be wrong with technology.

YOU WILL ALWAYS BE WRONG.

In technology, what is good practice today is nearly obsolete tomorrow. Resist the temptation to try and "get it right" when it comes to technology. Forget the subjective notion of "right" - and simply work on solving the problem. There are hundreds of ways to solve the same problem with technology - there is no right answer and no wrong answer - only the answer that solves your problem.

Realize that most technology projects "fail" because they don't actually solve the problem. Often, technology projects are designed to fix symptoms.

For example, you can have the worlds most expensive system to scan and save documents. But what if the problem isn't saving the documents - what if what you're trying to eliminate paper? Scanning solutions assume paper - something to scan. The real problem is the fact that paper exists in the first place: design paper forms out of your workflow and you don't need that expensive scanning system.

Think about the business problem or process you have: don't think about technology. Ask questions such as, "Why do we do things this way?" "Is there a better way to do this process?" Once you ask those questions, it is much easier to use technology to solve those problems. Often, technology complicates our lives because we use technology to solve symptoms - not problems.

Technology smarts

Learn why smart business owners and managemers never make decisions about technology...

Smart business owners and managers know their business well: they understand their industry, their product, trends, customers, vendors, and their "trade." That's evidenced by the fact that they are in business and successful - there would be no business nor success if they did not know their "stuff" when it came to their business.

Savvy business people have to spend a lot of time learning their industry and practicing their trade. This means that other tasks: accounting, legal, human resources, operations, etc. have to be entrusted to other people or departments.

Smart managers don't know anything about computers. While industries - manufacturing, logistics, production, advertising - are stable industries, computers and technology are unstable. Technology changes far too fast for the successful, smart business manager to stay on top of the trends.

To save time, money, and effort, information technology is outsourced by smart owners and smart managers. Just like legal, accounting, and HR, there are too many intricacies and too many changes in the technology field to make technology an in-house affair.

The cost of bidding

The story of the purchasing department that wasted the technology budget...

Once, there was a company that needed to use technology to make more money, sell faster, deliver product more timely, and close the billing cycle to generate more cash flow.

However, this company was adamant about "controlling" the technology purchasing process. The company used the same methods to buy technology as they used to buy product, equipment, hire people, and ensure that they didn't spend too much money.

As such, quotes from various companies were obtained. Since the business owners and managers really don't understand technology, they don't really know what to ask for. Savvy sales people from technology companies know when you don't understand, and they'll sell you lots of things to pad their commissions.

Our company thought they could control the process of purchasing technology like everything else, and they forgot one thing: they don't understand technology. It is easy to assume that every business process can be solved with the same tools, but that's what leads to failure. Solving technology problems requires a technical savvy that business owners, managers, and staff do not have.

So while that company went through the confusing and time-wasting process of filtering bids and having meetings, they spent hundreds of thousands of dollars is lost people-time. Plus, they lost the benefit of that new technology. By waiting to get the lowest price, they also failed to get any benefit, likely negating any ROI that the project would provide.

The bottom line is that if you don't live and breath technology, don't make technology decisions. Hiring a consulting firm for their time will keep you from wasting your valuable time and money.