When should one invest in technology?

Nowadays, investing in technology is no longer an option, but probably the main option in any company. After all, when should you invest in technology?

1. When you want to reduce costs

One of the most important factors for investing in technology is undoubtedly wanting to reduce your company's costs. In fact, if you want to make your work centre more operational, investing in technology is a great option. In the case of ERPs, they automate most operations and offer a high return on investment. These tools can get the information from each of the company's departments, and in an integrated way, get them working together. Thus, it is possible to obtain a more precise horizon to correct possible failures or inefficiencies that may occur.

2. Production control

It is also very important to invest in technology when looking to gain greater control in production. This is another point where a technology like ERP can help. Therefore, companies should invest in technology that allows them to know first-hand the most relevant information about their business, allowing them to make the best decisions and becoming more efficient.

3. Investing in technology to retain human capital

A company that is excessively neglectful or obsolete in the technologies available to its employees does not stimulate, attract or retain highly qualified professionals. The truth is that the technologies made available by companies to their employees retain professionals. And the best thing is that this action has a double effect: on one hand, it allows workers to make the most of their performance due to new tools and possibilities. On the other hand, it makes them feel stimulated to receive specific training in their area. Both points result, after all, in a better performance of the workers and, in the medium and long term, in an increase in their value and the competitiveness of your company.

4. Obtaining competitive advantages

As could not be otherwise, investing in technology is one of the most efficient ways to gain competitive advantages over our competitors. It is also one of the most affordable due to the great scalability it offers. Specifically, it is possible in the medium and long term to obtain a great return on our investment. Therefore, technologies such as IoT, software dedicated to time control or MRPI and MRP II in the case of the manufacturing sector, can help, in a very significant way, to obtain a clearly high advantage over our competitors and within our sector.

5. When the available technology is obsolete

This is probably the most well-known and, unfortunately, the most common factor among businesses. The truth is that many companies wait until their equipment is completely outdated and obsolete before making the replacement. Worse still, are the cases where they wait until they are completely useless. This option is not recommended: technology should always be a tool to take advantage of available opportunities.

If your business equipment or your technology level is completely outdated, it is more than evident that it is a good time to invest in technology. It will always be necessary to do so in the hands of professionals who can guarantee the necessary and most relevant training to make the most of the technologies we are introducing.

6. Investing in technology to collaborate with other companies

Nowadays, collaboration between companies working in synergy is essential. However, it should be noted that investing in technology is almost mandatory to take this step. Indeed, it is due to technology that we can ensure that this cohesion between two companies takes place in a satisfactory manner. If it is already complex to manage all the information and processes of a company, when there are two that are in collaboration and intend to work in a coordinated way, it can become even more difficult.

Here too, ERP is again a fundamental tool. It allows all the information related to both companies to be centralised and for them to work as one. This way, delivery times, the amount of stock available, requirements at all times, etc. can be adjusted. This means that joint plans can be developed for greater performance and efficiency. A connection that today is only possible (and desirable) through technology. In addition, it allows much more sophisticated and general planning to be developed, achieving greater efficiency in all processes. A benefit that will be mutual.

SEIDOR specialises in supporting companies to invest in the best technology to get the most value out of it. Consult us to clarify all your questions in this area.