The Utility View – April 2007
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How to Address Technology Over-Spending and
Under-Utilization
For most small and medium-sized businesses (SMB) technology has been traditionally viewed as a cost of doing business or even a necessary evil to doing business. Over the years, the proliferation of the Internet has provided businesses a seemingly limitless means to access, communicate and collaborate corporate and client data. This has now resulted in most organizations today being increasingly more reliant on technology to operate, communicate and manage their business effectively.
Unfortunately, many businesses today still view technology and related services similarly to insurance – they don’t need it until something bad happens! Why do most people view technology from this perspective? What should organizations do to change this problematic view of such a key enabler to their business, not to mention one of their largest monthly expenditures?
For years the technology supply chain has been influenced by a handful of large software and hardware vendors whose sole focus was (and still is) technology innovation. They have basically over-marketed themselves and their wares to businesses and consumers on the premise that “you need our latest and greatest” technology to make you more productive, efficient, save costs, etc. Unfortunately, this has left many businesses in a position today where the two major issues with respect to technology are:
- Over-spending – the fact the average SMB spends $360 per user per month on technology for an industry total of $400 billion annually.
- Under-utilization – the fact that only 15% of this investment in technology is actually utilized by these businesses.
Most business owners and decision-makers have purchased technology “in a vacuum” without really understanding the impact these investments has on their business. Poorly conceived technology procurement and service plans can, in fact, negatively impact business productivity. While large enterprises can address this through budget and headcount, small and medium-sized businesses have been left in the untenable situation of looking for answers to questions they really don’t understand. The result – a do more with less approach to technology or alternatively the “pay and pray” break-fix outsource model where companies pay for technology time rather than uptime.
The Utility Approach
To help businesses better understand technology, The Utility Company recently launched a free business-technology online assessment service called the Utility Meter Reading. The Utility Meter Reading assesses a business in four categories: spending, operations, communications and management. The online assessment available at www.theutilitycompany.com examines these key areas and provides a report on how you are faring in terms of your current technology spending versus its effectiveness in meeting your business objectives in key areas such as sales, marketing, customer service, HR and finance.
Utility Meter Reading Business-Technology Assessment
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Communications Meter - provides organizations with insight into how they are leveraging technology, particularly the Web, to communicate their business to key stakeholders, including customers, prospects, media, shareholders and potential employees.
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Management Meter - provides an overview of how an organization leverages technology to manage their business and the flow of information. Although technology continues to be adopted for business management, the ability to access data across an organization through an integrated system remains elusive.
Utility provides businesses a 360 degree view on spending and utilization in the five major areas of technology: network/desktop, business applications, Web/Internet, copier/printer and telecommunications. We then tailor a technology service plan specific to your requirements and budget in a monthly user-based model.
SMB Technology Pie
If nothing else, this new approach provides businesses with an easy-to-use reference guide to develop a technology budget and plan focused on addressing the actual requirements of your business. Any technology vendor or provider that does not provide you with the ability to self-assess and self-identify your technology needs from a business perspective is like all the rest – simply trying to sell you something that you likely don’t need!
About The Utility View™
The Utility View (TUV) is a monthly thought paper series on current trends in the managed services industry and the emerging utility services market. TUV Vision articles specifically address the service provider community to keep them “in the know” on the channel’s titanic shift toward a more service-centric model. TUV Insight provides small and medium businesses in-depth information on how to better understand and utilize technology and actually make it work for their business. Questions on any of our thoughts and opinions should be directed to tuv@theutilitycompany.com. To receive The Utility View alert please register on our Website.
About The Utility Company™
The Utility Company is the leading provider of information technology as a utility to small and medium-sized businesses, delivering the required hardware, software and service for a monthly fee per user. Our Connected Office™ service suite empowers people to properly leverage technology to operate, communicate and manage their business more effectively to increase productivity, performance and ultimately profit. Our customers are supported by the Utility Service Network delivering on-site service and business-technology consulting across North America – technology sales, professionals and service organizations can review the Beyond Managed Services™ franchise opportunity on our website. Learn how to make technology work for your business today at www.theutilitycompany.com
Copyright
Copyright © 2007 The Utility Company.
All rights reserved. This document contains information intended for the exclusive use of Utility personnel, strategic partners and potential investors. The information herein is restricted in use and is strictly confidential and subject to change without notice. No part of this document may be altered, reproduced, or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of The Utility Company.
The Utility Company™, Technology-as-a-Service™, Connected Office™ and Beyond Managed Services™ are trademarks or registered trademarks, of The Utility Company Ltd. ™ signifies a trademark and ® a registered trademark of The Utility Company Ltd. All other names and trademarks are the property of their respective holders.
