Why Do You Need An IT Strategy? - Bailey & Associates

Why Do You Need An IT Strategy?

17 JUNE 2019
Why Do You Need An IT Strategy?
Sam Maley

A wise man once said, “A goal without a plan is just a wish.” The relevance of this quote has stood the test of time and is more relevant in today’s business world than it has ever been. Not implementing an IT strategy is also a choice, as you can’t achieve goals if you never set them.

With every business looking for a gap to gain a competitive advantage over others, the need for an IT strategy has never been more critical.

By using an IT strategy, you are well on your way to actively improving your businesses' productivity and efficiency. Following the plan will make it easier to accomplish the businesses' goals.

How Can an IT Strategy Help Your Business?

1. Increase Innovations.

While the business world is continually changing, the ability of your business to come up with new and better products will significantly determine how you rank against your competitors.
Implementing an IT strategy enforces innovation and invention of new products and services for the company to reach more customers and increase your presence in the market.

Nokia, one of the world's largest cell phone manufacturer, is one such beneficiary. Having started as a pulp and paper company, the company diversified into the rubber industry and soon into electronics.
Its involvement in electronics made them invest in their mobile communications. This diversification has allowed them to offer more products and hence reach more customers.

2. Increase Profitability

Profitability is typically the ultimate goal of your business. You should, therefore, have a sound strategy to increase your profitability; this could be in the form of investing in a good IT strategy.
An IT strategy, though costly to implement, has a relatively fast Return on Investment (RoI) and will thus boost your profits by more than double.

Netflix, now one of the largest online streaming companies, started as a DVD rental home delivery service. However, they soon saw an opportunity for online streaming and began a significant investment in their streaming content. Netflix was not immediately profitable due to its huge investment in content, with the brand even producing its own shows exclusively for the online streaming service.

3. Keep up with Change

With the advancement in technology, the world is quickly changing, and people have the constant need to get the latest products or services. With a sound IT strategy, you will avoid offering obsolete services and will thus facilitate customer satisfaction.

The New York Times is a perfect example of keeping up with change. After smartphones hit the market, the volume of consumers purchasing newspapers declined and The New York Times, alongside many other newspapers have introduced online services, with different packages available for how consumers prefer to read their stories.

Without being aware of the changing market and making the investment into new digital technology in the form of making the newspaper available online, The New York Times could easily have been left behind by its competitors and made obsolete from transitioning consumer habits relating to technology.

4. Keep up with your competitors

For you to keep up with your competitors, you need an IT strategy. Without it, you will lose your clients and customers, reduce your profitability, and sooner than later, your competitors will easily cut you off the market.

Walmart is one company that implements this strategy. With online giant Amazon expanding into the online grocery market with their Prime service, Walmart took the opportunity to improve their online presence and even built an app. Without making such changes and having the technological means to do so, Walmart could have easily been left behind by Amazon.

5. Improve customer experience

A good IT strategy should be centered on ensuring that your customers have a fantastic experience. This means that the strategy will require you to take customer feedbacks and work on your customer service delivery.

Amazon has worked on this strategy by allowing users to buy almost anything online, and it's delivered to their address. It also gives the customer a variety of products to choose from with a filter option to find exactly what they love.

In today’s digital world, making any platform where a consumer interacts with your brand as user friendly as possible Is extremely important. Today’s consumers are reported to be less brand loyal than in previous years, meaning that the ease of experience of your company’s website, apps or systems can have a huge impact on whether a customer will choose your brand, or your competitors.

Conclusion

With the current trend of the business market and the fast paced nature of technology, implementing an IT Strategy certainly has its advantages as highlighted in this article.

We hope this article has offered good insight into the benefits of implementing an IT Strategy for your business. If you have any IT related questions, or perhaps want some support in implementing an IT Strategy for your business, our flexible approach to IT Strategy could be something worth considering. Whether it’s just a two day IT Audit Workshop to help you generate the ideas or if you’d rather have an IT Consultant on site at your business from as little as two days per month to three days per week, we can help.

 

Why not start with an IT Audit?
Book an IT Audit with one of our experienced Associates to find out how effective your current IT Strategy is.