Why Didn't You Purchase a Technology?

 

Why Didn't You Purchase a Technology?

On the Financial Planning website, I just finished reading Joel Bruckenstein's 2009 Software and Technology Survey (read the article). It's a fantastic piece, and Joel went to great lengths to analyze what technologies people are and aren't adopting. This story prompted a thought in my head... Why aren't people buying a certain piece of technology? I have some theories as a vendor of efficiency solutions. Whether you're a technologist like myself, an IT expert, or just a buyer of new technology, you'd think that saving people time and money would be a compelling motivation for them to want to utilize it.

They don't, however. What is the reason for this? Ignorance, return on investment (ROI), and a lack of realized value are the three main reasons I encounter that apply to everyone, including myself.

Ignorance:

Let's face it: it's far easier to ignore an issue than to try to address it. Imagine halting a process in the middle of it to look for a better solution every time you run across an inefficiency, a lack of integration, a missing functionality, and so on. You'd never get things done on time. When you're in a hurry and just want to finish a task, the last thing you want to do is stop and look for a better way. As a result, we remain unaware of superior solutions, services, or features within our current solutions. One of the greatest ways to handle this problem is to set together a technology plan, as Joel suggests.

A strong technology strategy should begin with an overview of your operations and processes, identification of existing technologies that service each process point, and identification of who on your team is responsible for each process step. Identify the process phases where you either don't have a technological solution at all or your current solution is old or insufficient using the overview. Knowing which process phases require your attention will make selecting the technology that best fits your process flow much easier. The final step in creating a basic technology plan is to conduct research and create a budget.

How To Assess ROI?

When it comes to purchasing technology, there is a common misunderstanding known as return on investment (ROI). Every salesperson hopes that if they can demonstrate you an extremely good return on investment, you'll hand them your money. That isn't exactly how it works. You intuitively understand that your return on investment will be affected by your actual use of the solution, current costs without the new solution, and whether or not you and your users will actually adopt it.

A better way to determine whether a solution will provide a return on investment is to determine whether you can live without it entirely. Of course, you must factor in the cost; spending $5,000 to save $500 is not a good deal. Spending $5,000, on the other hand, may make sense if the solution will raise your revenue by $10,000 while saving you $500. If you feel you can't live without the solution, disregard the ROI figures since the solution will be worthwhile if your budget allows it.

If you can live without the solution, consider whether the new technology will help you grow, increase revenue, improve your image, or provide other intangible benefits that are difficult to quantify in an ROI analysis.

Value - Perceived or Realized?

A product can be sold in two ways: as a perception of value or as a realization of value. During the sales and research process, a person's perception of value is developed. Inquiring about other people's experiences with the product, reading about the most popular solutions, and hearing anecdotal success stories can all help you determine the solution's worth. Then you buy it and hope it lives up to your expectations. The alternative option is to assess value prior to making a purchase. When you can see the solution in action and see the effects for yourself, you may usually realize value during a free trial.

For example, with our end-user product, Quik! Forms Library, you may test the fully-featured software for 14 days for free, and you'll discover the value of the solution and know whether it's right for you within the first few minutes of making forms.

A lack of value, whether perceived or realized, is the main reason you didn't acquire or use technology. To use technology to benefit your business, you must first solve the challenge of determining the value of a specific solution. Obviously, the person or website advising you to look at technology could do a better job of conveying value, but we're talking about growing your business, so the onus is on you to identify value in technology. Take advantage of the free trial and put the solution to the test. Interact with other users. Check out the customer testimonials and case studies. Find the value and you'll understand what Joel means when he wonders, "What are you waiting for?"