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Technology Budgeting
Shift Happens: A guide to being prepared
for the technology that would fuel your business.
Remember all the hype when Windows 95 was released? It was a revolution.
Everything about computers changed with that Microsoft release back in 1995. The
look, security, connectivity, graphics and layouts – absolutely everything
looked and felt completely different. But that was more than 8 years ago. And at
the speed technology moves, that’s the Stone Age for computers.
Okay, so you moved to Windows 98. Now you are operating on a technology from 5
years ago. So what’s the big deal? If your car was a 1998 model it could still
get you where you want to go, right? But what if the air conditioning goes out
on that car? Freon is no longer an option. So how long can you get by with that
1998 computer system?
That’s the new reality of living in a world powered by technology. Windows 95
and 98 changed everything, but by today’s standards are no longer a safe
operating system. Its designer and publisher, Microsoft, doesn’t support it any
more. Neither does Microsoft Great Plains or Best MAS 90 • MAS 200. That means
when you have trouble, support is a challenge. In its place, Windows 2000 and XP
are the systems of choice, offering far better security, speed and flexibility
to connect programs together. In short, more efficiency.
The problem, of course, is that trying to plan and budget for keeping up with
technology can be expensive. Nobody really knows what the next standard will be.
It was just 20 years ago that Bill Gates – before there was a Microsoft – said
he could never see a need for more than 64k (kilobytes) on a computer. Now
computers come standard with 80 gig hard drives (that’s 640,000,000 kilobytes).
It always changes. But budgeting for technology must be a part of that.
Sound depressing? It isn’t, if you factor in features and benefits. Consider the
case of a healthcare company in Alabama that recently found its old UNIX
proprietary system wasn’t going to meet the new Federal HIPAA (Health Insurance
Portability Accountability Act) requirement standards. In the process of
upgrading systems, the company installed a new Windows 2003 server with Exchange
for email processing. Suddenly it had unprecedented connectivity to its ten
locations. Now, when a patient goes to another location, there’s no need to call
and transfer patient information. That’s done electronically with a receipt
order. Patient satisfaction is way up. Employee satisfaction also improved
because they now have greater access. Eventually, all locations will be linked
using a business management system that will allow for cost-tracking by
individual location, purchase order processing for supplies and a reduction in
administrative paperwork. The investment was great but so has been the payback.
Is it complicated? Hardly, because there is a plan built around the need to know
what isn’t known today, i.e., what the future of technology holds. That
healthcare provider is building around technology that will be easily adaptable,
in this case Microsoft SQL for billing and business management. They also are
preparing financially by determining what costs will be associated with this
change, such as maintenance, hardware requirements (replacing systems every
couple of years), and the general operating requirements of a growing
organization including technical support, repairs, training, upgrades and
Internet accessibility.
Sound unrealistic? Maybe, but it is achievable, even for small organizations
that need to remain technologically competitive. In today’s environment,
technology budgeting also means process evaluation – how you do something today
needs to be reviewed in the light of coming technology to identify how you can
streamline more or improve efficiencies. As you look forward, here are some
basic questions to help fuel the process:
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What is your risk from using outdated
technology? What would be the impact on your company if there was a breach
in your systems? What would happen if your information were released to the
public? Are you prepared with an emergency disaster plan?
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How much time are you currently taking to
prepare for outside audits? Are you spending more time preparing for the
audit then actually having the audit?
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What security issues need to be addressed to
safeguard your organization’s information? Do you have proper updated
firewalls and virus protection?
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How are you reviewing and planning for upgrades
to your operating system, front office systems and accounting systems?
When it’s time to invest in technology be sure to maximize the investment by
being open to considering new ways to do old jobs. The technology provides the
ideal opportunity to tackle that challenge.
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