Evolution of Technology as a Business Growth Strategy

Technology has had a significant influence on the financial services industry, fundamentally altering how we spend and manage our money, as well as how we budget. This is because technology today is a significant business growth strategy.

What used to require a trip to the bank can now be accomplished practically anywhere with a few clicks on your mobile device. We've progressed from using checkbooks on a daily basis to a nearly cashless culture today. While these developments have made handling our money more efficient, they have also introduced some new issues that we must be aware of.

While technology has given us greater control over our financial lives—online shopping, online banking, mobile payments and automated transfers - it may also be altering our conceptions of and values of money.

Growing research demonstrates that technology is influencing financial decision-making, particularly when combined with deeply ingrained financial attitudes and behavioral biases to provide a strong business growth strategy.

Evolution of Money as a Social Technology of Accounts

Technology expenditures are becoming a larger portion of company spending, and many stakeholders demand investments be linked with business growth strategy. An investment strategy is increasingly dependent on current technical capabilities, corporate strategy, and the competitive landscape, in addition to conventional industry standards. Optimising IT expenditures has become a primary goal for CIOs and their stakeholders as their mandates shift from value preservation to value generation.

Over the last three decades, companies have invested in supporting and automating back-end systems and technologies; as the maintenance and upkeep of that infrastructure got more complicated, organizations frequently committed a large portion of the IT budget to business operations. Technology is now frequently interwoven into every company's activities and can affect earnings, growth, performance, and competitive advantage - yet technology investments vary substantially among industries and, in some cases, even sectors within the same industry.

Shifting Budget Allocations

CIOs must reconsider budget allocations across all categories in order to make the greatest use of IT expenditures in support of business objectives. Adopting the Cloud and embracing Agile and DevOps is no longer an option; it is a necessity. This necessitates a fundamental shift in the IT operating model and cost structures as well as a shift away from the traditional distinction between operational and capital expenses in order to track and report investment opportunities throughout business operations, iterative business change and business innovation.

The migration of apps and infrastructure to the cloud during the previous decade has had a significant influence on operational expenditure reduction. Streamlining company processes may free up budget money for change and innovation projects, allowing CIOs to have an influence on top-line growth. Over the course of three years, the CIO of one consumer products business lowered IT operational expenditures by more than $150 million. His audacious cost-cutting efforts boosted his reputation among company executives, and he was able to persuade them to put half of the money toward modernization and innovation programs.

When it comes to interacting with customers, future clients, other businesses and the entire globe, small company owners and startup dreamers understand the value of technology. Though incorporating deeper tech than Facebook, Instagram, or LinkedIn on a small company budget may appear daunting, it is achievable. Historically, investing in new technology has proven critical to the success of any firm, regardless of size or structure.

With my experience in different domains, I would like to quote a couple of reasons as to why technology and tech investments are value for money -

1. Technology Is Worth The (Low) Overhead 

First and foremost, it is critical to realize that technology deployment does not have to be costly. The study indicates that office space costs on average $2 per hour, a "knowledge worker" costs around $60 per hour, and technology such as a high-end workstation (a more enhanced computer that allows the business to use high-tech alternatives without lag or other technical problems) or new software growth with a pro costs much less, at only $0.20 per hour.

2. Software Development Can Help Businesses

Technology is a good investment for business growth strategy, particularly in the IT business. Small firms now have access to development, business software, applications, and other items that are superior to those employed by large enterprises a few decades ago. 

3. Technology Can Aid in Creating Better Customer Interactions

They are popular among the younger generation, with 60% of millennials having communicated with a chatbot at least once. In fact, 70% of those millennials were pleased with their engagement. It is not surprising, then, that the worldwide chatbot industry is predicted to reach $1.23 billion by 2025.

Businesses that ignored the internet at the start of the twenty-first century struggled to stay up with the competition. The same is true now in terms of technology. Whether you're a start-up or an established small firm, you should constantly be on the lookout for the next great breakthrough, not only to stay in the game but to develop the next billion-dollar company.

--By Nasir Shaikh, Group CEO, Lexicon group of Institutes, MultiFit and Educrack

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