Today, companies everywhere have to reduce costs in all areas to survive. Many times this involves cutting spending by lowering payroll spending, fine-tuning budgets, and eliminating non-essential spending. What encompasses essential versus non-essential spending purchase decisions may be dependent on which department you are in, and who is making the budgetary decisions.
Our sales team hears these stories every week. Busy IT folks research our software looking for tools to help them do their jobs better and faster. Many times these departments have already experienced manpower cuts resulting in fewer staff doing more work than before. They clearly see the value of a tool to help automate processes to support existing requests. They carefully research available software options, review solutions and create a short list, and then make a final purchase decision. However, many times they are frustrated to find their request for purchase denied when it is reviewed by the finance office.
While these difficult purchase decisions are made in the best interest of safeguarding cash, decisions not to spend may actually be costing your organization valuable money. Here are a few financial ramifications of delaying a decision to invest in a solution that would empower your team with the best tools available to help them, and you, succeed:
- Utilizing manpower to perform tasks that can be automated results in unnecessary spending. Advances in technology are rapidly changing the way we are able to do business. Whether you are replacing an older system, or starting from scratch, automating workflow technology can save sizable amounts of time and money. When any process takes longer than necessary, or breaks down due to inefficiency, the time wasted translates into dollars.
- Lack of efficiency and wasted time attempting to track requests, knowledge or equipment are often encountered when companies expect their support staff to get by with outdated software tools. These applications are typically lacking in functionality and some are no longer reliable. When customers cannot easily find their own answers and feel your response times are too slow, they may find a new provider. This can lead to lost revenues. In any economy, clients are valuable and customer retention will always have a definite dollar value associated with it.
- Many times the initial research done on a software project may have to be shelved and started all over again. Valuable man-hours spent researching this year may have to be written off in favor of a new round of research when the project resurfaces again next year. Some companies will even routinely spend payroll on research projects only to choose to stay with the status quo again and again.
- Delaying a purchase decision can sometimes mean that the cost to purchase the favored product may be even more months down the road. Vendor discounts may not be available when the CFO says that it is okay to spend again. In the long run, waiting can sometimes mean spending more money as opposed to saving money. If a solution seems to be a great fit for your needs, try working with the vendor to find a creative way to implement it without breaking the bank.
It is essential when making a purchase decision to count the cost of doing nothing. Reconsider what is essential for running your department in the most cost-effective way possible. A one-time investment on software can save many lost man hours in long-term, recurring payroll.
Novo Solutions offers a suite of support and tracking software with affordable, flexible purchase options. Contact us for a free demo and 30-day trial of Help Desk Software.