Really Bad Ideas

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Really Bad Idea: Stop IT Purchases, Try to Make Do

If a company is going bankrupt, they will have no choice but to stop buying technology items; but for other enterprises who are still an ongoing concern, IT is as strategic as ever. Trying to make do can be penny wise but pound foolish. 

These slides outline eight reasons why an IT department needs to keep their technology fresh and their systems in tip top shape during tougher economic times.  Good luck!
Eight Reasons Buying It Now Is Critical
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Comments (4)

Feb 04, 2009
Thorsten Claus said...
Eight Reasons Why Buying IT Now Is NOT Critical:

1/ The competition is hunting your market ... and all you think you need is IT, while the real problem is your business model.

2/ Downtime is an additional expense ... that hurts but doesn't kill. The cash you don't have right now to pay your IT and the personnel for maintenance does kill.

3/ Equipment wears out and will fail ... so more IT will wear out more and fail more. is it the right time to buy new IT in its current lifecylce?

4/ Worker Productivity is critical when staff shrinks ... and when staff grows, and when it stays the same. It's critical anyways. And productivity might have nothing to do with IT but with empowerment, trust, responsibilities, process.

5/ Runnind older systems longer increases cost ... NOT - they're paid for. They only increase "cost" if they're down, need expensive maintenance, are not "productive", etc. Old systems that work are GREAT! How do you think telecoms make money on voice calls?

6/ Outside project resources are cheaper ... if you need them, if it's not cash-out-of-the-company, if you can let go the people who are on board for that job, if the job actually gets done more efficiently and effectively, if the stuff you get sold on will not be sold to you because they're closing the doors and in two weeks tumble weed will blow through their customer service.

7/ Current applications require more computing resources ... and you have lots of computational power available as the number of customers basically declined by 30% and systems are spinning free. Plus you have all the computational power from the virtual machines on the machines of employees you had to let go.

8/ New technologies can save money ... if they do. (Yeah, that was lame). But do you have the cash for the "new technologies", what's the Net Present Value, should you rather spend the bucks you have left in service innovation, should you hire some smart people you can get now for a reasonable price as the economy is down, etc.

As in the slide deck, these are some generalizations, I know. But it shows that during these times - I call them wealth of economic opportunities - it's easy to grab for stereotypes, one-size-fits-all rules, and the simple message. Some things are inherently complex, whether you like it or not. You can simplify them, but that's as if you would say "Twitter is nothing more than a database, anyone could build it." :) Oh darn, did I say that out loud?

Feb 17, 2009
Eric Pederson said...
Fair counterpoints.

I'd think the key is in examining decisions in depth. The value of the slide deck would be in precipitating discussions - certainly it goes against the grain, against the impulse to stop all discretionary IT spending when the business outlook is negative.

YMMV - but we should think before hypermiling our way to work. :)

Jul 23, 2009
Thorsten Claus said...
[Ha, why did it take me 6 months to read your comment? shame on me - or on posterous for not having disqus installed ;)]

Yep, I exactly took it like that - and I liked it for that. As I said in my original blogpost over at http://www.playoutintelligence.com/2009/02/04/it-not-critical/ I took an equally generalizing stance - and I didn't hear the audio track of the presentation...

Did you also read Daniel W. Rasmus' response at http://future-of-work.spaces.live.com/blog/cns!C07907DBA0E3BEA6!1268.entry ?

BTW: in the meanwhile I saw 2 companies that closed their doors over IT upgrades to "innovative New Media Business Intelligence Dashboards" they couldn't support, maintain, or pay for; and I saw 2 companies that completely turned around with a more efficient and productive IT.... darn, eh?

Jul 27, 2009
Eric Pederson said...
I agree with much of what Thorsten says, but what I agree with most is this:

If you're not sure what you're hunting, a quiver of sharp arrows will be no help. Once you know what you really should be after, sharp arrows are incredibly critical, especially if you've decided to go after a challenging animal.

In times of change (like now) it pays to take a fresh look at what you're hunting and how. There's little doubt you've got to make sure you have the business model and offerings that fits the changed times first before you optimize your operations.

But then you need to be sharp on execution or it's all for naught.

cheers

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