How to Make Smart IT Investments that Drive ROI for Your Business

As a business leader, you understand that technology is an essential tool for achieving a competitive edge and driving growth. However, navigating the vast array of tech options can be overwhelming. How do you ensure your investments deliver the desired return on investment (ROI)?

At SMIKTECK, we understand the complexities of technology transformation. We’ve witnessed firsthand how businesses can lose valuable resources on solutions that don’t align with their specific needs. 

Here, we’ll share valuable insights to help you make strategic technology investments that fuel your business success.

Aligning Technology with Business Goals

One of the primary reasons technology investments fail to deliver expected returns is the misalignment between technology solutions and business goals. A 2024 PWC report highlights that a significant proportion of companies did not achieve maximum ROI because their technology transformation objectives were not well understood across the organisation. 

To avoid this pitfall, businesses must ensure that their technology investments are directly tied to their strategic goals.

Actionable Insight: Conduct thorough technology assessments to understand how specific technologies can support your business objectives. Involve key stakeholders from various departments to develop a shared vision for technology transformation.

Effective Collaboration Between IT and Business Units

The success of technology investments heavily relies on the collaboration between IT and business units. The PWC report indicates that only 10% of business representatives felt that the collaboration with IT during the technology transition was effective. This disconnect often leads to incomplete project delivery and missed deadlines.

Actionable Insight: Foster a collaborative environment where your IT team and business units work together from the initial stages of the project. Regular communication and clear processes can help bridge the gap and ensure that business requirements are effectively translated into technology solutions.

Preparing Employees for Technological Changes

Employee preparedness is crucial for maximising the benefits of new technology. The PWC report reveals that 50% of companies did not adequately prepare their employees for technological changes, resulting in underutilisation of the technology’s potential.

Actionable Insight: Implement comprehensive training programs to upskill employees and help them adapt to new systems. Regular training sessions and continuous learning opportunities can enhance employee competence and confidence in using new technologies.

Investing in Scalable and Flexible Technologies

Scalability and flexibility are essential characteristics of technology investments that offer high ROI. Technologies that can grow with your business and adapt to changing market conditions provide long-term value.

Actionable Insight: Choose technology solutions that are scalable and flexible. Cloud services, for example, offer scalable solutions that can be adjusted based on business needs, ensuring cost-effectiveness and operational efficiency.

Emerging Technology Investments Among Australian SMEs

According to a NAB SME Business Insights report, almost one in four (23%) Australian SMEs have already invested in emerging technology solutions like artificial intelligence (AI), machine learning, and automation to enhance their business operations. An additional 20% plan to invest in these technologies in the near future.

These investments are most prevalent in South Australia and Western Australia, with 30% of SMEs in these regions having already invested, compared to 21% in New South Wales and 20% in Victoria. The main benefits cited by SMEs include increased productivity and reduced administrative tasks. Approximately 40% of SMEs believe that AI will make their businesses more profitable, while a third anticipate a reduced need for staff.

However, the report also highlights barriers to adopting these technologies, such as the need for training, lack of time, and high costs. Around half of SMEs identified training as the main barrier, with others citing time constraints (36%), lack of understanding (35%), and cost (32%) as significant challenges. Despite these barriers, awareness and interest in AI and automation remain high among Australian SMEs, with nearly 28% having a clear understanding of AI and its potential benefits.

Investing in technology is not just about keeping up with the latest trends but about making strategic choices that drive business outcomes. By aligning technology investments with business goals, fostering effective collaboration, preparing employees, and ensuring structured communication, businesses can maximise their ROI and achieve sustained growth.

At SMIKTECK, we are dedicated to helping businesses navigate the complexities of technology transformation. Contact us today to learn more about how we can assist you in making strategic technology investments that deliver real business value. Book a call with our Strategic IT Consultant to discuss how SMIKTECK can help your business achieve its technology goals and drive better business outcomes.

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