How to Save Money with IT – Part Two
Last issue, we discussed saving thousands of dollars through investment in technology. However such savings, while useful, pale in comparison with the rewards of further investment.
This issue, we discuss Unified Communications and its role in helping you get more for your money out of existing investments.
Unified Communications is a simple concept: it is the act of rationalising your suppliers of various communication technologies into a single platform, supplied and maintained by a single ICT partner. Many organisations use email, telephony, video conferencing, instant messaging and document sharing.
Almost all have to bear the cost of two or more supplier relationships to achieve it. Furthermore, employee uptake of the various options available is often low, due to the need to understand all the various systems. Unified Communications is about bringing all of this functionality together in a single platform - with a consistent look and feel to make it easy to learn and operate.
Consider, for example, using Microsoft and your preferred ICT partner to deliver all of the above. There is only one reseller involved and, in most cases, your users are already Microsoft Outlook users – so much of the required investment and training is already in place.
Rationalising suppliers and combining your communication systems is, however, just the tip of the iceberg. Moving on to the real cost of most organisations - its people - and the opportunities are even larger.
Unified Communications severs the need to be physically close to your colleagues. As humans, we should always aim to ‘press the flesh’ and ‘eye-ball’ our colleagues but, if we can reduce this to, say, 50%, then the savings can be massive. Examples of savings that can be achieved include:
· Travel – whether it’s crossing the bridge, or to any other city or country, reducing the number of trips makes for huge savings. It’s not just the direct cost (petrol, flights, taxis, hotels, expenses), but also the business and personal cost of hours of unproductive time. Video conferencing allows you to see the person. Document sharing allows you to work collaboratively on a document with a click of a button – immediately - from anywhere.
· Phone Calls – many calls in the old world ended in leaving a message on their landline, then one on their mobile saying you’ve left a message on their landline, followed by an email to say you’ve left a message on their landline and their mobile. Then, when they call back, you are unavailable!
· Don’t under-estimate the amount of time this wastes. With ‘Presence’, a small coloured icon indicates availability before you bother calling - Green for available, Yellow for away, Red for busy. Simple - and very effective.
· Paying for calls between branches – if you can share data between branches, you can share voice between branches over the same line at no additional cost.
In summary, unifying your communications can repay its cost many times over.
Chris Maclean is CEO of Maclean Computing, New Zealand’s premier provider of ICT to companies with between 25 and 250 computer users. You can contact Chris on chrism@maclean.co.nz for further information.
Moving your Succession Plan Forward
Follow our eight-point plan to facilitate your eventual succession and exit-from-business strategy.
It’s no picnic trying to increase business value by growing Earnings before Interest and Tax [EBIT] while de-risking your operating model to get there. But these two performance criteria are critical to a successful succession plan. Strong corporate governance, including effective financial management, will improve your chances for success during this difficult economic climate. These points below may sound obvious, but our experience shows that very few boards have noted them all or shared them amongst senior management.
1. Determine an unbiased valuation of your business so you can capitalise on it, if the opportunity arises. Identify what’s up for sale. The whole business? Or can you sell components as a Bolt on for another competitor?
2. Identify your goodwill and IP, and patent it if need be. This could include: brands, knowhow/ systems, databases, recipes, software, contracts, licences, location, royalty agreements, technology, staff, etc. Know and value them – they will be your capital gain.
3. Agree on an exit timetable and what must be done within that timeframe.
4. Transfer the personal goodwill to the business. This takes time and now is a great period to find that next star performer. At some stage you need to step back or replace yourself. It’s best to do it before you sell the business rather than on sale date.
5. Identify your preferred succession option (eg an external party sale, related party sale, management buy-out, or generational handover) and have a Plan B.
