It’s already baked in
The growth in technology spending is no surprise: Tech is no longer just back office support. It’s something that every department head incorporates into their budgets, not simply as a line item but baked into the core of each department’s operations. Today, every department runs on tech in one way or another.
So it makes sense that companies are prioritizing their tech investments, especially in the face of this current downturn. It isn’t just a matter of getting an edge over competitors who pause: It’s a matter of keeping up with everyone else who’s choosing to leverage tech to sprint ahead.
So, back to the question: Will you make it to the bounceback? If you’re still not sure of your answer, that means investing in tech now isn’t just a power move: It’s one of survival.
Momentum is critical
Momentum is important. It is real. You can feel it in every aspect of life, and business is no exception. If you choose to pause during this downturn, you risk losing that momentum you worked very hard to create. Building it back up again when the market inevitably returns will be extremely hard for many reasons, especially if you skimp on tech
Your product might not work as fast. It might not be as friendly to use because the norms have changed. If you're not fixing bugs, keeping tabs on latest versions, and upgrading systems so that you're not inheriting any vulnerabilities, you’ll quickly fall behind the pack.
Depending on how long this downturn is, there's a lot of things that can happen that could leave your customers unhappy at the same time that the rest of the market is locking in their loyalty. In fact, 62% of boards say improved customer loyalty is the top expected outcome of becoming more digital. Because it’s a digital world for your customers now, too — and they’ll go with the products and companies that are keeping up with the evolving digital ecosystem, regardless of the downturn.
In other words, if you choose to pause now, you won’t be starting up again from that same point you left off. You’ll be starting from behind on your own path, as well as on the playing field. And without momentum, it will be very hard to catch up.
Now for the good news. Your tech can help you keep that momentum, if you know how to unlock its potential.
Cutting personnel is the last thing you want to do at this moment. Good people are every business owner’s best asset, especially if they’ve grown along with you. They know how your system was built and how it functions. They have internalized all that knowledge. They are incredibly difficult to replace.
Regardless of how much documentation you have, bringing in a new team could wind up requiring more of an investment than you plan for. You might even end up spending more than you saved by making cuts thanks to recruiting fees, lost time, or other hidden expenses. Even worse, competitors can snap up any talent you cut loose, making it nearly impossible for you to get them back.
So the first step is to look for places you can use your tech to streamline how your valuable talent works. Consider hybrid workforce models, challenging workflows, and rebalancing in-house versus outsourced talent. Move communications to cloud-based SaaS platforms that push the powers of collaboration to the next level. There are so many ways to use tech to connect your talent more efficiently, empowering them to focus on what they do best.
Of course, the benefits of upping your tech go well beyond leveraging talent. You can find more opportunities to automate processes. You can harness AI to help detect potential risks, which can be particularly helpful when mitigating downturn issues like supply chain disruptions. You can use data and analytics more intelligently to inform your decision making at every level.
Unlocking your tech’s potential can most certainly help you keep that hard-won momentum, carrying you safely to the bounce back. But you have to do the work: You must refocus your strategy in order to find the places where you can extend the value of the tech you already have baked in.
If you aren’t sure how to harness your own tech internally, you should definitely consider finding a partner who can help with that — and fast.
We are here for it
At Heady, we plug into a client’s team as an extension to fill in any gaps that might emerge as markets continue to evolve. And if it’s not just a matter of filling a gap but filling a void, we’re here for that too, by building whole teams that integrate seamlessly with a client’s internal infrastructure.
Our no-nonsense, reliable approach to working with clients facilitates our ability to tap into our proven pool of global talent to place just the right people into just the right teams, scaling and fine-tuning as we grow together.
That's our specialty, our core competency. That's what we do every day. Which is why we see this downturn as an opportunity not just to survive, but to accelerate and build with the intention to scale.
Because like most downturns before it, this one too shall bounce back. And when it does, those who lean into their tech will be ready to fly forward, leaving the competition behind.