Several components are vital to a business’s day-to-day operations. But, in today’s highly technological world, Information Technology (IT) is one of the most important aspects of any business. And any time you talk about IT, you talk about ROI (return on investment).

Staying on top of ever-changing technologies is imperative to a business’s success, because if technology is passing you by, then it’s likely your competitors are, as well. Owners who overlook IT or treat it as just another line item are doing themselves and their companies a great disservice, says Rory Sanchez, president and CEO of SLPowers.

“Many say that IT is a necessary evil and simply belongs in the expense category, but, like anything else, it needs to align with your business goals and provide a return by way of efficiencies and productivity,” Sanchez says.

Smart Business spoke with Sanchez about IT services and how to know that you’re getting the most bang for your buck.

How can you measure returns on your IT investment?

The process starts by understanding the total cost of ownership of IT. Far too often, companies look at the price of the hardware or the initial installation and make their decisions based on lowering that cost. The reality is that the price you pay to purchase and install hardware and software is just a fraction of the total cost of ownership. A much larger portion will go toward training, maintenance and support over the life of the technology. Thus, companies need to set their sights on the big picture, optimize the way they handle these variables, and turn IT into a productivity tool that aligns with their business practices and goals. Also, using tried and true software in proven platforms will go a long way in enhancing your IT ROI.

What are the key components to a good IT/network set-up?

Building a solid IT infrastructure is just like building a solid home; it starts at the foundation. First is the physical layer, which includes the cabling infrastructure, wireless access points, the routers, switches and other connectivity points. If you’re going with a Microsoft-Windows-based network, you can argue that the operating system is the most important issue and that all hardware is created equal, but this couldn’t be further from the truth. Servers from Hewlett Packard and IBM are designed from the ground up to be servers and each and every component is designed for proper cooling and continuous operations. Not all servers are built alike and not all servers are tested to the same degree when it comes to compatibility with Microsoft software.

If your IT and network aren’t up to snuff, how will business be affected?

The business world is constantly changing and evolving, and you always want to stay ahead of your competition. IT is like a car; a newer car will run better and get you where you need to go better than an older car. But, that doesn’t mean everything is built the same. All IT is generic to a certain degree, but running on the latest platforms and keeping systems updated is essential. Another thing to consider is security. All businesses use the Internet in some way, shape or form, and there are all kinds of dangers online these days. Keeping systems up to date will help keep your business secure.

What are the biggest mistakes companies make when selecting IT services?

The first, and probably biggest, mistake companies make is shopping on price instead of value, and not properly planning their network infrastructures. It’s always worth the money to figure out exactly what IT your business needs and what you want to accomplish with it. Many companies complain that they spend thousands of dollars on IT, and the technology doesn’t work for them. Usually, it’s because they didn’t spend the time and money upfront to make the right IT decisions.

Another mistake is when growing companies start off with small systems and continue to add pieces over the years as business grows. Whether you like it or not, at some point, you’re going to have to do a complete overhaul. Take a step back, re-evaluate your situation and rethink new structures that will enhance and grow your business.

A third mistake is relying on an internal IT department because you think it costs less. Sure, a salaried IT person will always be on-site for you, but you could get the same level of service — at a fraction of the cost — by outsourcing. Then, you are getting all the resources of the outsourcing company, rather than the resources of just one individual. Plus, the outsourcing company doesn’t take sick or vacation days, and you don’t have to pay to keep it trained and up to date on new technologies.

How can good IT lead to better business?

No matter how you use the Internet or other technologies, good IT will lead to increased customer confidence, efficiency and productivity. Good IT will permeate throughout the entire organization, and your clients will see it. Having IT that stores customers’ data is great. When they call, you’ll be able to pull up their past orders and purchase agreements and even know their family members’ names and birth dates. This sort of personal touch is what customers are craving in today’s market. And, IT facilitates good customer service.

RORY SANCHEZ is the president and CEO of SLPowers. Reach him at (561) 835-8351 or rsanchez@slpowers.com.

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