In one of my roles with The Riverside Co., I assist some of our small and midsized companies on IT projects.
While some have strong IT systems and processes, others are extremely vulnerable to security threats and are missing huge opportunities to boost their bottom lines through technology. Almost any company has IT weaknesses, but all too often, smaller companies neglect this vital engine for success.
Riverside’s portfolio includes more than 80 small and mid-market companies and each one can benefit greatly from doing IT better. Riverside does a deep technology assessment of any company in which we’ve invested, and it invariably uncovers unmet needs.
Security first
Poor cybersecurity can literally destroy a company. Riverside strives to encourage a risk-based approach for managing cybersecurity for its portfolio companies.
Many smaller businesses incorrectly assume that cybercrimes like ransomware attacks, phishing or other hacking only affects large consumer companies. The truth is that hackers exploit vulnerabilities anywhere online, and porous security can cause data loss, compromise customer accounts or worse. At minimum, any business should:
■ Perform a cybersecurity assessment of its current systems to identify threats and understand where (and how) all of its data is stored. This allows for the classification of data and different levels of security as needed.
■ Address any threats by implementing data security protocols:
● Develop a password management strategy.
● Introduce multi-factor authentication and invest in a single sign-on solution.
● Prepare an incident response plan.
■ Ensure it is complying with all laws and regulations with respect to data handling (e.g. the General Data Protection Regulation, which would apply to any company transacting with any business or consumer in the European Union).
Capturing IT opportunities
Once your data is secure and your IT fundamentals are solid, you can start to look to technology for ways to add value to your company. Great technology teams can generate significant savings and increased productivity.
For example, it is imperative to correctly choose and manage costly and high-risk implementations like enterprise software that touch every element of your company. Poorly executed ERP projects cost more than money — they can cost you productivity, sales and customers.
And strong technology does more than manage risk. It can make hiring more effective, add efficiencies to project management, improve communication and more. IT is more than computers and servers — it’s a key part of any growth strategy and an effective way to grow your bottom line.
Viable IT options
If these efforts sound daunting and expensive for a company your size, remember that the cost of doing nothing could be catastrophic. And while you may not have the means for a robust in-house IT department, there are many credible outsourced options at various price points. At minimum, you’ll get your company’s data as secure as possible. However, don’t dismiss the value of IT as a partner for growing your business. ●
