Technology forecast

Cost-cutting measures have defined the business environment in 2009, but business leaders have discovered that it is equally important to increase workflow and efficiency throughout an organization. By continuing these strategies into 2010, companies can place the focus on improving processes.

“For most of 2010, you’re still going to see a lot of pressure on business expenses,” says Bill Dvorak, Chief Financial Officer and General Manager of CIMCO Communications. “A lot of the larger companies and banks are starting to show more profitability, but I don’t believe it’s because revenue is increasing, I think it’s because they are managing their expenses.”

Smart Business spoke with Dvorak about how companies can use IT to take their business processes to the next level in the new marketplace.

How is the current business climate driving changes in business strategy?

To operate successfully, top-level management knows that employees at every level need to understand the goals and objectives of the company. In addition, the long- and short-term goals that the company utilizes have to align directly to those strategies in order to be effective.

For example, if 2010 looks like a year of tremendous revenue growth, then a company would gear strategy around supporting sales and adding products. If creating operational efficiencies is a more realistic goal, a company may alternatively receive more benefit from cost savings than going after sales in a tight market.

How can technology solutions be part of these strategies?

Any kind of technology change requires a certain amount of re-engineering of the business. Business leaders must think through what they want to achieve from an investment in technology. Just jumping into something may not produce any value — in fact, it will end up being a point of frustration and adding costs.

You have to figure out where you need to go next, what you’re trying to accomplish and then find the technology that will get you there. Voice over Internet Protocol (VoIP) gives you a lot of flexibility and cost savings if it’s installed and engineered properly within a business.

For example, a company might invest in a VoIP solution to achieve long-term scalability and flexibility for the business. The result of that solution may allow employees to work remotely, therefore causing real estate costs to decrease.