5 Reasons a Mid-Market Business Struggles with Poor Technology Decisions
Mid-sized businesses that are from traditional, non-digital industries are always looking to be more operationally efficient and differentiate from the competitors. One way they can do this is by trying to implement cutting-edge technology solutions. However, many mid-market businesses struggle with making effective technology decisions and developing a strong technology strategy. This is often due to the fact that they lack a clear set of technology objectives that align well to business goals, inability to prioritize technology initiatives based on strategic importance, limited access to technology leadership, resistance to change and adoption, and inefficient management of technology partners and vendors.
In this blog post, we’ll discuss these drivers of poor technology decisions in more detail and offer some tips for how mid-sized businesses can overcome these challenges.
1. Lack of Clear Technology Objectives That Align to Business Goals
Mid-sized businesses often struggle to develop a clear set of technology objectives that align well to business goals. This can happen when they ignore technology investments as crucial elements of business priorities, which can negatively impact a company's ability to maintain a competitive edge. When business objectives and technology objectives do not align, it can lead to companies wasting money on a technology that provides no return on investment. The solution is for mid-sized businesses to create a well-defined IT strategy that aligns with their business goals.
2. Inability to Prioritize Technology Initiatives Based on Strategic Importance
Mid-sized businesses that do not have a prioritization plan often waste money on technology solutions that are not strategically important. When businesses fail to prioritize technology investments, they can fall prey to provider manipulation, overcomplication, and delay. By prioritizing technology investments and aligning them with business goals, mid-sized businesses can implement the necessary technology solutions more efficiently.
3. Limited Access to Technology Leadership Like CTO or CIO
Mid-sized businesses sometimes struggle with developing technology strategies because they have limited access to technology leadership. This could be due to the company's inability to afford or need a full-time CTO or CIO. Without such executive steering, mid-sized businesses may lack the knowledge or experience needed to plan for the future. The solution is for these companies to hire an an experienced CTO or CIO who can work on a fractional or consulting basis, providing guidance and bridge the gap between senior management and internal or external technology teams.
4. Resistance to Change and Adoption
Many mid-sized businesses suffer from resistance to change and adoption when it comes to technology. This resistance may be due to a lack of understanding of the benefits or reluctance to move away from legacy systems. The solution is to identify the issues that could cause resistance and address them head-on. Mid-sized businesses should make every effort to educate employees about the impact of new technology and seek employee input.
5. Inefficient Management of Technology Partners and Vendors
Mid-sized businesses with a limited IT team and inexperienced technology leadership often struggle to manage technology partners and vendors effectively. This can lead to subpar solutions and unnecessary expenses. By creating clear objectives and well-defined contracts, mid-sized businesses can better manage technology partners and vendors.
Written By : Vyom Upadhya
Vyom Upadhya brings over 20 years of technology leadership experience with Fortune 500 and Top 10 PE-backed firms in industries such as telecom, healthcare, energy, and real estate. As a seasoned fractional CTO, Vyom has a proven track record of co-creating successful business and technology strategies, building high-performance teams and culture, and leading digital transformation and technology scaling initiatives for mid-sized enterprises.