Driving Factors in Technology Investment
For any business, knowing when to invest in new technology often begins with identifying the key indicators that signal it’s time for change.
For manufacturers in particular, external regulations are among the major drivers for IT investment. As Tom Jarry, Director of Engineering at Cooperative Systems, explains, “Our clients might need to invest in new technology due to compliance needs. Manufacturing clients regulated by CMMC [the U.S. Department of Defense’s Cybersecurity Model Certification] or ITAR [the Department of State’s International Traffic in Arms Regulations] are often required to invest in security tools like privileged access management, EDR, and multifactor authentication.”
At times, market needs can act as a forced catalyst for change. For example, if a manufacturer chooses not to become CMMC-compliant, they’re putting themselves in a position to potentially lose business, as they’re immediately dropped from certain vetting processes.
Beyond regulatory and standards body oversight needs, efficiency gaps and workflow disconnects are additional—and very strong—indicators that an upgrade/update is overdue.
“Streamlining processes and meeting competitive market needs are also good reasons to invest in new technology, such as integrating ERP and CRM systems,” Tom shares. “We tend to plan growth strategies in five-year increments and for businesses planning significant growth, technology upgrades are often essential to aligning with their long-term strategy. Without updated tools, they risk falling behind operationally, competitively, and strategically.”
The Need for Careful, Data-backed Consideration
Once the need for new technology has been determined, businesses must carefully evaluate the level of investment and accompanying internal impacts.
“Are the needs consumer- or compliance-driven, or based on operational maturity? How then do those issues correlate with the five-year growth plan? The requirements should be backed by a detailed cost analysis showing how the shift and its accompanying ROI will improve overall operations and the bottom line,” says Jarry.
As companies consider IT investment, knowing how far to go is another core consideration. While the allure of cutting-edge technology might seem attractive, the risks can outweigh the rewards.
“We recommend sticking to proven, stable solutions. Bleeding-edge technologies are often untested and can lack critical security measures,” notes Jarry. “For industries bound by strict compliance and data-security requirements, these gaps can introduce unnecessary risks.”
Challenges in Transitioning to New Tech
Even with a clear plan in place, new technology implementation can present challenges. Resistance to change is a common hurdle, especially among employees accustomed to existing operations. Transitioning to new systems requires clear, top-down communication and a phased approach to ease concerns.
Training also poses a possible obstacle.
“Large teams that touch technology as a smaller part of their role can be difficult to train,” Jarry says. “Machine operators, for example, need to focus on production, so pulling them away for training can disrupt operations.”
Data risk mitigation is another area where careful planning is required. Moving sensitive information between systems must be handled securely to avoid complications.
“Proprietary information must be classified and properly protected as it moves between systems,” Jarry emphasizes. “Proper checks and balances are necessary to avoid access-related issues during the transition.”
The Right Approach to Technology Changes
Mapping and implementing new technology requires a structured, collaborative approach. Jarry highlights the importance of starting with a solid foundation.
“We begin every client relationship by creating a detailed Technology Optimization Roadmap, a process involving analyzing the client’s environment, applications, and vendor relationships to identify areas for improvement and creating a plan that aligns with their business goals,” he says. “When it is time for updates, we work closely with clients to understand the solutions they’re considering, review vendor contracts, and map out necessary migration steps. Cooperative Systems takes a ‘seat at the table’ approach that ensures businesses not only navigate challenges but also position themselves for sustained success. We’re a partner not a vendor.”
Knowing when to invest in technology upgrades is crucial for any business aiming to stay ahead in a competitive landscape. Whether the drivers are compliance, inefficiencies, or long-term growth objectives, recognizing the right time to act can make all the difference.
Connect with us today to learn more about how Cooperative Systems can ensure your business stays current with upcoming technology.