When investing in new software, avoid encumbrance

Using the right kind of software for your organisation has become a vital part of any modern business. Because it can mean a smooth operation, reduced expenses and an increased profit.

Each piece of software opens up a new “niche” that if operated correctly adds value and not an encumbrance. In one of our latest post, A guide to getting the most out of your DMP, we mentioned how adding more tools creates value only if they are being operated – and if operating them is understood. As any new software that you decide to invest in needs human resources who can manage it on a daily basis. And a normal company tech stack can easily require 10+ different tools per employee and each of them has to be understood and learned.

So it’s important to understand that what leads you to success is not the fact that you decide to invest in a specific piece of software. It’s the way you secure their operation.

New tools expand an existing business area that creates further value. But the number of software that an average company buys has gone up 10X in the last 10 years. This has caused a dramatic increase in budgets for software, but the budget for employees has been flat the last 10 years. Companies are making conscious decisions to replace people with software. So the amount of technology that is being operated in any company has only expanded. But with the small staff you might have, compared to all the tools, what should you focus on and where would you need assistance? As companies are aware that they need more tools for success, but how to organise it all?

Here are some considerations that can help you organise the way tools are operated for avoiding encumbrance.

You as a company have to consider what requirements are viable to have everything handled in-house. As you can see from the graphic, it is important to understand what are the core activities of your business so you can operate some tools with in-house staff. But if you find tools that are outside your core, but can expand your business, then you might want to consider expanding your team or finding someone else to operate that area. Of course, it is possible to be experts in every niche, but that is exactly what makes defining your core activities so hard.

What we mean by finding someone else, is that sometimes it’s best to partner up with other companies that offer full service/white glove services. With digital, it means your company is able to offer an integrated and seamless approach to its clients. And by joining forces you can give your business the boost that it needs.

Another trend that is on the rise is Artificial Intelligence (AI) that has enabled incredible opportunities to improve automation of physical and knowledge based work. According to a McKinsey Global report, 45% of activities people do on the job today can be handled by current automation technology for business. So in the future, we see half of the tools companies are buying being operated by AI. But a big emphasis on the fact that AI is still a solution many years into the future.


What we need to realise is that this is a trend that is not going away anytime soon and in order to expand your business, you need to invest in the right software and technology. But avoid adding encumbrance by finding the best ways to operate those tools and if you have enough staff to reach the requirements.




Mads-Emil H. Gellert Larsen, The Commercial Director at bmetric

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