Why Organizations Need to Review Their Technology Each Year (and How to Get Started)

In the fast-paced world of business technology, staying ahead means regularly reviewing and updating your IT strategies. By conducting an annual technology review, organizations can stay ahead of technological changes, control costs, and ensure that their IT investments are driving growth and innovation.

Here’s two key reasons these reviews are crucial and how you can get started:

1. Getting the Best Pricing and Terms – Before Day One

Negotiating technology purchases can be a complex and challenging task for many organizations.

Here are several reasons why people often need help in this area:

• Hidden Costs

• Evolving Technology

• Future-Proofing

• Understanding Pricing Models

• Market Insight (knowing what others are spending)

• Cost Management

• Risk Management

• Vendor Reliability

By having a consultant or dedicated team for software procurement, you can ensure each new vendor is fully reviewed and business goals are aligned. Finding the right technology for your teams is critical, but getting the right agreements in place to make those investments work for everyone shouldn’t be overlooked.

2. Managing On-Going Pricing and Terms After Signing

Effective IT spend management doesn't end with signing a contract. Post-sale, it’s vital to continually monitor and manage your IT budget and the contracted pricing for your tech stack. It’s also important to make sure the software you have is still serving the needs of your organization, year. By understanding what each contract truly offers and negotiating the best terms for your organization, you can ensure you’re getting the most value possible not just once, but as you go.

Software companies often adjust contract prices, which can significantly impact your budget if they increase. Plus, you may have team changes – meaning you need to dial up or down the number of subscription seats you need.

As an example: Many organizations simply add new users to software contracts as they grow, without renegotiating terms or exploring bulk pricing options, which can lead to unnecessary overspending. By reassessing these contracts annually, you can often renegotiate for better rates or identify more economical alternatives if a particular service is not critical to your operations.

Making the Case

An unmanaged IT budget can be detrimental to your organization. Without proper oversight, IT expenses can balloon, using resources that could otherwise fuel business growth. When managed correctly, organizations can accelerate growth by ensuring capital is invested in the most impactful areas.

Furthermore, an annual technology review ensures that IT spending aligns with specific business goals. This alignment helps businesses understand the true cost of their initiatives and make informed decisions about where to allocate resources. Mapping IT spend back to the business roadmap clarifies how each investment supports overall objectives, preventing waste and promoting strategic growth.

How to Get Started with Your Annual Technology Review

Whether on your own or with a consultant like Cronis Partners, your Annual Technology Review (ATR) involves at least the below steps. Take a look and once you’re ready, contact us to discuss how we can manage this for your organization.

• Inventory Your Current Technology: Start by listing all the technology tools and services your organization uses. This includes software, hardware, and subscriptions. Understanding what you have is the first step to determining what you need.

• Assess Usage and Value: Evaluate how each tool and service is used and its value to your organization. Are there tools that are underutilized or no longer meet your needs? This can help identify areas where you can cut costs or invest more wisely.

• Review Contracts and Licenses: Examine your current contracts and licenses. Look for upcoming renewal dates, price increases, and terms that could be renegotiated. This is also a good time to check for any unused licenses that you’re still paying for.

• Benchmark Against Industry Standards: Compare your technology spend and usage against industry benchmarks. This can provide insights into whether you’re overspending or if there are opportunities to optimize.

• Consult with Experts: Engaging with technology consultants can provide an external perspective and expert advice. Consultants can help decode complex contracts, suggest more economical alternatives, and provide strategies for maximizing your IT budget.

• Align with Business Goals: Ensure that your technology investments are aligned with your strategic business goals. This alignment ensures that every dollar spent on IT contributes to your broader business objectives.

• Implement Continuous Monitoring: Establish a process for continuous monitoring and regular reviews. This helps catch any issues early and ensures that your technology strategy remains aligned with your business needs.
  

Don’t let an unmanaged IT budget stifle your growth. Start your technology review today and keep your business on the path to success.

Ready to get started? Schedule a meeting.

Or contact us by emailing info@cronispartners.com and calling or texting 305-496-0951.

Why Cronis Partners?

Our team has overseen hundreds of millions of dollars in IT spending and can help you maximize the value of your existing investments. We know it’s an especially challenging time to do business – there are big expectations, sometimes limited budgets and always an eye on making the best decisions possible. We bring a combined 40+ years of experience at publicly-traded companies, private equity funded rocketships and disruptive startups – so we know how to help meet you where you are and help you get where you want to be.