Tips for Choosing the Right Digital Technology
- Fred Maude
- Reading time: 6 minutes
Clients often ask us how to ensure they’re making the right technology choices as they scale their businesses. Here’s the advice we give them to make the best decisions:
1. Compare multiple tools, always 🔍
Don’t settle for the first solution that crosses your path, whether it was recommended to you or you found it on your own. We recommend finding at least two other options that address the same problem. Then, create a scorecard tailored to your specific business needs and use that to evaluate which tool will truly solve your challenges.
2. Assess the tool’s complexity 😕
Don’t overlook how user-friendly the tool is for your team. Will they be able to grasp it with minimal training, or will they need a master’s degree to figure it out? Too many businesses invest in great tools but fail to allocate enough resources into training, ultimately limiting the tool’s potential and benefits.
3. Measure the tool’s real impact 🎉
It’s easy to get swayed by impressive case studies, but to understand the real impact on your business, take a more critical approach. Ask for projections, review case studies (cut those numbers in half for realism), and talk to your partners. With this, you’ll be able to calculate the incremental value the tool can bring to your business.
4. Plan for future costs 📈
Understanding the commercial model is crucial. Whether it’s consumption-based or a fixed fee, project the costs over time. If you’re B2B, ask yourself what happens when you bring on more clients. If you’re retail, how do more SKUs affect the cost? Modeling this out will give you a clear picture of future expenses and scalability.
5. Calculate the ROI ➗
Finally, always run the numbers. The formula is simple: incremental value divided by the total cost (tool fees + training costs) equals your ROI. Let this guide your final decision and ensure you’re investing in something that truly delivers value for your business.
They’re important questions to ask, investing in the wrong tool can cost time, money, and momentum, whilst the right tool can be a game changer.
1. Compare multiple tools, always 🔍
Don’t settle for the first solution that crosses your path, whether it was recommended to you or you found it on your own. We recommend finding at least two other options that address the same problem. Then, create a scorecard tailored to your specific business needs and use that to evaluate which tool will truly solve your challenges.
2. Assess the tool’s complexity 😕
Don’t overlook how user-friendly the tool is for your team. Will they be able to grasp it with minimal training, or will they need a master’s degree to figure it out? Too many businesses invest in great tools but fail to allocate enough resources into training, ultimately limiting the tool’s potential and benefits.
3. Measure the tool’s real impact 🎉
It’s easy to get swayed by impressive case studies, but to understand the real impact on your business, take a more critical approach. Ask for projections, review case studies (cut those numbers in half for realism), and talk to your partners. With this, you’ll be able to calculate the incremental value the tool can bring to your business.
4. Plan for future costs 📈
Understanding the commercial model is crucial. Whether it’s consumption-based or a fixed fee, project the costs over time. If you’re B2B, ask yourself what happens when you bring on more clients. If you’re retail, how do more SKUs affect the cost? Modeling this out will give you a clear picture of future expenses and scalability.
5. Calculate the ROI ➗
Finally, always run the numbers. The formula is simple: incremental value divided by the total cost (tool fees + training costs) equals your ROI. Let this guide your final decision and ensure you’re investing in something that truly delivers value for your business.
They’re important questions to ask, investing in the wrong tool can cost time, money, and momentum, whilst the right tool can be a game changer.
