Why It's Important To Invest In Technology During This Downturn

Article written by Uriel Barillas


The United States has seen at least a dozen notable recessions in the past century. Many of us have seen the economy dip significantly and bounce back multiple times. But until the 2020 coronavirus downturn (termed “The Great Lockdown” by the International Monetary Fund), we hadn’t experienced a significant recession in more than 10 years.
At the moment, millions are out of work, and corporate debt is sky high. The stock market, though it’s attempting to recover, initially responded disastrously to the shock to supply chains. Due to the global nature of this pandemic, it’s not just the U.S. that is facing a recession. Time will tell for sure, but some economists believe that we’re heading into a worldwide recession.
If you’re a business owner or executive, you may be wondering what to do in the meantime. Expenditures seem risky because it’s unclear what our financial futures will be. But even so, there’s a case for investing in technology in the midst of the downturn. Here’s why.
Will We Make It Through?
Looking back at the Great Recession that began in 2007, we can see that just about every industry survived and recovered over the subsequent few years. There’s reason to believe that we’ll survive this one, just like we survived the last one. Real estate may be struggling now, but the need for housing will never go away. Travel-related services will likely have more losses, but I believe even that industry will recover in time. Retailers can turn to online sales until the day when they can reopen their brick-and-mortar stores. There’s no doubt in my mind that many of us will make it through.
Be Smart — Don’t Stand Still
While some companies are working overtime to help fight COVID-19 and meet the needs of millions who are working from home, others are finding themselves with a much lighter workload than normal. Is the lockdown bringing your business to a near-halt? Don’t ride out the recession without doing anything. Instead, look inward. Examine your current operations, and figure out how to keep your company going.
Recessions come and go. Some are far worse than others, as we’re seeing right now. But when this downturn is over, your company needs to be ready with innovative products and services to meet the demand of your customers. Soon, your customers will be ready to buy again, and you’ll have to be ready to fill their needs as quickly as possible.
Come Back Better Than Ever When Economic Conditions Improve
In order to bounce back, businesses and individuals will probably need to be more reliant on tech, not less. Companies should be investing in technology that promises to help them run more efficiently and scale their business. In other words, you need to focus on tech that will pay for itself in the long run.
Do you need help managing details, automating tasks and reducing errors in your business operations? Technology is critical because it can help you:
• Get spending under control (with software that tracks and helps you manage your finances).
• Get continuous savings throughout the life of the product, not just one-time savings at the time of purchase.
• Streamline processes — everything from decision-making to annual tasks to everyday responsibilities
• Boost the efficiency of your employees by automating certain tasks.
• Innovate and fuel growth well into the future.
Looking for a software solution? Software is likely to be a good investment, especially if it directly leads to savings down the road. As a rule of thumb, SaaS is nearly always cheaper than enterprise applications and can often provide just what you need. With SaaS offerings, the provider owns the license and is able to spread the cost over a large user base. You’ll usually just have an onboarding fee and a monthly or annual subscription.
Need to upgrade your hardware? Right now could be a risky time to invest in expensive CapEx items or upgrade your hardware all across the board, but it could be the perfect time to upgrade laptops or other devices that allow you and your employees to work from home. Luckily, when it comes to PCs, you can get a whole lot more quality for the same price as compared to older machines. Newer devices will run more quickly and will work with the latest apps and software solutions, saving you from future headaches.
Right now may not be the best time to buy large, expensive items, especially if you’re not sure what your financial forecast looks like. But it is the time to tune up your business and get lean, and even though it may require a little bit of spending, it has the potential to pay off in a big way once we make it through this pandemic.
Original Source: https://www.forbes.com/sites/forbestechcouncil/2020/05/27/why-its-important-to-invest-in-technology-during-this-downturn/#5d058c0e7e35

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