By Frank Schumacher
Recently I was reading an article about typical IT mistakes businesses make, and realized it was nothing more than a sales pitch for expensive products and service. Have you ever had an IT consulting or services company present a system design that seemed outrageous? Unfortunately, that is frequently the normal mode of operation. After all, vendors that have the ever-increasing sales of product as their prime directive train the sales and marketing staffs of these IT companies.
The complexity of integrating technical hardware and software into specific business processes is beyond the skills of most small business owners, as well it should be. Entrepreneurs start businesses in fields where they have specific skills and knowledge, they should not be expected to learn IT management as well. What they must do is partner with a professional that understands the basics of their business processes, and can integrate the appropriate hardware and software into this environment.
Unfortunately, many businesses fall prey to a market that is designed to keep pushing businesses out on the edge of developing technology. This “bleeding edge” concept places the small business in a precarious position where a minor misstep can be catastrophic. Typically, a small business goes down one of two paths. The first path businesses take, the hiring of inexperienced personnel to manage the IT department, (or dumping that function on the employee that exhibits a moderate level of IT knowledge). Path two, allowing an outside IT organization, that is motivated by increasing levels of product sales, to design and implement a system. This second approach tends to work like feeding a snake, huge cash outlays every five or six years, and major personnel stress while making these big step conversions.
Fortunately, it doesn’t have to be like this. After 27 years in the IT sector, I have found the ideal relationship is that of a partnership between the business and the IT provider. Following are some of the techniques I have used over the years to keep software and systems optimized for productivity while maintaining a tight budget to maximize ROI.
Mistake #1: Falling prey to the hype of new technology
Forget the hardware until you have the right software, determine the business process to be automated, identify the software to automate those functions, and then shop for the hardware. What most businesses will find is that the vast majority of their functions do not require state of the art hardware technology. Graphic applications, or very complicated financial spreadsheets may require the newest, fastest hardware, but don’t overspend on unnecessary features.
Mistake #2: Not testing backup systems
Many small business owners assume that just because backup hardware or software is present, data itself is protected. Big mistake! Just because a server has an internal or external tape drive doesn’t mean that tape drive is actually working, or that the backup process has been properly defined. Small businesses should perform testing on backup software 2-4 times per year. These tests need to confirm that the data is being written to the drive, and that once restored the data can still be used by the applications. It is far more costly to recover lost data than to perform the proper testing of backup systems.
Mistake #3: Not understanding technology life cycles
Manufacturers call this life cycle MTBF, or mean time before failure, (typically 5+ years). What this means is that once the MTBF time has been reached half of the hardware has experienced a failure. After this point any hardware that is in a critical function should be replaced; however, non-critical use can continue as long as the technology continues to support the software. PCs can serve in most functions for 4-6 years; servers should have replacements planned at 3-4 years.
Mistake #4: The install and ignore mentality
A common error made by small businesses; however, making this mistake with IT hardware and software is ill advised. IT hardware and software requires routine regular maintenance, upgrades and adjustments. As with any mechanical device used in production, ignoring maintenance frequently results in catastrophic failures at the most inopportune times. PCs, servers and software need continual care so they can perform at optimal levels. A small business, should hire someone who can see the “big picture”, updates to one component frequently impact every other component of the network. If you don’t take care of the periodic maintenance, the question becomes not if you’ll have a problem, but when and how big.
Mistake #5: Not budgeting software and hardware upgrades
The nature of software marketing has conditioned most people to the concept of annual or bi-annual updates. In fact, to help businesses budget, many software vendors now market maintenance agreements with monthly, quarterly or annual payments that insure up-to-date software and support. Unfortunately, many businesses don’t plan to upgrade their hardware until it is either in failure, or no longer supports the software. This results in severe cash restraints that might come at inopportune times in the business cycle. Ideally, hardware purchases should be planned 2-4 times per year with a goal of complete PC and server turnover after 4-5 years of operational life. Planned upgrades result in fewer business interruptions, and can be scheduled based on your specific business cycle. Planned upgrades also allow businesses to match their technology needs with their operating plans and business cycles.
Mistake #6: Not matching the technology with the use
Everyone knows that IT–from new software to hardware implementation–is expensive. But what most vendors don’t tell you is that not every user has to have the newest technology. With typical office applications and users, you can use PC and server equipment coming off corporate leases. A business can acquire two-year-old hardware for as little as 25% of original cost with 60%-75% of operational life remaining.
Mistake #7: Skipping user training
This is a problem that’s less about equipment and more about human nature. Training is an absolute must for small businesses. Without the proper training on software or hardware, well-intentioned equipment purchases are useless. Small business owners should train their employees on all IT elements whenever possible. A well-trained staff and a solid set of IT equipment will save your company time, money and plenty of headaches. Preserve your investment by keeping staffers up to speed.
Mistake #8: Skimping on anti-virus, firewall and login security
Many small businesses cannot imagine why someone would want to access their systems, or steal their data. Security is one the biggest concerns for IT professionals, and is one of the fastest growing software and hardware segments. Installation of solid malware, spyware, and anti-virus systems are a requirement. Improperly protected systems can be compromised simply be visiting a web site or opening an email. Data theft is not the only problem presented by these insidious programs; I have found PCs and servers running hundreds of processes spawned by malware, spyware and viruses. The result is poor performance, hardware lock-ups, and data corruption, in addition, employee and customer data may be stolen and sold for the purposes of identity theft or fraud.
Mistake #9: Using pirated software
Software licensing, it may not seem right to have to pay hundreds of dollars for each user on your network, but as with pharmaceuticals, software requires a long and expensive development process. Software is a protected intellectual property falling under the control of federal laws and international treaties, and the penalties for ignoring this can be disastrous to your business. With older software, you could probably get away with this, but with modern software that periodically checks and downloads updates, your usage is no longer anonymous. If you use it, buy it, if you install on multiple PCs or servers make sure you comply with the license agreement.
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