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Simplify and Clarify: Using Technology to Uncover Hidden SavingsBy Bill Stomp
Here is a simple question for every executive and
business owner: What is your definition of
technology, as a subject, and as a practical
resource involving the way you run your company?
The answer to that query reveals a wealth of
information, from the way a business operates and
manages the flow of information to how an
organization collects and analyzes data, as well as
the investment priorities a company sets for itself.
My answer to the same question, which can benefit executives in all manner of
industries, is straightforward and frank: Technology must never be an abstract, complex
and expensive idea – the province of a handful of experts – because this subject is too
important and too valuable to be purely academic.
Technology must enlighten, unite and reveal, period. Those three things are direct,
concrete and measurable. To that end, they must allow executives to see, in real-time,
where and when employees make deliveries, meet with clients, and receive and
transport goods and services.
This proverbial “last mile” is, in fact, a route of many miles: For, technology must,
again, enlighten (explaining how efficient or productive a strategy is), unite (creating a
focused mission for everyone to fulfill) and reveal (showing how many employees are
necessary for the day-to-day completion of specific tasks).
That brand of technology is neither costly nor difficult to activate; it is as simple as – it
already exists as an application for – the smartphones and tablets workers use
constantly. I issue this statement from my own professional experience, where I as GM
for a 110 vehicle fleet had the opportunity to test and try most mobile handsets and
dispatching/routing software. Our technology team was surprised to see how far some
had progressed. Now as the Vice President and senior consultant
for DigitalDispatcher.com, an innovative developer of solutions for the fuel delivery and
HVAC service industry I get to see the many ingenious ways delivery companies are
leveraging technology across the country. More to the point, as this is where the larger
discussion about technology should begin, new developments in dispatch and logistics
technology show the routes, times and numbers of deliveries, and the variables (such as
accidents, vehicle breakdowns and traffic) responsible for any redundancies or
inefficiencies combined into one solution…this equates to quicker and easier savings for
companies who see costs rising in most areas of their business.
Technology in the Service of Operations
This emphasis on technology in the service of operations and savings is the most
quantifiable way – during and after a single workday – to calculate savings, because a
manager can seeand then measure whether he needs six drivers instead of ten, or five
trucks or vans instead of seven. That savings can translate into hundreds of thousands
of dollars, because a company no long needs to insure, fuel and maintain a fleet of
vehicles. Nor does that company have to pay at least $100,000 in salary, benefits,
disability fees, workers’ compensation, and health insurance and pension contributions.
Now, let us broaden this principle as a metaphor for how businesses perceive and use
technology as a communications resource.
Do Not Isolate or Sequester the People Running Your Technology
If the above example teaches us anything, and it educates us about several things,
there is a reminder about the value of
technology. Which is to say, a
company must never treat technology
as an afterthought to its core
business, as hardware to be stored in
a makeshift data center or assigned
(so as to be forgotten) to junior IT
personnel. That approach, which is,
sadly, too common among a diverse array of business owners defeats the very purpose
of technology.
Let us, therefore, remind – and repeat, and repeat once more – what technology is not.
It is not a collection of servers, multicolored wires, cables, monitors and printers — mere
accessories to a company’s principal mission, which may range from selling clothing or
food to manufacturing industrial equipment or servicing coolant systems. Technology is
a practical application; itshows and tells, providing executives with the relevant figures
necessary to make the right decisions.
But for technology, how can a business owner know which employees are the most
productive or which delivery routes are the most lucrative, or which purchases are
superfluous or outdated? Without technology, how can a company communicate
internally and broadcast a message externally, to its consumers, of unity and purpose?
And finally, how can an organization simplify invoicing, accelerate payments and boost
morale without technology?
Embrace and Educate Your Workforce
Asking these questions is both a fiduciary duty – no executive should forsake significant
savings – and a sign of smart leadership. The way to make the answers rewarding starts
by embracing technology, in word and deed, complemented by educating employees
about the benefits of the software or applications, which make them more productive
and eligible for increases in pay.
So, yes, technology is an ally and an asset. Business owners
should embrace this fact, as it will guide them towards greater
results, more intelligence and much deserved peace of mind.
Technology is, indeed, a company’s most important friend.
Bill Stomp is Vice President and Senior Consultant
for DigitalDispatcher.com, a mobile field management software
solution for various product delivery industries.