Integrating Technology with Strategic Planning

Contact: Bob Staiger

For growing companies, the large capital expenditures associated with an IT infrastructure reduce cash flow. In theory, this up-front investment brings a financial return through more efficient operations and better information management. On the other hand, there are a number of tried and true technological steps that could boost cash flow or reduce operating costs so that the company will show better profits without making major changes to the IT infrastructure.

If the owner is considering a sale of the business within the next 5 years, then investing in technology can alter the value of the business, both positively and negatively. Ultimately, the price paid for the company is strongly influenced by the level of value-added technology (or lack thereof) already at work.

These scenarios must be explored fully in the broader context of a business’ overall strategic plan.