Out of 500 U.S. companies that responded to their survey, 72% anticipate that new technologies will yield a bigger return on investment than new employees.
There are, however, challenges that surround the adoption of new technologies which can make it difficult to increase the ROI for technology spend.
This article reveals three simple ways investment advisory firms in Los Angeles can accomplish that ever elusive increase in tech ROI without undue cost or use of company resources.
Avoid Short Term Solutions
Quick and cheap equipment and software purchases may be budget-friendly at first glance, but they can be more expensive in the long run – resulting in a negative impact on tech ROI. Most of this reduced ROI is found in the “hidden costs” of supporting this IT.
There’s the extra expense of support calls, troubleshooting, and lost productivity when lower-quality product fails. And the more of these lower quality components means the more often you’re dealing with all of these issues.
Spending more money on a stable and multi-featured product may make managers cringe at first, but if it prevents the company from losing clients or experiencing downtime (significantly impacting staff productivity), ROI will only go up.
Focus on the Fit, Not the Cost
Price alone should not guide the decision-making process when it comes to technology adoption or upgrades. Eliciting feedback from the firm’s IT department can ensure that the company’s needs are met without overspending.
The right hardware and software packages will keep the firm’s operations running smoothly and reduce overall expenditures, which, again goes a long way towards increasing tech ROI.
Consider the Big Picture
Decisions about technology investment are critical ones for financial services businesses. Instead of hurrying through the process, management should take the time to evaluate which hardware and software purchases make sound business sense with regards to reliability, efficiency, and performance and impact to ongoing support costs.
As investors and other clients become more tech-savvy, they have less tolerance for technology malfunctions and offline web services. Poor investments in this area can undermine a company’s reputation.
Many factors have to be considered when increasing a company’s tech ROI. Adopting a lower-cost technology that does not meet the needs of the business will gradually degrade client perception of the company name.
In highly competitive markets like the financial services industry, failure to adopt appropriate technologies can be a game-changer. By avoiding quick solutions and not equating price with value, investment advisors can keep delivering the high level of service that customers have come to expect
Has your firm taken steps to maximize tech ROI? Let us know your thoughts in the Comments box below.
And to follow-through on the tips introduced in this short article, be sure to download your free guide, Investing in High Net Worth Clients: The LA Investment Advisor's Guide to Using Technology to Manage and Grow Your Firm.