Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Technological progress may not be so golden for NZ Business

Technological progress may not be so golden for New Zealand businesses


Rapid technological progress may be setting many New Zealand organisations up for future failure as overwhelmed business leaders fail to build IT scalability into their strategic plans.

Chief Executive of New Zealand IT consulting and software development company Designertech, Ray Delany, said today that the IT sector is encountering more and more small to medium enterprises that are not configuring their technology for future growth.

“Admittedly, the bewildering speed and development of technological innovation is a challenge for people in the IT sector to keep up with, never mind non-specialists who probably have to tune-out just to keep from being overwhelmed – the waters are very muddy.

“The result is that that organisations end up caught in The Red Queen Effect,” he said.

In the Red Queen's race in Lewis Carroll's Through the Looking-Glass, the Red Queen asserts: “It takes all the running you can do, to keep in the same place” – meaning that a business must continuously develop just to stay on equal terms with the competition, never mind get ahead.

“But the ability to lead the market and avert a future crisis can be achieved by making sure that the technology a company selects is scalable to the organisation’s future goals. The problem is that so many managers just want the ‘latest’, without planning for how the company should look in three or five years from now.”

Delany said the problem of non-scalable technology and poor planning around growth manifests in a variety of ways. It is not unusual, for example, for Designertech to encounter companies where the technology works well at head office but less efficiently at branch office level.

“People cope with non-scalable technology issues by increasing the level of human intervention to keep things synchronised, such as having staff conduct checks and double checks to verify things are correct. They keep on adding more and more staff, until it all becomes unwieldy and unable to scale with the growth of the business.

“It’s messy and inefficient and it can be fixed by applying true strategic vision along with expert advice. Know where you want the organisation to be in three or five years time and plan for that with what you do now, in terms of technology purchases and infrastructure.

“Sometimes the issue is a reluctance to spend money on expert advice, but it ends up costing more in the long run, or there is a tendency to take the easy option of asking friends and acquaintances for advice, instead of conducting rigorous research and exploring all the possibilities properly.”

Delany advised companies to define their organisation’s priorities and critical functions – with a view to scalability – and work from there.

“Expert, strategic advice on how to achieve the company’s objectives is critical, but be wary of being seduced by the perceived possibilities, potential or opportunities – start with achieving the important basics.

“By configuring your technology to your current situation, without planning for the future, you limit yourself to a certain size and end up missing the real opportunities as a result. Even human intervention as a coping mechanism will only take you so far,” he said.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Extended Warranties: Godfreys Fined For Agreements It Sold

    New Zealand Vacuum Cleaner Company Limited (trading as Godfreys) was today fined $58,000 in the Manukau District Court after earlier pleading guilty to 10 charges relating to its extended warranty agreements. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news