Craig Scott, CEO and president of FUUZ, talks why several SMBs begin their technological journey with standalone applications.
Small and medium-sized businesses are experiencing “information overload” as a result of a deluge of data from social media, marketing, and other sources. Yet when it comes to purchasing the necessary technology to make sense of it, “there are a plethora of jargon to wade through,” adds Scott. Several suppliers “are more interested in selling you software than collaborating with you to ensure your future success.”
“One-trick ponies” are software “point solutions,” or applications built to do a particular function, according to Scott. When they attempt to expand, businesses that were enticed by the promise of “intuitive” and “easy-to-use” solutions are left with obsolete technology. Additionally, point solutions frequently result in data silos that cannot be shared throughout the enterprise. Ultimately, “SMBs are accumulating data faster than they can act on it. It is difficult and aggravating.”
The largest mistake a small to medium-sized business can make when acquiring software is doing so “without a clear picture of your future state,” according to Scott. Focusing on immediate issues and constrained in their ability to invest in technology, smaller businesses sometimes fail to consider their long-term requirements. That puts them on a path to failure right from the start.
Another frequent error is regarding an enterprise resource planning system as a comprehensive solution. Scott explains that many ERPs are only a collection of point solutions that have been cobbled together, leaving customers unable to consolidate data throughout the firm.
Scott advises SMBs to use the following three guiding principles when procuring technology: Do not invest without a strategy in place. Concentrate on a platform-based technology stack strategy. And don’t overlook software-as-a-service (SaaS) apps, which are superior in terms of security, usability, and affordability, according to him.