How to Manage Common Barriers when Implementing New Technology for Your Business
Since the pandemic created a shift to remote work and an increase in demand for online services, more business owners are realizing that adopting new technology is a must to thrive in the current economic environment.
In a 2020 McKinsey study, approximately 50% of organizations reported adopting new technology to help them realize new revenue streams, while 70% reported a positive impact on existing revenue. Additionally, 76% of businesses saw a positive impact on cost reductions. The McKinsey Global Institute also found that data-driven organizations are 23 times more likely to acquire customers, six times as likely to retain customers, and, as a result, are also 19 times as likely to be profitable.
But reaping the benefits is not simply achievable with a click of a button. There are many hurdles that businesses face when adopting new technology.
6 Barriers Businesses Face when Implementing New Technology
- Employees unclear on link between new technology and business value
Implementing new technology will affect employees first since they will be learning how to use it and do things differently, which may be disruptive to their regular workflows and require commitment on their part. A major roadblock can materialize if employees do not clearly see the value of implementing new technology, or how the technology may affect business goals.
Effective communication is essential to overcome this roadblock. Employees are stakeholders in the technology implementation process and it’s crucial to ensure that every employee involved in the process understands the new technology’s significance and value
- Investing in too many technology tools in the short term
Technology is an investment, and using this technology correctly for your business is a marathon, not a sprint. Additionally, not all tech solutions will yield results, or be compatible with its business operations. Committing financially to many digital tools over a short time can put a strain on a company’s budget, especially if it does not add to your bottom line.
Introducing too many new tools can also lead to change fatigue. Change fatigue happens when employees feel dissociated or disengaged from change initiatives, technological or otherwise, due to too many initiatives being introduced, or previous failed initiatives.
Communication and awareness of employee pain points and priorities can help companies avoid putting a strain on their budget and staff experiencing change fatigue.
It is helpful for businesses adopting tew technology to ask the following questions:
- What problems do you expect this technology to solve and for how long?
- How will you evaluate the ROI of this technology?
- Have you tried to solve these problems with other technology and if so, what are you looking to improve this time?
- Employees are unclear how to adopt new technology
One of the most common roadblocks when adopting new technology is employees being resistant to using it. Employees may be used to doing things a certain way or they may feel threatened that the new technology may replace their job.
To remedy these potential scenarios, it’s important to communicate the benefits of the new technology and the importance of training and skills development. Providing the necessary staff training will contribute to the smoother implementation of new technology as well as increased employee retention and improved morale.
- Consumers resist using new technology
User experience is a big part of why businesses turn to implementing new technology, so it’s important to pay attention to user feedback after launching new digital features or services. If consumers struggle to use new features, then it’s time to rethink the technology you’re using and what can be changed.
- Employees lack time to implement new technology
Adopting new technology can be disruptive to employees’ workflow. When employees are overloaded with their regular workload, they may not have time to learn how new technology works.
Setting clear plans and goals for implementing new technology will help ensure different work teams are aware of upcoming disruptions and can plan to handle them in parallel with their regular workload, thus avoiding burnout and change fatigue.
- New technology not aligned with business goals
Technology in business is not one-size-fits-all. Some technology solutions may work for certain business models while others won’t. This further highlights the importance of understanding how new technology adds value to your business; not just to guarantee adoption by employees, but to make sure you are not wasting valuable resources on a solution that does not align with your business goals.
It can also be helpful to consider industry-specific solutions that are tailored to the needs and specifics of your industry, thus eliminating irrelevant features that can be confusing for users and drain your budget.
- New Technology Benefits Brokerages
The benefits of adopting new technology for insurance brokerages are limitless. Technology can improve operational efficiency, increase employee productivity, utilize data availability for better business decisions, and provide top-tier user experience.
Learn About How our Digital Tools Can Benefit your Brokerage
Not sure where to start? At Trufla, our team can guide you towards technology solutions that best fit your business needs and your budget requirements
Contact us now to learn more.