In this economy, when the pot -- meaning revenue and profit -- for many companies isn't filling up as fast as it had been in more plentiful years (in some cases, getting empty fast), it can seem counterintuitive to consider putting the little cash you get back in the pot.
But consider putting money back in the pot to shore up IT without emptying the pot. To do that, you must consider the "greenfield."
Stop reading, just for a minute, close your eyes and picture an empty, green field. Nothing's there. Maybe you want to plant trees or a garden, maybe you'd like to build a house. OK, open your eyes and resume reading: This type of thinking is what's know as "greenfield opportunities." In a simpler term: strategy.
Think of greenfield opportunities as a natural approach to "organic" IT spending and resource growth. Here are some key greenfield opportunities you might consider putting money back in the pot for:
- Computer-processing environment development activities lacking constraints due to any prior architecture (updating existing architecture)
- Ramping up help-desk using existing policies and procedures (can be done on paper, requires no expenditures)
- Building snap-on applications, which can be snap-on applications or downloadable, on-demand SaaS apps offered by other companies
- Simplifying -- clearing the field and deciding what costly "weed" expenditures can be cut or if overhauling the processing environment will ultimately help you grow in the long run
The key thinking here is to ponder these items as "natural" approach to "organic" IT spending and resource growth that can come from the money set aside for capital expenditures as well as a smidgen of your profits.
While, investing in technology can yield a return, reinvestment in technology can yield growth and ultimately lead to, ahem, greener pastures.
Posted by Jabulani Leffall on February 14, 20110 comments
Can you imagine an IT service firm, in this economy no less, turning down new business? Sounds counterintuitive, risky and even stupid doesn't it?
But that's exactly what some MSPs are doing. Why? Because they've found an industry vertical that works for them and are going full bore to grow into that niche.
One example is ETG, a service provider out of Birmingham, Alabama, which has claimed it has an actual glut in customer growth that has left it unable to respond to all business that comes its way.
For that reason ETG has declined all IT-related work outside of t its healthcare vertical. In essence, ETG has become a full-fledged healthcare MSP. The service provider even sees 2011 projected growth remaining as strong as its 2010 annual growth.
Going even deeper inside the health vertical are people such as Micah Jones, CIO of Phoenix Ortho which specializes in IT services orthopedic medical practices. Jones says understanding a business inside out leads to natural upselling, repeat customers.
The same can be said for IT service shops that work solely with insurance groups or financial service providers or community banks, both of which, like healthcare, are showing steady growth and are at the forefront of data migration, storage and information processing technology shifts.
While it may be a risk to put all of one's eggs in one basket, by sticking to an industry vertical and becoming almost an appendage of that vertical from an IT standpoint, priorities won't get scrambled.
Posted by Jabulani Leffall on February 14, 20110 comments