Where will companies spend their budgets in 2024? On software, it seems. Gartner expects enterprise software spending, which totaled almost $800 million worldwide in 2022, to increase more than 11% in 2023, after increasing almost 15% in 2021. Modern software gives companies abilities and advantages they’ve never had before, and it’s increasingly becoming a competitive differentiator as tech-savvy companies rise to the top of their industries.

It’s almost a foregone conclusion, then, that 2024 budgets will include substantial investments in software, probably greater than the year before. But now that software is both vital for operations and a major line item on the budget, it’s important to invest wisely and implement carefully – otherwise, the software could be an underwhelming waste of money at best or a total disaster at worst. The stakes are high for not embracing technology – but there are also risks associated with embracing it the wrong way.

Whether your close is coming up at the end of June, or you still have a few more months to finalize your decision, it’s never too soon to start considering where and how to plan for your technology. After all – so much depends on getting it right! Find out how to effectively plan next year’s tech spending:

  1. Evaluate Existing Technology – What are the strengths, weaknesses, and remaining lifespan of the software currently in place? Is it meeting of the company’s needs, especially after the shifts caused by the pandemic? Be as honest as possible, both about what’s working and what’s not.
  2. Forecast the Future – How will the year ahead (and beyond) affect tech requirements? Are new technologies necessary to achieve strategic goals or keep a competitive edge? Compare what it takes to thrive or compared to the tech already in place.
  3. Solicit Employee Feedback – How do employees who spend every day using different systems feel about the pros and cons? Likewise, how does the IT team feel about the security and scalability of the IT infrastructure? The people closest to technology have an essential perspective on what should stay or go (but not necessarily the final word).
  4. Create a Business Case – In what way will tech investments make the company more productive, efficient, innovative, or profitable? And in what way will keeping the existing tech put the business at a disadvantage with customers or competitors? Any tech decision must have a compelling business case.
  5. Vet All Vendors – What vendors offer the technology, support, and price structure that fits the business case from above? Is it better to work with one vendor or select best-in-class solutions from multiple vendors? Vendor selection matters just as much (or more) as selecting what kind of software to implement.

To work systematically through these steps and make the smartest tech upgrades possible, Dean Dorton is here to help. Contact us to get started before the year’s over.