It is not uncommon for IT managers to encounter resistance from the board when they request funding to invest in new technologies in the company. Often, the value of adopting these new features is pretty obvious to the entire tech team, but it's not so clear to those who are experts in the field.
And when this investment in new technologies is essential for the modernization and competitiveness of the business, it is the role of the IT manager to triumph in this internal conflict and manage to bring resources to the area. But how to do this without creating friction that can be negative for the work environment?
In this article, we separate five tips to help managers who need to persuade directors and investors to win investments in innovation in the company. Check out!
1. NEW TECHNOLOGIES WILL EMPOWER VALUE GENERATION
Start the persuasion by explaining how the technology that needs to be adopted in the company works, without focusing on the technical details, but just describing how it can enhance the generation of value in the business.
This is a little simpler when the technology is something incremental: if the company acquires faster machines, for example, the time spent on processes will be reduced and productivity increased.
But when the new technology is something truly innovative and that will have a deeper impact, modifying processes and even extinguishing some, this explanation can become more complex.
If that's the case, get ready for a more didactic presentation on how value creation is done in the company today and how it can get much better when new technologies are adopted.
To prepare this argument, remember that you will need to understand what the managers' vision of creating value in the business is and develop the presentation based on it.
2. EXPENDITURE ON NEW TECHNOLOGIES ARE INVESTMENTS
One of the reasons that may discourage management is the high cost of new technology. Often, to adopt a better solution for the company, it will be necessary to rebuild part of the existing infrastructure, which can mean a high expense.
One way to avoid a rejection from the board based on the values involved in new technologies is to present this cost as an investment, not an unnecessary business expense.
Costs are representations of expenses with maintenance of what the company already has. Some costs are essential for the operation and need to be assumed by the company, but others can be avoided to generate savings.
If the company's management sees the technology as a cost, it is unlikely that they will direct money to it.
But, unlike a cost, an investment is something that will pay for itself in the long term, adding value to the business and reducing the real expenses of the operation. And typically, the adoption of an innovative technology falls into this category.
Therefore, to justify a high initial value, explain that this investment will be a future savings, which will maximize the productivity of some of the company's activities.
3. BACKGROUND YOUR ARGUMENTS WITH DATA
Whenever you negotiate with the board, come armed with as much data as possible. Good managers are those who make their decisions based on numbers and not on intuition or emotions.
Therefore, there is little point in making a speech full of emotion to try to convince the board of the need to modernize the company. Come up with numbers, estimates and metrics, which are the most decisive factors in the decision-making process.
There are no arguments against facts, and data is the most raw and solid way to present one. If there are numbers that indicate the need to adopt a new technology, make a point of using them.
Even if they are estimates based on future projections, the data is a clear way of demonstrating the need for something.
You don't have to be a tech expert to understand the numbers, and data-based reasoning is far more convincing.
And if you can't find data that justifies the adoption of new technologies, it's worth reflecting on whether they are really necessary before taking the proposal to the board.
4. CLARIFY THE TECHNICAL DETAILS OF THE TECHNOLOGIES
This is a resource that shouldn't be used as a first convincing alternative, but if there's still resistance after all of the above, it's worth getting to this step.
As mentioned earlier, the main reason the board turns down a suggestion of a new technology is a blurred understanding of what this investment represents for the company. And if, even with good arguments and data, this position does not change, perhaps it is time to give a more in-depth description of the technical details of these technologies.
An explanation that clarifies the technical details of the technologies being suggested to managers may seem tedious, but it may be necessary to deepen their understanding of this proposal.
In addition, exposing technical details can also be interesting to draw attention to the specialized knowledge of the person making this presentation.
Normally, good managers are able to recognize and respect the authority of an expert, seeing value in what he says, even without understanding all the minutiae of the subject.
5. HIGHLIGHT THE IMPORTANCE OF NEW TECHNOLOGIES FOR BUSINESS SURVIVAL
The final appeal of this type of argument is valid when the proposed investment is crucial to the company's future success.
If this is the case, put on the table not only how this technology can be useful for the business, but also how it will transform the competition, implying that being left behind can decisively harm the competitiveness of the business.
Cite examples of companies that were blind to change and lost their market dominance to other innovative solutions, such as what happened to Kodak when camera phones hit the market, or the fate of Nokia and Blackberry after the launch of the iPhone.
If it is really necessary to adopt these new technologies to ensure the survival of the business, use everything in your power to prove it to the board. And if the proposal to invest in new technologies is still rejected, it will take time to prove who was on the right side of that argument.
And now that you've learned five reasons to justify the need to invest in new technologies for your company's directors, take advantage of the momentum to like our pages on Facebook e LinkedIn and stay on top of more content like this!
