The road to effective IT transformation

In the past, technology strategies and internal personnel were focused on basic maintenance and operations (i.e., keeping the lights on). However, times and technology have changed and effective technology utilization is now one of the cornerstones of successful business operations.

Technology solutions and strategies have immense potential to enable business transformation, directly generating key benefits including deeper business insights, enhanced efficiency, more effective cybersecurity measures, and elevated customer and employee satisfaction. But how do you know that your technology strategy is hitting the mark and effectively evolving to encompass emerging solutions and new business demands?

To understand how to develop an effective technology strategy, you must first define your objectives. Are you trying to enter new markets? Are you considering a merger or acquisition? Have you identified a competitive disadvantage or a potential opportunity you can capitalize on? An effective technology strategy can drive these and many other initiatives and inspire business growth. 

Working backward from your end goals can help you identify where technology can make a positive impact and take your business where you want it to go. In this guide, we present several examples of key technology solutions that can strengthen your business processes and build a competitive advantage. 

Artificial intelligence and emerging technology

Innovation moves rapidly, and new technologies like artificial intelligence (AI) are quickly changing how businesses operate. AI has transitioned from a “nice to have” to an essential element of business operations, insight and growth. Potential benefits of an effective AI strategy include more detailed forecasting and modeling, enhanced creativity within business processes, and stronger customer relationships. 

While it has tremendous potential to modernize insights and processes, implementing AI or any emerging technology is not without common challenges. For example, potential obstacles can emerge with process design and governance requirements; building and maintaining an effective data foundation that can produce accurate, actionable results can also be challenging. If these issues are not managed effectively, investments may not deliver on their expected value. 

AI is still gaining momentum as companies explore new use cases within their organizations, but new technologies will inevitably emerge that will also transform business operations. Many companies lack the internal experience with new innovation and the bandwidth to implement them to their full potential, emphasizing the need for external advice and support. 

Workforce and automation

Companies are always on the search for more effective and efficient business processes. In addition, hiring is an ongoing challenge in a continued tight labor market. Companies are struggling to find the right personnel, and retention has become more difficult as competition increases for talent. To sustain productivity and growth, many companies are turning to automation solutions to manage repetitive, manual tasks and enable internal personnel to focus on more strategic business functions. 

With an effective automation strategy, companies can alleviate staffing concerns, while increasing the efficiency and accuracy of key business processes. Automation can come in many forms, from robotic process automation to automation within finance, tax and risk management functions.  

Moving to the cloud

Cloud technologies are an extremely important element of a modern technology strategy. With the cloud, companies move files, systems and applications off-premises, increasing operational efficiencies and storage capacity while refocusing personnel that previously maintained internal systems and equipment to more strategic roles.

The cloud is a flexible solution, offering a host of potential strategies. Depending on specific business and regulatory needs, options include public clouds, private clouds and even hybrid solutions that can combine different clouds as well as on-premises resources.  

The cloud enables a higher level of access to data and files, enabling employees to be more productive no matter where they are working. In addition, a move to the cloud can significantly enhance security measures, with access to more robust cybersecurity tools and controls from cloud vendors.

In fact, 55% of middle market executives reported moving to the cloud as a result of security concerns in the RSM US Middle Market Business Index Special Report: Cybersecurity 2024, the highest level in the survey’s history. Most importantly, the move to the cloud for security reasons appears to be successful, as 89% of survey respondents said they felt more secure with their data in the cloud.    

Enabling a more effective security posture

Cybersecurity remains one of the most critical concerns for middle market companies. In fact, 28% of executives in the RSM US Middle Market Business Index Special Report: Cybersecurity 2024 said their organizations experienced a data breach in the last year, matching a high seen only once in the nine years of data collected by the firm. The threat environment has become more elevated as generative AI and other new technologies increase risk, emphasizing the importance of well-maintained protective strategies.

While vulnerabilities to cybersecurity breaches can never be completely eliminated, a company’s approach to technology can significantly reduce the overall threat landscape. Keeping up with modern technology tools can limit security gaps that can occur with outdated technology, especially as it approaches the end-of-life stage. Companies also must ensure that their ecosystems of solutions are properly implemented and integrated, removing potential vulnerabilities that can exist as data moves between systems.

In addition, a formal system update and patch management program must be in place to keep technology solutions updated and secure. In many cases, utilizing an external provider for patch management and system maintenance can increase performance and security, especially as the hiring environment for technical personnel becomes more challenging. 

Conclusion: Is technology helping your business progress?

Technology plays a crucial role in business success and reaching an environment of ongoing evolution and transformation is important. With the right strategy, companies can increase efficiency and productivity, protect sensitive data and intellectual property, and drive deeper insights that enable more effective decision making. However, a technology strategy that is dated or does not align with company goals can quickly result in lost ground to competitors.

As technology steadily becomes more important, it represents an opportunity for the chief information officer to become more of a leader within the organization. By building an effective technology strategy, the position can have a more direct influence on the growth and success of the business. 

The technology transformation journey with RSM

Deepening your perspective of your technology tools and strategy is important to get the most value from your investments and position your company for success. Are your solutions meeting your expectations and delivering the insights and efficiency you expect? As innovations rapidly evolve and emerge, you must periodically confirm that your technology team and platforms are performing to their potential and are aligned to organizational goals.

RSM can conduct a thorough review of your technology solutions and supporting IT department. Our experienced technology professionals quickly determine where you are and provide details into how you efficiently start or continue your journey to technology transformation and create more value with your strategy.

We review eight critical areas of your IT operations, with over 200 underlying evaluation areas for a clear vision of the effectiveness of your people, processes and tools. 

RSM’s assessment provides unprecedented visibility into your IT department, details its improvement opportunities and formulates a transformation strategy to better align with operational goals. In addition, we determine the overall maturity of your IT department, with clear recommendations for next steps to advance and evolve your technology investments and infrastructure. 

Ready to get a deeper understanding of your technology environment and your opportunities to increase productivity, efficiency, visibility, security and more? Contact us to get started today.