People are currently living in what some of them might describe as a ‘renter society’. In a nutshell, this phrase is used to describe the popularisation of consumers purchasing goods and services by making regular incremental payments, instead of covering the total cost in full with one large lump sum. If you own a smartphone or a car, chances are you’re probably paying for at least one of the two through a very similar payment model.
There are numerous benefits to models such as these. First, and most obviously, it doesn’t burn a hole in any wallets or purses, with smaller and more regular payments generally being much easier to manage. And secondly, it means that consumers can get their hands on the products they desire much, much quicker than before.
Having taken consumer markets by storm, these renter society sensibilities are slowly creeping their way into the world of business. This has the potential to shake up the industry and change the ways in which companies implement, grow and update their digital infrastructures.
Heads of digital and IT departments have long had to deal with a number of obstacles when attempting to make upgrades to their infrastructures. Some might struggle to gain the necessary approval from senior leadership teams, while others might lack the team necessary to undertake such a major task. There will also be those that can’t financially afford to put the necessary updates in place.
On the flip side, even if businesses are cash-rich and fully able to update their infrastructures, they need to be able to guarantee that they can match their investment costs with business benefits, while also future-proofing their business and ensuring they are agile enough to maintain this status for years and decades to come.
This problem is amplified yet further by the increased focus on cyber security. Following a spate of high-profile attacks on businesses in the past year or so, digital and IT managers are making much more concerted efforts to ensure their businesses remain safe and protected.
However, with the problems highlighted above coupled with a lack of awareness among board members and senior leadership teams, many managers are struggling to progress as quickly as they would like to.
Another struggle for IT managers is the administrative work that comes with working alongside so many different suppliers in order to procure the goods they require. They might be in contact with various vendors just for their hardware needs, for example, and another one for anything software-related.
Juggling all of this admin work between various points of contact can be difficult for even the most competent of IT managers, and can often lead to unnecessary complications down the road.
Working alongside a trusted digital services provider to procure digital equipment using a payment-over-time model can alleviate all of these problems, however. The most obvious benefit, and one that has been fully realised by consumers, is the fact there is no need for significant capital expenditure.
Suddenly, IT and digital heads no longer need to rely upon huge one-off payments for the goods they require; as long as the business can manage much smaller and more frequent payments over a set period of time, they can begin to repair and rebuild. This also naturally makes it a much easier proposition to pitch to the senior decision makers in a business.
Secondly, it enables businesses with an unprecedented level of agility, allowing them to operate and make decisions more proactively. If a business is using a payment-over-time model to update its digital infrastructure and wants to make necessary upgrades to strengthen its security defences, for example, it doesn’t have to sit around for months until it has enough money saved up: it can go ahead and make those upgrades instantly, without even needing to consider finances. This added speed could be the difference between staying protected and suffering from a crippling cyber attack.
Lastly, some service providers are capable of taking the admin work required from all suppliers and delivering it your business all at once, which simplifies the overall admin process and minimise the amount of communication required in the process.
What’s more, because of the rolling contract, businesses can continue to upgrade their systems and infrastructure in-line with the latest trends, future-proofing their operations for years to come.
This shift towards a payment-over-time future is already well underway, and so IT managers must quickly adapt if they want to stay ahead of the competition. By doing so, they will see their ways of working transformed entirely, for the better.
Sourced by Chris Labrey, managing director UK & IRL, Econocom