Talking tech
Let's talk information-technology upgrades.
We know. Your eyes are already glazing over, your jaw slackening, your hand poised to turn the page.
Figuring out your company's IT system is one of life's great mysteries. It's an even greater source of frustration. But local experts insist even the layest of laypeople can learn to determine when their systems require improvements, and more importantly, how to prioritize on those upgrades to avoid blowing out the company's budget.
So how do you know when you need to reevaluate your information-technology design?
First, slow or "jerky" computers often highlight the need for enhanced computer or server systems, said Toni Thorburn, chief executive officer of Aspen Communications in Las Vegas. If your computer has started demanding several minutes to execute a command, or if you jab at the tab key for 20 seconds before anything happens, your setup could be overtaxed, Thorburn said.
Edward Kolenda, senior project manager at Gifford Electric and Technologies in Las Vegas, said slow computers aren't merely annoyances -- they're cash leeches. If every employee spends an additional five minutes a day pulling up e-mails or printing documents, the cost can add up to tens of thousands of dollars a year.
"Slow networks are major profit killers, and they're also motivation killers," Kolenda said. "Everyone gets frustrated when things don't happen. And they're not only taking that extra time, but they can't focus as well on their work.
"The most important thing to look at is productivity," Kolenda added. "If things take a long time to do, and you feel things are slow, they probably are."
Observers pointed to other clues of an ailing IT layout. Maybe you've tried downloading new software and the computer tells you it can't support the program, or you've hit "save" only to find you're out of disk space.
On the telephone side, Thorburn still sees plenty of businesses looking to switch from voice mail provided through a phone company to in-house voice mail on their own phone systems, and many of them find their existing technology can't support the functions they're seeking, she said. So any time your information technology can't serve your needs, you should weigh some changes.
For big companies, deciding on new technologies is less about specific performance issues and more about return on investment, said Mike Beardslee, president of Las Vegas consulting firm IT Strategies.
"Slow PCs probably wouldn't be a sign of needing improvements for large companies," Beardslee said. "They're really looking more and more at how to use IT expenditures to help the bottom line."
Experts advise businesses contemplating new IT systems to take the same steps, whether it's to speed systems or boost productivity.
Consultants say you should consider, well, retaining a consultant.
You'd expect them to say that, but in this case, they might have a point, especially if your IT skills are limited to finding the doohickey-thing that makes the computer turn on and do other cool stuff. Calling in an expert isn't pricey. An initial consult doesn't have to cost more than about $200, and some companies, such as Aspen and Gifford Electric, perform first looks at systems for free. In just a few hours, an IT analyst should be able to point to a few key areas you should consider improving, and give estimates on costs.
"I quiz people on what drives their business and what their competitors are doing," Beardslee said. "The business owner knows more about his business than anyone else, but he may not be technical, and it isn't particularly costly to talk to someone who is technical."
Whether you call in help or decide to figure it out on your own, you should aim to understand what IT areas your particular business should emphasize and determine when you'll need a systemwide overhaul.
Pinpointing your IT focal points can be as simple as evaluating your company's functions, Beardslee said. Is your industry volatile, with constant changes in the flow of data? Then you should think about instituting data backups, with companies that hold off-site copies of important information such as accounts-payable. If you own a small business with a steady informational flow, you might need data protection just once a week. A flower shop that tracks sales weekly won't need as much help as a construction business that fields ever-changing architectural drawings. An Internet retailer selling items to the public will need a comprehensive Web site, while an accounting firm might opt to invest tech resources in a different IT area. Deciding your IT must-haves and don't-needs can help you prioritize improvements as you can afford them, Beardslee said.
And before you go ahead with that systemwide makeover, get at least three opinions. With a few modifications, you could get a few extra years out of your current system and put off the major overhaul. Thorburn has worked with businesses that sought a second opinion after one consultant told them they needed to replace all of their IT components. In many cases, she's been able to tell them that a few small modifications can enable them to keep what they have. The cost savings can be considerable: Outfitting a small office with cabling, five computers and a phone system can run roughly $18,000, so be sure the expense is essential before you make the investment.
There's one exception to waiting until it's absolutely necessary to install new IT.
Companies already planning a big transition -- be it to new office space, to a bigger staff or to a smaller operation -- often find it easiest to go ahead with new IT systems, even if they're not essential, Thorburn said. The business is evolving anyway, and it can make sense to make big changes all at once. A relocating business will find its operations disrupted regardless, and there's less downtime to installing fresh IT in the new office, because the existing system might have to shut down for a day or two while technicians move it. Also, planning for new technology is easier in advance, rather than in the midst of crisis.
"It's much easier on a business to be proactive in making an IT investment than it is to wait until something crashes and you go out of service," Thorburn said. "Then, you're making decisions in a reactionary mode, instead of bringing in someone who can assess what you have and make recommendations based on where you want to be. Far too many times, we've been called in on a reactive basis, and it's not a happy place for any company to be."
This story first appeared in the Business Press. Jennifer Robison writes for the Business Press' sister publication, the Las Vegas Review-Journal. She can be reached at jrobison@reviewjournal.com or 380-4512.
THE ESSENTIALS
Here's a handful of basic IT issues consultants say every business should consider:
Ensuring security. Small businesses in particular tend to ignore protection for their computers and networks, often because they simply don't know they need it. If you're connected to the Internet in any way, shape or form, you need to update your antivirus programs regularly. It can cost $40 to $50 a computer to set up an antivirus program that will run frequent scans and update your safeguarding.
Streamlining telecommunications rooms. The biggest problem IT consultant Edward Kolenda sees is tiny telecom closets that can't properly contain all the cables and wires that connect IT systems. Cramming too much equipment into a closet can cause catastrophe, because tech components need to be kept cool, said Kolenda, senior project manager with Gifford Electric and Technologies in Las Vegas. An overloaded closet can heat up to more than 90 degrees, and that in turn can destroy sensitive network systems. Network crashes become even bigger problems for the legion of companies failing to perform routine data backup.
Backing up data. An overheated telecommunications closet isn't the only disaster that can take out a company's business functions. Fire, flood, hacker attack -- all can bring operations to a grinding halt. Backing up your data through making additional copies doesn't need to be expensive. Mike Beardslee, president of IT Strategies in Las Vegas, said owners of small companies that don't need daily backup can simply slip a compact discs into their computers, save all data to the disk and take it with them when they leave the office.
IT consultants also offer off-site backup services for companies that need to store lots of data. Aspen Communications, for example, will store copies of clients' data in their offices, and they keep a second backup outside their office beyond that. The cost: $25 a month for up to 5 gigabytes.
Maintaining data networks and equipment. Businesses churn out volumes of information, and failing to weed out some of that data can create inefficiencies that slow systems. At least once a month, have a technician add, delete or modify network files and check out equipment for its functionality. It can cost $150 to $1,000 a month, depending on a company's size and the complexity of its operation, Aspen Communications Chief Executive Officer Toni Thorburn said.
Planning for growth. Kolenda calls it future-proofing -- looking at your company's potential needs for years to come and overbuilding infrastructure slightly to accommodate those coming demands. Too many businesses build the bare minimum for what their operation needs today, installing telecommunications closets that can house only the IT on hand right now. When you future-proof, you make pathways for later functions. That means including additional closet space for extra equipment and making sure your conduits are sized up to handle more machines as you need them.
Future-proofing can add 10 percent to 20 percent to an IT system installation today, Kolenda said, but you're giving your business "the potential to put things in later at a very low cost."
"To retrofit new pathways can cost astronomical amounts of money, especially if you're operating around the retrofitting," he added. "When people don't future-proof their rooms, it's like they don't want to pay for growth potential."
Powering up. Keeping the computers and phones running smoothly isn't just a matter of finding the right equipment and software. Find a technician who can tell you whether your building has enough electricity to keep things on. Kolenda regularly comes across companies with inadequate power. An electrical outlet in a commercial building will overload once it has 20 amps of electricity coursing through it. The typical computer setup uses 4 amps. And an average office today might have 20 or 30 cubicles clustered at its center.
"You get eight people in a row, all at four amps -- that's how fires start," Kolenda said.
