There’s often an expectation that technology change brings cost reduction. We often see promises of big cost savings, or amazing KPI improvements simply by changing tech. The reality is more nuanced. In this episode, we focus on why reducing costs isn’t always possible, and shouldn’t be your primary goal.
Watch the video
Listen on your favourite player
In this episode of Inside Commerce, James Gurd and Paul Rogers discuss the critical decision-making process surrounding technology investment versus viewing technology migration as a cost reduction opportunity. They emphasize the importance of focusing on value rather than merely cutting costs, exploring the nuances of licensing fees, the significance of building business cases to justify technology investment. The conversation also highlights the need for customisation in SaaS platforms and the importance of planning for cost neutrality in long-term strategies via offsetting existing costs.
Key takeaways
- Investing in technology should focus on value, not just cost reduction.
- Understanding the nuances of licensing fees is crucial for accurate budgeting.
- A strong business case is essential for technology change.
- Positioning your investment request effectively can lead to better outcomes.
- Marketing spend should be viewed as an investment in long-term growth.
- Cost neutrality can be a strategic goal in technology investments.
- Customisation may be necessary to achieve desired customer experiences.
- Avoid standardised approaches that limit differentiation in SaaS.
- Consider the total cost of ownership (TCO) when evaluating platforms.
- Evaluate where costs can be offset to support new investments.
Key discussion points
- 00:35 > Investing in Technology vs. Cost Reduction
- 03:30 > Understanding Value Over Cost
- 06:50 > The Nuances of Licensing and Fees
- 09:30 > The Importance of Business Cases
- 12:30 > Positioning for Investment
- 15:45 > The Role of Marketing in Technology Investment
- 18:30 > Cost Neutrality and Long-Term Planning
- 21:40 > Customisation vs. Standardisation in SaaS
- 24:30 > Key Takeaways and Final Thoughts
Want to suggest a topic or guest for a future episode? Contact us via the website or on LinkedIn.
