Does Technology Really Replace Employees?

Posted by admin on March 5, 2010 under Process Improvement, Technology | Read the First Comment

This week I was watching an early business news show on which one of the announcers made a comment about how companies had cut costs so deeply in order to survive, they were concerned about hiring employees back too soon. Profitability is still somewhat elusive, and the cost of hiring staff (especially considering the high costs of health care benefits) poses too much of a risk on the tentative nature of our corporate recoveries.

Instead, according to the reporter, companies are turning to technology investments to streamline and optimize their performance rather than rely on the “human factor”. After all, technology does not require a health plan. Or, does it?

I certainly understand the apprehension about hiring - the economic realities are still too uncertain to invest heavily in staff. However, it is just as imperative that organizations fully consider the significant investment that will be required when implementing or upgrading technology in an organization.

Even a moderate upgrade requires a significant investment in hardware and software resources, as well as human capital resources. And, without staff involvement in the project, success may truly be challenging.

One way to ensure success of your next technology project is to conduct a thorough analysis of your needs. Start by understanding your current environment, and what you plan/need to achieve. An in depth understanding of your people, current capabilities, technology, and your expectations is critical in determining where to invest. After all, if you make a bad decision by rushing into implementing technology, your technology will require a health plan of its own - a costly one in terms of time, money and wasted opportunity.

Several years ago I wrote an article on this topic. I think the ideas are still relevant and timely.

I’d like to hear your comments on this subject.