”The only way to make sense out of change is to plunge into it, move with it, and join the dance.” — Alan Watts

Business owner leaders fear of change.

How technophobia in leadership leads to bad IT decisions and how to fix it!

How can business leaders reduce their fear and reluctance to embrace technology change and digital transformation?

As a vCIO (Virtual Chief Information Officer) supporting business leaders in London, I often encounter a widespread issue: technophobia, or the fear of technology and change.

This fear is not exclusive to elderly leaders; it spans across various ages and experiences in the business world. My role bridges the gap between management teams and technical departments, offering a sense of sanity instead of overwhelm and holding your business back reducing profitability. You may be looking for a decrease in operating costs and digital transformation has the potential to do this if done right!

The Pace of Technological Change

The rapid pace of modern technological development can be daunting. Take, for example, the advancements in AI technologies like OpenA's ChatGPT. It's understandable for business leaders, especially those who have witnessed decades of technological evolution, to feel apprehensive. Technologies that were once cutting-edge can quickly become obsolete. In the UK, for instance, the use of fax machines and checks has drastically declined. The reluctance to abandon familiar technology stems from a comfort with existing systems and a fear of the new and unknown. While it seems like common sense to stop using obsolete technology for example the NHS banned the purchasing of fax machines in the health service from 2019, and ordered the NHS to phase out the outdated machines by 31 March 2020. People loved their confidence in the reliability and security of faxing, despite sending the data in plain text which could be easily read in transit or by whoever received it the other end as it has no security whatsoever. There is a strong reluctance to replace outdated systems which needs to be recognised by the leadership team.

Digital Transformation can improve the performance of your business operations if done well!

Impact on Profitability

An essential role of a good business leader is not to let this fear hinder necessary change. Delaying the adoption of new technologies can directly impact the profitability of a business. Most revenue generation today is tied to new advanced business software, rather than obsolete, technology. Therefore, investing in new technology at the right time is crucial. Although new technology may initially seem less reliable, It's very important to know that early adoption positions a business to capitalize on emerging opportunities.

The Pitfall of 'Shiny Object Syndrome'

A common trap is the 'shiny object syndrome' - acquiring the latest gadgets without understanding their use or impact on the business. This behaviour can add unnecessary frustration, give bad experiences and detract from areas where investment is genuinely needed. As a vCIO, I advocate for creating a technology budget plan that prioritizes spending effectively, streamlining existing systems, getting better use of your current technology and avoiding wastage on transient technological trends.

Business Strategies to Reduce Technophobia and Enhancing Efficiency

Addressing technophobia in business involves several key steps:

1. Strategic Technology Investment: Focus on stable and well-supported technologies rather than just the latest innovations aligned to your business plan.

2. Effective Technology Utilisation: Ensure that technology is used effectively to streamline business processes, rather than adhering to outdated methods out of habit.

3. Budgeting Time for Learning: Allocate time for learning and adapting to new technologies. This investment in time can significantly enhance productivity and reduce frustration, closing the digital divide.

4. Lifecycle Management of Technology: Implement a lifecycle management approach for all technology used in the business. This practice ensures that technology is replaced before it becomes a liability, contributing to a more profitable and efficient operation.

5. Balancing Risks: Understand and manage the various risks associated with technology, including cybersecurity threats and technical debt. For example, Cloud Computing is more reliable and safer then in-house technology

6. Disaster Recovery Planning: Prepare for the unexpected with robust disaster recovery plans, ensuring business continuity in various scenarios.

7. Embracing Change: Recognize that fear of technology change can lead to missed opportunities and reduced competitiveness. Adopting new systems and technologies can be essential for staying relevant in a rapidly evolving market.

69 per cent of UK business leaders believe executive leadership positions should be filled by people with technology career backgrounds in order to be successful.

Source: freedomafterthesharks.com

As a vCIO, my mission is to demystify technology for business leaders and your board of directors ensuring that technology investments translate into substantial returns in business growth. For every pound spent on technology or advisory services, the aim should be to generate a tenfold return. Embracing modern technology, understanding the implications for your business with the changing digital landscape, managing its risks effectively, and continually adapting to change are crucial for business success.

If you're a business leader grappling with technophobia or seeking to optimize your technology strategy, feel free to reach out.

Let's work together to ensure that your technology investments are not just cost-effective, but also pivotal in driving your business forward.

Book a cal for a quick chat!