Connect Magazine Technology Fall 2016 - Page 3

Expand Your Data Sources to Improve Forecasting Digital Quotient: Weighing the Pros and Cons of a Tech Upgrade Advances in digital technology are forcing companies to adapt and integrate at lightning speeds in order to keep up with demand and competition. Before adopting the latest technologies, however, evaluate your digital quotient (DQ)— the measurement that highlights how digital technology can either create value or increase risk within your business—especially since installing and implementing new technologies will inevitably disrupt your company's current operations. Developed by Digital McKinsey (mckinsey.com), DQ assesses the four primary areas found to drive digital performance: 1. STRATEGY 2. COMPANY CULTURE 3. ORGANIZATION (STRUCTURE, SUPPORT, AND TALENT) 4. CAPABILITIES When considering a change, be sure to evaluate: ÎÎ the value of this change, such as its impact on improved or updated internal processes, consumer engagement, and decreased expenses ÎÎ the risks you face by not investing in new technology and practices, such as lost sales and decreased loyalty, or the potential effect of process disruption on performance and morale Remember: investment in technology may feel risky, and even prohibitive, on the front-end. Yet by taking a longer-term view, you'll be able to better assess whether that outlay of time and resources will help you to become the company you desire to be. Once you decide to move forward, invest in technology that aligns your business capabilities with the needs, wants, and behaviors of your customer base. Adapt too fast and you’ll outpace customers. Adapt too slowly and they’ll outpace you. But hit it right, and you'll build a loyal customer base that leads to increased sales and revenue. As a business owner, forecasting is something you do naturally. Your company's past sales performance can certainly inform those decisions. Yet it's just as critical that you collect additional data when assessing your company's readiness for tomorrow. Expanding beyond your triedand-true sources can help you stay fresh in your forecasting, a