September 2008: A Note from Jeff Mack
Technology Point/Counterpoint
This column is all about the bottom line - ways you can use technology to improve performance and profits. Last month we tackled the challenges of keeping your mobile and remote employees productive by using the right technology tools, while keeping your $100 bills in your wallet at the gas station.
A month has passed since that discussion, so it’s time for a progress report. I mentioned that I bike (mountain bike, of course) to work occasionally. In the last 30 days, I completed the 26 mile commute 13 times for a total of 338 miles. Using the average price of gas and the mpg for my vehicle (dismal I know), I calculate saving approximately $110 on fuel during that period. That’s a pretty good bonus to the bottom line, but of course it is not without ramifications. One is that I spend about 30 minutes more per day commuting than normal and another is that I take more showers. This all got me thinking about the point-counterpoint arguments surrounding the use of technology.
Low Tech vs. High Tech...
In this isolated example of the low tech option (bike) vs. the high tech option (car), the low tech alternative offers some desirable benefits; namely it saves money by consuming no fuel, creates no pollution, and promotes a healthier life style. (I understand the argument is a little harder to sell come the winter months).
Pursuing the lifestyle thought a bit further leads to some other interesting revelations that make me scratch my head. For instance, did you know that in this country, $63.5 billion is spent on medications for high blood pressure (latest figures 2006). How much do you think is spent utilizing pharmaceutical treatments for high cholesterol, or a myriad of other diseases? You guessed it, it’s in the stratosphere. These high tech solutions are very high priced responses to problems that might be more effectively treated with low tech approaches. And I say might because I know that some clearly would not qualify.
How often does the health care giver recommend a prescription vs. proper diet and exercise therapy? I realize that it is likely not an either / or situation; however if we all had incentives to exhaust the low tech options first instead of grabbing for the quick fix, what sort of an impact would that have on the planet and its inhabitants? All too often, it seems as if our quick-fix easy button lifestyle causes us to choose what may not really be in our best interest.
Most of us are acutely aware of ever spiraling health care costs. Much of this can be directly attributed to expensive R & D (high technology). On the other hand, the costs of many drugs are actually being reduced as a result of high technology breakthroughs in discovering and producing generic drugs. As patents begin expiring on more and more drugs, we will see this trend continue. Advances in information technology are driving down costs associated with federal compliance, managing medication safety, and prescriptions systems.
As indicated above, there is cause for optimism in being able to positively influence some costs through the use of technology. This is countered by equal amounts of concern when we learn that drug utilization continues to climb. The latest figures indicate that on average drug utilization in this country is expected to increase 2 to 3 percent per annum over the next three years. Technology is not going to reverse that trend. However, here again the low tech approach might be the best answer. What’s that, you say? Why, the power of choice of course. Your choice. Your mind. Your power. Your bottom line!
Or Low Tech + High Tech
As in most things, technology is a great enabler when used properly and coupled with sound low tech practices. The same can usually be said when we choose to deploy technology in our, and our clients’ businesses. Great technology plus bad practices does not make for a happy marriage. Old technology plus good practices probably makes for a lot of extra work and a good, albeit costly, deliverable. Is the technology the right one to use? Does the business solution address the specific needs well, and are the returns sound? What good business practices need to be in place to take full advantage of the technology? These are hard questions we ask, and help clients find the right answers. Great technology plus sound business practices, now that’s a thing of beauty that will just keep on paying dividends to that all important bottom line.
