Creating a Technology Investment Strategy

Trapp himself was in triage mode. His IT work, after all, wasn't even his full-time job, fund-raising was. A follow-up taskforce meeting in May proved more fruitful. All the members showed up and, at Morochove’s suggestion, they produced a technology inventory. They ranked DTH's existing software and hardware on quality and utility, and identified the technology that different department heads wanted for the future. In the process, everyone developed an appreciation for their colleagues’ needs.

To further flesh out priorities, Trapp pushed forward with another task-force assignment — a mock-budgeting exercise. Members were given a dozen tokens that they could spend on 43 potential projects they had identified in the technology inventory. The four projects that received the most tokens would cost, according to Morochove, an estimated $60,000. They were:

• Developing a database for computerized record keeping of student data
• Creating network interfaces to unify various department databases and allow for mobile communications with the touring company
• Installing a video and electronic surveillance system for building and parking-lot security
• Building an online digital library to make DTH historical archives, including video recordings, available for student research and marketing purposes

Success Insight?

At last, it seemed, Trapp and the taskforce were making real progress, laying out a roadmap with clear goals and measurable results. Then, in a matter of moments, or what seemed like moments, the entire tech initiative was derailed. DTH's  finance director announced, in no uncertain terms, that the entire process was a waste of time. He had no intention of replacing his outmoded financial software and wasn't about to earmark funds for other new technology.  

“I wasn’t surprised by his reaction; I was surprised by how vehement he was,” Trapp said. “He said we’ve come up with these plans before, and they went nowhere….I do think it has a lot to do with his comfort level with technology. As the financial gatekeeper of the organization, in his mind, it’s something we can’t afford to look at.”

In the end, Trapp was left with only the top item on his list — the school database — if he could get it built for only $1,000.  Thankfully, the outside tech firm that handles DTH’s everyday computer maintenance found someone to build the database pro-bono. “The school database, which turned out to be our number-one priority, will be the only new project that DTH will tackle this year,” Trapp wrote in a status report to Morochove.

Hard Lessons

DTH’s plan remains unrealized, in part, because its board did not see its immediate importance. That lack of foresight is common at many small companies, says Julian Lange, a Babson College professor of entrepreneurship and public policy. “Technology people should be part of your strategy team,” says Lange. “If they understand where you're trying to go, they can help you get there faster, cheaper, and more efficiently."

Another mistake that Trapp and DTH made: While the task force put together a comprehensive list of the most-pressing projects, they had neither the time nor knowledge to quantify how much productivity savings or added revenue would offset the added cost. Without these hard figures, the CFO was unlikely to be persuaded to change his mind.

 In addition, Trapp's timing was not opportune. The tech initiative was completed right as DTH was in the middle of its budgeting process. Had Trapp wrapped up the plan eight weeks before final budgeting, he would have had time to articulate the long-term value of the proposed technology. 

Trapp hopes the three other top initiatives can be undertaken next year if DTH’s financial picture improves. Meanwhile, he plans to seek equipment and software donations from Dell Computers, IBM, Hewlett-Packard, Cisco, Microsoft, and Sony. He’s already begun seeking corporate sponsors for the digital library.

While disappointed he was unable to make more progress, Trapp does have one reason to celebrate: If DTH's budget picture improves next year, he has a technology development plan ready and waiting to be implemented — which is more than most small businesses.