Incomplete integration

A second pitfall occurs when the technology is a good fit for the business, but ultimately fails to deliver the promised benefits. Maybe it doesn't hold up well to real-life workloads or employees find it less than intuitive and subsequently inefficient. This is often a result of incomplete integration: The new technology may work well on its own, but it may not properly communicate with other office systems to ensure a secure, seamless flow of data.

7 Tips to maximize tech investments

Tip 1: Approach your technology investment as a strategic — not tactical — issue. Before you invest in a new technology, ask yourself what problems you are trying to solve. How does this potential solution benefit your practice? What changes are you willing to make to reach your goal? What additional organization resources will be required to fully use this new technology? It's important to subject the decision to a full return-on-investment analysis.

This analysis should incorporate not just licensing expenses, but other hidden costs, including the up-front investment of staff time during sourcing, implementation and testing, as well as any downtime for the business. You should also include recurring costs associated with data storage, security and cloud-based applications, as well as any expenses related to the safe disposal of legacy equipment that includes sensitive client information.

Tip 2: Put client needs front and center. The guiding principle for any strategic business decision should be whether it helps advisors better serve their clients. A 2015 study by Investment News Research found that only a third of surveyed financial advisors cited “benefit to the client” as the top consideration when considering a new technology investment, well behind desired productivity gains. Keep in mind: A new technology platform that saves back-office time but adds to client frustration and confusion will only create more problems for your business.

Tip 3: Involve key stakeholders from the start. Before making a decision on new technology, consider the experiences and preferences of those who will be using the technology. Involve key staff members in the technology decision from the beginning, learning what they like and don't like about existing systems, and what kinds of functionality could help them do their jobs better.

Tip 4: Cast a wide net. Even if you've established a good rapport with an existing vendor, don't automatically default to their system or recommendations. Instead, talk to your peers with similar-sized practices or client bases. Learn what strategies have worked for them. Industry conferences also can be a valuable way to learn about new technology solutions.

Tip 5: Insist on a vendor commitment up front to full integration and training. Although most vendors claim their systems are fully integrated, some may use the term “integration” loosely. At the most basic level, integration may refer to single sign-on functionality, which permits users to move between applications without reentering log-in credentials.

Full integration goes further and requires each different software program to communicate in real time with one another, ensuring a secure, smooth, and reliable flow of data. This kind of integration depends on the cooperation of various stakeholders, both at the vendor firm and in your own organization. For this reason, it's critical to get a commitment from the technology vendor as to what kind of support they provide though the integration process.

When evaluating vendors, ask the following questions:

• Is there potential to customize the platform to our particular situation?

• How will you guarantee your applications will fully exchange information with our existing systems?

• What kind of trouble-shooting and support do you provide through the onboarding process, and beyond?

• Is your platform designed to scale as our business grows, without requiring us to scrap the platform and start over?

Tip 6: Set up a system of regular maintenance and updates. After the time- and attention-consuming process of implementing a new technology platform, it's easy to take a more complacent approach once the system is running smoothly. As a result, scheduled updates, data backups, and security measures may be neglected. Neglecting these measures can create hidden minefields.

From the start, create a schedule of periodic software upgrades, data backups and security system updates. Regular security applications updates are especially important to keep track of evolving cyberthreats.

Tip 7: Embrace the cloud. With cloud-based services, you don't purchase hardware or a software license. Instead, you access subscription-based, password-secured applications stored remotely and accessed over the Internet. Cloud-based applications allow you to access the most up-to-date versions that include state-of-the art security and bug fixes.

Most are billed on a subscription or pay-as-you-go basis, which involves less business risk than a large outlay for a software license, especially as you navigate long-term integration issues. Sourcing and onboarding a new technology can be a complicated and time-consuming process. Nonetheless, if navigated correctly — with the support of a dedicated technology partner — a technology migration can provide tremendous benefits for your clients, your staff and your bottom line.