Credit Matters Blog

Can Management Adequately Predict Your Business's Liabilities? Part Two

Kim Radok 14 May 2017


Let me state from the very beginning of this blog; despite my many criticisms about the use of technology, I do appreciate its benefits when it helps me work more efficiently. When technology is implemented properly, and for the right reasons, it is a wonderful aid for increasing the profitability of your business. However, therein lies the problem.

Technology is often implemented badly and for the wrong reasons. As a consequence, the benefits of the technology are lost as costs increase and rob the business of the potential improvements sought. Worse still, the liabilities incurred by poorly implemented technology are not purely financial, easily fixed at a minimum of cost and can cause long-term reputational damage.

It is tempting to suggest when we look at the behaviour of the younger generation, "... technology is ruining them." For example, it appears the younger generation have become self-absorbed, almost anti-social and lack common sense. We don't have to look to hard to see the evidence of these examples in their attitude to life and social activities. 

Unfortunately, I am starting to see many similar examples which suggest technology is a having a similar effect on business owners, management and associated business professionals. We can see this effect in the following issues which all too often present themselves after implementation of new technology. I would also suggest these issues indicate of how business people fail to think clearly and apply common sense to their business activities.

1 There may be no telephone numbers on a business web site and the other contact points are all generic email addresses.

2 When purchases are entered in to e-billing systems, there may be no confirmation on whether the purchases have been accepted or rejected. 

3 There is often adequate back up support to help with problems on entering purchases, requesting sales information or customer service requests.

4 Customer service requests or invoice enquiries may be met with a generic answer "Your contact is acknowledged and we will respond within xxx hours or days."

5 Email answers to the situations raised in point 4, generally lack a person's name and are of a generic nature.

6 Generic emails do not help foster a positive business relationship between the business and its stakeholders.

7 Generic emails allow lazy and disenfranchised employees to avoid their responsibilities.

Each of these examples are basic business flaws, which create additional and unnecessary liabilities for your business. More importantly, these liabilities usually cannot be resolved quickly at a minimum of calculatable costs.

Technology will increasingly be a factor in how we do business. Implemented properly, technology will add value to your business over the long-term. However, implement technology badly and for the wrong reasons, your business liabilities will increase in ways not anticipated. It comes down to a common sense approach and an understanding of basic business principles which are still essential in this age of technology to operate efficiently to reduce liabilities.