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Why Investment in Technology is Vital for Your Business

The technological landscape is changing, and doing so more palpably as we emerge from the rigours of Covid 19. It is vital for businesses to invest in technology as it continues to advance – but why? How can investment in tech help your business?

Many freelancers and entrepreneurs prefer using co-working spaces Photo-Andela

Why Invest in Technology?

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The truth is, your business is already investing in technology. Whether the smartphone you use to keep in touch with your team, the software you use to track your accounts and expenditure, or even the website you use to advertise your business, the money spent on these is money more or less “invested” in technology. A vanishing number of businesses rely on pen and paper alone, and there are ever-advancing tech solutions for many parts of your business – from AI automation of data entry tasks to cloud computing, data sharing and video conferencing. As these technologies continue to advance, it becomes more and more vital for your business to designate some profit to updating your tech, streamlining your business and keeping up with competition.

Investing Continuously

A one-off investment in technology, however much that investment is and however new the tech is, will not be enough to secure your business’ long-term viability. Technology will continue to improve, and new research will advance new technologies and new tech solutions to replace older ones. Continued investment and re-investment is vital, as certain solutions become outmoded and the needs of your clients shift over time.

This requirement to continuously invest in technology is perhaps most obvious in tech-reliant industries such as CGI, 3D modelling and game design. Modelling engines created in 1994 will not have the requisite tools or power for the needs and tastes of a contemporary audience; a one-off investment in 3D modelling software in the 20th century would not have seen a business survive the turn of the millennium, let alone the explosion in computing power in the early 21st century. This argument extends to every business; continuous investment in tech not only prevents obsolescence and irrelevance, but puts you in a position to lead your industry and reap the benefits.

Tech Investment in Practice: ForEx

ForEx and investment trading are an excellent private sector case study for the investment in technology as a vital component of growing a business. Since the 2020 coronavirus pandemic, interest in retail trading has increased significantly – more and more people are reading up on the stock and foreign exchange markets, looking for alternative ways to grow their wealth. As such, a demand in the market exists and continues to grow; a demand that cannot adequately be met by retail brokers without a sympathetic investment in technology to enable the administration of an increasingly high volume of individual transactions.

In 2020, the UK arm of forex brokers Tickmill reported a 6% increase in year-on-year revenue, with 41% more accounts created than in 2019. Tickmill UK’s CEO Duncan Anderson commented on the growth in revenue, and what it means for Tickmill’s future growth: "We saw strong performance last year with healthy top-line revenue growth which has enabled us to invest further into our technology and listed derivatives product offering.”

While Tickmill UK’s re-investment into technology may have ultimately affected their yearly profit reporting, the investment represents a commitment to longer-term growth, and profit growth far in excess of this initial 6% increase; By reading the market, understanding and pre-empting a continued growth of interest in retail trading, Tickmill are shrewdly turning initial profits from that boom into guaranteed future profits as their client base and technology needs continue to expand apace.

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