Here are 6 hidden costs you didn’t know were hurting you.
What is tech fragmentation and how is it costing you big money?
Tech fragmentation is software tools, platforms, and digital processes that are disconnected from one another.
Each caters to specific departments within your organization.
A need arises and you bring in a low-cost software solution for it.
Over and over
This mix of apps and processes creates a disconnected digital ecosystem.
These short-term gains may seem like wins for your nonprofit
BUT
over time they cost you in more ways than just money.
These are 6 costs that you don’t immediately think of, but are damaging your organization
- Confusion – Juggling multiple applications and processes at once is difficult. Bouncing between apps all day:
- frustrates your staff
- keeps their minds on the work
- prevents them from innovative thinking.
- Inefficiency – The more tools you have, the more unnecessary and duplicate features you have. This means you’re paying more for features you use AND paying for features you don’t.
- Training complications – Training new staff takes a long time and they make frequent mistakes; further costing your business.
- Data silos – Data is trapped inside each tool or platform with its own format. Exporting and transforming this data into something useful is time-consuming and is a breeding ground for mistakes.
- Inability to generate data insights – Disconnected data means you cannot generate beneficial insights from it. Like:
- How much of the last grant was spent, and on what?
- How do recurring donations compare to one-time gifts in supporting operational expenses?
- Are program expenses within budget based on available funding?
- Uncoordinated upgrade cycle – Upgrades are necessary but are often ignored because they are inconvenient. Upgrading many systems only compounds the negative impact on your business; leading to
- security issues
- a lack of new features
- increased downtime to apply the upgrades.
What can you do about it?
…more to come