Regardless of the technology, there are always time, cost and acceptance factors to address
Alignment of Infrastructure
In todays market, failure to capitalize on the benefits technology offers will lead to business failure. However, alignment of the network’s technology infrastructure with the performance objective increases productivity and profitability is key to a successful implementation. failing to align network technological infrastructure with the business objectives runs the risk of not only a failed launch and acceptance, but also falling behind the competition and losing market share.
Before adopting any system for your franchise network, determine the relevance and importance of the application being purchased. Who, what, when, where and how will it serve & benefit?
When modify technology, it should meet one or more of the following 3 criteria:
1. Improved Performance
A franchisor’s technological infrastructure affects every aspect of its network operations, from network communication to data management to the franchisees’ customer service. With the right technological infrastructure in place, a franchisor can streamline its, and the franchisees, operations, reduce errors, and improve overall network performance. For example, a cloud-based project management system can increase collaboration among the franchisor and the franchisees and reduce the time spent on administrative tasks. Similarly, a well-developed customer relationship management (CRM) system can improve franchisee customer service and sales performance by tracking customer interactions and providing personalized service.
2. Increased Productivity
A franchisor’s technological infrastructure can also have a significant impact on productivity. By automating repetitive tasks and providing franchisees with tools that streamline their work, franchisee can increase their productivity and efficiency. For example, a franchisor that provides a digital invoicing system can reduce the time franchisees spent on manual invoicing and improve franchisee cash flow. Similarly, a franchisor that has negotiated an organizational rate with phone services provided the ability for franchisees to provide their employees with mobile devices and access to cloud-based software that can improve their productivity by allowing them to work from anywhere.
3. Increased Profitability
Aligning the network’s technological infrastructure with the business objectives leads to increased profitability. By improving franchisees’ performance and productivity, it can reduce franchisee costs and increase revenue, this improving the franchisee’s bottom line. For example, providing data analytics to optimize its marketing campaigns can reduce franchisee marketing costs and increase the return on investment (ROI). Similarly, a franchisor that uses automation to streamline its supplier processes can reduce its costs and improve its profit margins, and that of the franchisees.
For franchisors, providing a strong technological infrastructure is essential to the success of their franchisees. By aligning technological infrastructure with performance and increased productivity, franchisors can help franchisees maintain brand consistency, improve customer, and internal, communications, increase productivity, and increase profitability. This, in turn, often leads to a stronger franchise system, and market share.