Business’ typically see technology as a cost centre because they don’t know how it relates to their key business goals. The Profit Stacks Framework can help to fix this.
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Typically, business owners see technology as a cost centre because they don’t know how technology relates to the key essential goals they have for their business, and so they just put in the financials below the line as operating expense.
But once a business owner can see how technology can help them with key challenges and profitability, then it becomes a profit centre.
So for example, if one of your challenges as a business is how to acquire more customers and you can see clearly and directly how technology can help you acquire more customers, then it becomes a profit centre.
So when our business understands that technology can make a difference and is a key driver of profitability in their business, the main benefit is scale because technology allows that business to automate and repeat a process and can grow incredibly successfully.
Another way technology can help a business increase their profitability is by offering new products and services that had never considered before. So typically, like in a service business they might be really limited by their human resources and delivering a really customised personalised service which is great but then they might be able to use technology to augment that service to have repeat monitoring or evaluation of that service and increase their profitability by offering a different product.