All too often individuals become obsessed with the latest technological trends. While new gadgets and programs are exciting on an individual level, they can be costly on a corporate level. The key to deciding whether or not to implement technological change is whether or not there is benefit to be seen.

Companies have repeatedly invested millions of dollars in the latest technological advancements, only to find the large outlay of capital had little to no impact on the company’s profitability. Why is this?

Let’s consider the fact each company has a core competency; whether this be superior customer service, cutting-edge innovation, superior human resource relationships or manufacturing excellence. These competencies drive the direction of the company. Technology, however, does not. It may be a symptom of success, but is not the prescription.

It’s true technology can make life easier, increase productivity and ultimately may help management to focus on larger issues pertaining to profitability. Unfortunately, new technologies can often become championed by individuals who have lost sight of the company’s competencies.

For instance, let’s consider an insurance company who provides superior customer service and timely settlement of automobile claims by emphasizing the empowerment of staff. These employees have the ability to make decisions and judgment calls while in the field. An expansion of services or product lines to increase customer satisfaction and word-of-mouth referral would need to be tailored around this core competency of superior service and professional expertise. New technologies may or may not enhance this competitive advantage. The key is to assess improvements which in fact improve your staffs’ ability to improve claims handling and improve customer relation. If, following research and competency assessments, technology is deemed to be beneficial, then new technologies may be implemented. What if, however, these new technologies didn’t help with improving customer satisfaction and only increased administration expenses? How would the purchase of these new systems have helped to increase profitability?

Bottom line, technology should not be the driving factor; the business itself should. Technology can be wonderful, but it may also be overwhelming and have negative impacts for a business whose competencies are not dependent upon the newest upgrade.

Consider your business needs before jumping on the bandwagon. Remember, not every new gadget is applicable to your field of business, just as every social networking site may not be advantageous for building your brand.