Technology Trends Reshaping Associations in the New Economy

Technology Trends Reshaping Associations in the New Economy

By Jerry Jasinowski

Despite a few green sprouts in the economy, the clear picture for the rest of this year is negative or flat economic growth with major challenges for companies and associations. This is not a conventional recession, financial problems will persist for some time and unemployment will exceed 10%. The dozens of companies I follow directly are maintaining healthy balance sheets, cutting costs using innovation to improve productivity, creating new products, and looking for new sources of revenue.

Looking forward, best in class companies and associations are using this period to restructure their business model so they can be more productive and profitable as the recovery emerges. And since technology is so integral to a company’s successful operations, this is where smart leaders are acting now so they may reap benefits later.

What leaders are looking for from their technology to support this new business model include:

• Efficiency: The “Do More with Less” mantra is here to stay. As organizations “right-size” and consolidate operations, today’s workers are expected to be more efficient and more productive.
• Innovation:    Google, Blackberry, Twitter, and other game changing technologies are integrated into our lives and our business.   Smart organizations are looking for ways to stay innovative and to adopt technology that responds to and leverages the latest innovations so they can stay competitive.
• Predictability: You can’t manage what you can’t predict; and technology is no different. Today’s innovators seek solutions that offer “no surprises” in terms of costs and keeping up with the latest technology.

The good news is that today’s association management software (AMS) systems offer these benefits and even more.

System efficiency improves productivity and predictability

I am surprised at how many organizations I meet with that have one database for members, another system for events and have outsourced the web site and eCommerce. Even worse is that none of these systems talk to each other, meaning data can’t be shared and the member history is lost.

Modern AMS tools serve as the central hub for all these functions and collect the data in the same central, integrated repository. The benefits are that data is not rekeyed (also improving data accuracy), processes are streamlined and you build a complete profile of your members and their interactions with your organization.

An added benefit is that since you have multiple departments using the same system, as your staff looks to consolidate, job share or implement new programs they are already familiar with the same baseline tools.

Technology – it’s more than keeping up with the Joneses

Take a moment to think about technology that is part of your daily life – your Blackberry, GPS, iPod, online banking, Amazon.com shopping, and more. As few as 3 years ago some of these were only in the hands of the most technically minded.

Now, how old is the technology running your organization? Have you kept up with these innovations?   As today’s association leaders plan for the future, they are looking for solutions that not only use the latest technology but will upgrade to what is yet to come.   This is where the concept of Software-as-a-Service tools (also known as “On Demand”) comes into play. These solutions are hosted and maintained by a trusted partner/vendor and are regularly upgraded with new functionality.

Many associations typically replace or implement a major upgrade of their AMS product every four to five years – with most opting to upgrade. However with a Software-as-a-Service based AMS, associations don’t have to implement complicated and sometimes costly upgrades. The automated update process relieves the worries of staying competitive and having access to the latest tools.

Lower technology ownership costs delivers a predictable ROI

The last time you purchased a major technology system, it was probably a significant line item in your capital improvement budget. And then 2 years later your IT director came back for more money to upgrade the servers or pay for a software update.

Modern Software-as-a-Service (SaaS) based systems are priced on a pay as you go basis. Much like your organization’s other operating expenses including utilities like cable or electricity, you pay a pre-set monthly fee rather than a significant up-front purchase. Organizations using this model pay a monthly or annual subscription fee based on usage or number of users.

One of the traditional motives to purchase enterprise software, rather than rent it, was to pay a fixed amount that could be controlled. However, by the time an organization adds technical support for the initial implementation and systems integration, along with ongoing maintenance and upgrades, this cost can quickly balloon to hundreds of thousands of dollars.   By contrast this new predictable, pricing model means fees stay the same throughout the length of your usage contract.

Smart Investments Enable Survival and Position for Growth

Even in this economic climate when leaders are making tough decisions, I’m pleased to see some association executives embracing technologies with the benefits I have discussed. By making a strategic technology decision focused on efficiency, staying current with the latest technology, and smartly managing their costs they are on a path that supports the organization’s current mission and will allow them to respond to the future upturn.

The question to ask yourself is how is your association responding to these trends and using technology to survive this challenging economic period? Send me a note if you would like to know more about what is covered in this article or new trends shaping association management.

 
Jerry Jasinowski is the former CEO of the National Association of Manufacturers (NAM) and sits on the board of directors for Avectra, a leading provider of On Demand Association Management Software. A frequent guest on network and financial news programs, he is a noted economist at the forefront of the debate identifying economic and business trends that are transforming global manufacturing and is the author of two books Making It In America: Proven Paths to Success from 50 Top Companies and The Rising Tide.