There is this telecommunication company that is run by my friend and they offer voice, data and video solutions to corporations. I was a part of the conversation that they were having internally on their pipeline. There is one instance that I specifically want to recount here.

To one of the corporations in their pipeline, they have proposed a voice solution, which is quite superior in quality and it matches the cost of their existing vendor and this company has decided to go for it. This solution would decrease their communication expense easily by 30% without compromising on the quality. They have in principle agreed to go with the solution but the order is not getting placed. One of the reasons can be attributed to bureaucracy involved in decision making, but apparently the ultimate decision maker in the organization has also given the green signal to purchase. Still, the  order isn’t forthcoming. I was a part of this session where the reasons were being discussed for holding back the Purchase Order.

1. They are concerned about the quality of service, which is not the case because they are convinced on the quality

2. Price points are not high, because this is as good as what they can get from anyone else

3. Support again is not an issue, as the provider is in the same city as the customer. They have strong SLAs that will ensure quality of service

4. Budget again is not a problem for the organization, as this investment would certainly reduce their communication spend and they can see it from day one.

In spite of all this being overwhelmingly in favour of this telecom company, they still aren’t getting the purchase order for them to implement the solution. Then we realized, that it is a “techie-run company” and their priorities aren’t about reducing costs and it is more about improving their process, do value addition to their customer engagements, create IP, look at account growth and increase business acquisitions.

But then, entrepreneurship is all about doing more with less, and being frugal without compromising on the essentials is a way to go, whether or not the recession is on. This definitely is a challenge for  a “techie-run” company.