fomo - hurting your bottom line and costing you money

Technology FOMO – Lessons We Can Learn From Early 2021’s GME Stock Craze

TLDR: Don’t let FOMO run your business.

For those who may have been living under a rock for the first few months of 2021, GameStop(GME) stock prices shot up in value from sub $20 per share, to over $400 per share in less than a month. The reasons and technicalities behind this don’t matter for the sake of this post. What does matter, however, are the countless stories of people who got burned by FOMO, or, the Fear Of Missing Out. You can read a sample story here and here if your curious, but the long and short of is it that a lot of people lost a lot of money by jumping in on a volatile stock situation.

What is FOMO?

Merriam-Webster describes FOMO as “: fear of missing out : fear of not being included in something (such as an interesting or enjoyable activity) that others are experiencing”. Generally, FOMO doesn’t end well for those experiencing it. In our GME example above, it was everyone who wanted to get into the craze but had very little trading experience. This situation was ripe for anyone not used to Limit and Stop orders to and how easily the market can fluctuate to lose big.

But as you can imagine, this post isn’t intended to recap the GME craze of early 2020. Instead I want to go over what I see A LOT of companies suffer from when it comes to their technology stack and architecture. I like to call it T-FOMO, Technology Fear Of Missing Out (original, right?).

A T-FOMO Story

I’m sure you’ve been there before. Your competitor got a brand new website, or a powerful new LMS. Now your in a panic to do the same. Or you’ve heard the latest buzzwords floating around, such as “micro services” or “cloud”, and without really understanding what they are or how they can benefit you, your in a frenzy to get it. You go to an event like Lend360 and your wowed by all the shiny displays and the salespeople telling you how great their product is and how great your product isn’t.

So you gather business cards and flyers, and once you get back to your office you start making phone calls. But the clock is ticking, you’ve been convinced that you need the new website NOW. You need to incorporate a lead gen NOW. You need to upgrade you LMS NOW. So you make your best attempt at due diligence between the companies your calling, just to land on the first one you spoke to. They’ve convinced you that your not doing nearly as good as you can without them and their solution.

Two Paths – One Outcome

From here, one of two things will happnen.

Path one

Everything goes fine. You’ve invested tens to hundreds of thousands of dollars, but you’ve successfully upgraded the piece of technology you where aiming to. You have the new LMS. Or you have the new website. Everything is fine. But it’s just fine. Things should be great. You’ve invested a lot of money and time into this project. Leads should be flooding in. Customers should be raving. Revenue should be increasing. But none of that is happening. Nothing on a business front has changed. Your miserable, your employees are miserable, and your customers are miserable.

You’ve fallen into the common trap of putting the cart before the horse. You didn’t have a solid grasp of your IT infrastructure, your processes, and what you really needed. The company who did the work for you didn’t either, but they also didn’t care. They got their contact wrapped up and their money. They don’t care about your bottom line, they care about theirs. Their sales team blinded you with flashy demos and simply told you what you wanted to here. Sure, what they did for you has the potential to increase revenue, but that’s not their concern. They’ll just leave you hanging to figure it out. Unless you write them another check.

Path two

You’ve spend tens to hundreds of thousands of dollars, but it’s been 6 months and you have nothing to show. The project is constantly met with delays, requests for more funding, buggy or non-working software. You have no confidence in the progress of this project, and you feel like you’ve wasted time, energy, money, and resources. Your miserable, your employees are miserable, and your customers are miserable.

This is a situation I see way to often unfortunately. A salesperson at a vendor sold you on something shiny. They convinced you that you needed this and you needed it NOW. They didn’t bother to understand why you needed it, or if you really needed it at all. Nor did they bother to ask you why you think you need this or what you’ll do with it. They just wanted to close a sale. Therefore you thought you where getting something completely different. They didn’t really care about your business, just their own bottom line. So this project is stuck in limbo because your expecting one thing, while the vendor refused to truly understand your needs and is offering your something different.

Conclusion

None of these situations are your fault. A lot of vendors will prey on the fact that they can convince you what you have is out of date, and that you need to jump on board with this new tech. Their marketing and sales team will ensure you have a solid care of T-FOMO and that your business will crumble unless you hire them now. They don’t want to understand your business or your goals, just just want to close another sale.

So, how can you ensure you make the best decisions devoid of T-FOMO? You can start with an audit of your current infrastructure. Once you get a solid grasp on where your at, it’s a lot easier to determine what you need.

If you want to learn more, feel free to reach out to us for a free consultation and to see how Prime Consulting can help you with your digital transformation and keep your decisions free of T-FOMO.