One of the most crucial, but overlooked, aspects of profitability is leveraging your data to gain insights. Whether you are preparing reports for a grant, planning a broadband expansion project, or integrating AI into your operations, it is critical that your data gives you the ability to create many different views and metrics. Enter tech stacks.
Traditionally, we would use spreadsheets to manipulate raw data to get it into the correct format. But in today’s rapidly changing environment, this is quickly becoming unsustainable. Robert Merii, Director of Finance at Innovative Systems, shared best practices and the benefits of moving from spreadsheets to an integrated tech stack.
As it relates to operations for a broadband service provider (BSP), a tech stack is a set of technology that is linked together to perform business functions. To maximize the impact of your tech stack, the first step is to have a vision of which metrics you ultimately want to get out of your systems. This will be your north star, guiding how you connect systems across your tech stack.
Once you have that defined, identify the system that will be the source of truth (SOT) for all other systems in your tech stack. From there, you use a unique ID originating from the SOT and seed that ID into every other system you use. Following that guideline will create a single SOT for your data, reducing swivel chair errors and helping identify areas for improvement.
“Automating data tagging at the point of origination enhances reporting flexibility and significantly boosts your capacity for insightful analysis,” said Merii.
Spreadsheets are not going anywhere, but automation is the key to reducing time and money spent on low-value data manipulation. If you leverage technology solutions to automate data collection across systems, you will see savings across all departments.
With AI advancements rapidly evolving, how you structure and tag your data is becoming crucial. Where possible, BSPs should adopt AI to stay ahead. To fully leverage AI’s benefits, ensure your data is well-organized. Otherwise, it may be ineffective. Prioritize getting your data in order and automating your tech stack before investing significant financial and personnel resources into AI implementation; without the former, the latter will offer limited value.
When establishing product lines and prices, having connected data so you can properly assess the contribution margin of each is critical to ensure you are creating a sustainable and profitable business.
Financial reporting is a key part of any BSP’s business, whether they are presenting to the board, cooperative members, grant agencies, or other invested parties. Having a dynamic and integrated tech stack with accurate, real-time data ensures that you can pull key performance indicators (KPIs) at the drop of a hat.
“Once these systems are in place, BSPs no longer have to spend time on low-value, time-consuming manual reconciliations. This frees up valuable time to work on the business, not in the business,” said Merii. Implementing a simple and effective tech stack with fast and accurate data is a proven method to add efficiencies across departments and create a process for growth.
Robert Merii, Director of Finance
Innovative Systems
Robert is a finance enthusiast and a CPA with an MBA from Canisius University. He’s spent over a decade working in finance, in both founder-owned, and private equity-backed companies, with experience in operational and strategic-focused roles.
