In Episode 108 of the Uplevel Dairy Podcast, dairy manager-turned-software developer and founder of the Dairy Performance Network, Manny Salcedo, discusses the three-step audit he and his team walk dairy owners and managers through to help them determine if investing in technology is likely to deliver on their dream of making management easier and the dairy business more profitable.
Before signing on a dotted line, let’s delve into the three essential factors mentioned by Salcedo:
1. Performance Evaluation
One of the initial steps suggested by Salcedo is to assess the current performance metrics of the dairy operation.
“How are we performing today?” he asks.
By analyzing key performance indicators (KPIs), producers can gain insights into their existing efficiency levels and areas that require improvement. Understanding where the operation stands in terms of performance provides a baseline for evaluating the impact of new technologies.
2. Team Acceptance of Technology
The second critical consideration emphasized is the dairy team’s ability and willingness to accept change.
“Sometimes we tell them, if you drop this technology on them, I’m not sure if they’re going to want to manage it,” Salcedo says. “So I always tell people, talk to your team first.”
Implementing new tools involves a shift in processes and workflows, which may be met with resistance from employees. Dairy producers need to evaluate whether their team is ready to embrace the changes that come with new technologies. Creating a culture that values technology adoption and encourages continuous learning is essential for successful implementation.
3. Return on Investment (ROI) Analysis
Lastly, Salcedo stresses the importance of conducting a thorough ROI analysis before making an investment in new technologies.
“The biggest thing is basically the ROI. What kind of impact will it have if I’m able to bring the other two things together?” Salcedo asks.
Dairy producers should assess the potential impact that the technology will have on their operations and calculate the expected returns. Understanding the projected ROI helps in making informed decisions and ensures that the investment aligns with the desired outcomes, such as saving time, reducing costs, and enhancing overall performance.
As Salcedo emphasized, before dairy producers embark on the journey of integrating new technologies into their operations, it is crucial to consider these three key factors: performance evaluation, team acceptance of technology, and ROI analysis
By taking a strategic approach and carefully evaluating these aspects, producers can make informed decisions that will pave the way for a successful technology implementation.
