The hidden cost of disconnected economic development tools
- Matt Moloney
- 20 hours ago
- 4 min read
Economic development has become more complex, more data-driven, and more relationship-focused than ever before. Yet many teams are still relying on disconnected systems—spreadsheets, inboxes, notes, and legacy databases—to manage the work that matters most.
At first glance, this may seem manageable. But over time, these disconnected tools create invisible costs: missed opportunities, lost institutional knowledge, inefficient outreach, and an inability to clearly demonstrate impact.
Modern economic development requires more than data. It requires a system designed to turn information into action.
The spreadsheet ceiling: where most teams get stuck
For many economic developers, business information lives in multiple places:
Spreadsheets tracking business visits
Inbox conversations with local businesses
Survey responses stored separately from business records
Notes stored individually by staff members
This fragmentation creates immediate limitations.
Heather Bregel, Economic Development Director for the City of New Ulm, Minnesota, experienced this firsthand. When she stepped into her role, there was no centralized business database—no reliable way to understand how many businesses existed, what their needs were, or how they had been engaged.
“We didn’t have a complete picture of our business community,” Bregel explained. “Information was scattered, and there wasn’t a consistent way to track engagement.”
Without a single system, even basic questions required manual effort to answer.
This creates risk not only for relationship continuity, but for the effectiveness of the entire economic development strategy.
When business intelligence lives in silos, insight disappears
Disconnected systems don’t just create inefficiencies. They limit visibility into what’s actually happening within the business community.
James Lear, Business Analyst for Fairfax County, Virginia, described the challenge clearly. Prior to implementing a centralized system, business intelligence was fragmented across multiple tools and teams.
“We had pieces of information in different places, but no single source of truth,” Lear said. “It was difficult to confidently answer questions about engagement, trends, or business needs.”
Without centralized visibility, economic development teams operate reactively—responding to individual issues without the ability to see broader patterns.
A CRM transforms this dynamic. Every business interaction, visit, and update contributes to a complete, living record.
This allows teams to identify trends, prioritize outreach, and make more informed decisions.
Why generic CRMs and disconnected economic development tools fall short
Many communities attempt to solve this problem using generic CRMs or internal databases. But most of these systems were not built for economic development.
They lack the ability to track engagement in ways that reflect real-world workflows.
In Redmond, Washington, maintaining continuity and trust with businesses was a top priority. The economic development team needed a system that could preserve institutional knowledge and ensure consistent engagement over time.
“It’s important that we can see the full history of our relationships with businesses,” the Redmond economic development team shared. “That continuity helps us build trust and provide better support.”
A purpose-built CRM ensures that every interaction is captured and accessible—regardless of staff changes or organizational growth.
This preserves institutional knowledge and strengthens long-term relationship management.
The operational shift: from reactive to proactive engagement
Disconnected tools force economic developers into a reactive posture.
When a business reaches out, staff must search across spreadsheets, inboxes, and notes to understand context. Even then, information may be incomplete.
A centralized CRM changes this.
Heather Bregel saw this transformation in New Ulm.
“Now we have a structured way to track businesses, understand their needs, and proactively support them,” she said.
With complete business profiles, staff can instantly see:
Engagement history
Survey responses and updates
Program participation
Key business characteristics
This enables proactive outreach and more strategic relationship management.
Instead of reacting to issues, economic developers can anticipate and address them early.
From static data to actionable intelligence
Many communities have access to business data. But without a system designed to organize and activate that data, its value remains limited.
James Lear emphasized how transformative centralized data became for Fairfax County.
“Having reliable, organized data allows us to better understand our business community and respond more effectively,” Lear said.
When data is connected to engagement, it becomes actionable.
Survey responses can update business records automatically. Business visits enrich relationship history. Outreach can be targeted using real, current information.
This transforms a static database into a strategic asset.
A foundation for measurable impact
Economic developers are increasingly expected to demonstrate results.
Disconnected tools make reporting difficult and time-consuming. Teams must manually compile information from multiple sources, often with incomplete data.
A centralized CRM changes this.
Because engagement, outreach, and business data live in one system, reporting becomes immediate and accurate.
This allows teams to clearly demonstrate:
Outreach activity and engagement levels
Program participation and impact
Business needs and emerging trends
With complete visibility, economic development teams can operate with greater confidence, efficiency, and strategic clarity.
The new standard for modern economic development
Economic development has evolved. The tools used to support it must evolve as well.
Disconnected spreadsheets and fragmented systems cannot support the level of coordination, visibility, and accountability required today.
Communities like New Ulm, Fairfax County, and Redmond have demonstrated the impact of adopting purpose-built CRM systems—moving from fragmented information to complete visibility and proactive engagement.
A modern economic development CRM provides the foundation for stronger relationships, better data, and more effective economic development.
