The major thing about technology debt is how to find it and what are the originators of bad technology debt in a company. Once you find the originators of bad technology debt, the CFO can team up with a CIO to lower the expenses of the company and set the organization up for success.
Usually companies have a large legacy scheme set up in the past. The answer to this is to invest in a multinational multiyear upgrade which will need a big part of your budget and IT sources and will put a lot of strategic projects on hold till the right upgrade is brought. Success needs to be brought with several casualties and the end result is that the company remain one or two year away from the scheme being affected with nothing new which could cast a positive impact on the end product. What commenced as an investment sees its fate as an extra bad technology debt which the company struggles to get out of in several approaches.
Several Systems Managing the Same Data
Usually big organizations have several systems which process almost similar data. The basic problem for this condition is to part the business lines or geographies that have complicate the centralized idea of the past, following their own approaches to carry out their goals. There are two types of bad technology debt in this condition.
- High technology costs because of supporting multiple systems managing almost identical data
- Assessing multiple forms of consumer data at different accuracy levels in consistent manner.
Usually companies get successful via acquisition at some or the other point of their time. While the members’ works diligently in the first 2 years and perform which is necessary to be done from an IT viewpoint to make new acquisitions, there are some systems and rules which get left over in the to-do list without being addressed. These overlooked data and sources add to the bad technology debt of a company over time.
While the expenses of a particular line seem low in calculations, your company is surely making all the payments for it. Many of the rules and systems go above and over the funding and systems to be managed well. And if the supplemental processes fall apart, there will be huge business risks. There are time when supervisors stay up all the night to run a 20-step process and to convert them into a database or spreadsheet manually.
Mis-match between Business and IT
Lastly, one of the basic originators of bad technology is when the IT goals and the business aren’t well aligned. If the goals of your technology and objective of your business aren’t directly related in any way, you almost enhance your bad technology debt.
Just prioritize your focus on all the segments and partner with a good CIO to help your company cut its bad technology debt. A great idea to get over this debt is by opting for best consolidation loans.