The cost of technical debt and cultural change inaction
Conclusion: Digital strategies often require organisations to complete major transformation projects to deliver the outcomes required of the strategy. A digital strategy is not just about technology, it is a holistic strategy that involves change across people, process and technology. The acceptance of technical debt and inaction around cultural change can have a severe impact on the total cost of ownership of technology for business. The rate of change in technology can make the traditional approach of depreciation against assets an unnecessary negative impact on good strategic thinking.
Organisations need to address the cost of technical debt and cultural change when embarking on strategic transformational programs to improve productivity. Strategies that involve digital transformation must address the business culture (people and process) and ensure change management programs are funded. The strategy must address the true impact of technical debt and ensure that technical assets are not retained just because they have a residual financial value.