Is technical debt applying the brakes on digital strategy?
Conclusion: Every dollar spent in supporting legacy systems or BAU (business as usual) represents a dollar that cannot be allocated to digital transformation initiatives. Conversely, organisations without legacy systems (digital natives) can be quicker to market with innovative solutions supporting the digital strategy, as there is no residual debt to repay.
Compounding the problem for organisations with legacy systems is that skilled IT professionals supporting them are likely to be fewer each year, as they leave for greener pastures or retire. To back fill, management must pay a premium to engage skilled contractors who will need time to understand the nuances of the legacy systems and become productive.
About The Advisor
Alan Hansell is an emeritus IBRS advisor who focused on IT and business management. Alan specialised in critiquing and commenting on IT and business management trends, ways to justify and maximise the benefits from IT-related investment, IS management development and the role of the CIO. Alan has extensive experience in IT management, consulting and advising senior managers in matters related to IT investment. He was a Director in Gartner's Executive program and adviser to over 50 CIOs and business managers and before joining Gartner a consultant with DMR Group. He also worked as an IS professional, manager and industry consultant for IBM for nearly 30 years. Alan is a CPA and Associate of Governance Institute of Australia.