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.
About The Advisor
Mike Mitchelmore is an IBRS advisor specialising in the areas of ICT strategy, program and project management, ICT service delivery and telecommunications. Mike has more than 40 years of experience in the ICT industry during which he has successfully led engagements in the design and deployment of a global telecommunications networks and IT platforms, negotiated managed telecommunications services, introduced new capabilities for call centres and consolidated ICT systems to focus on service delivery for citizen facing services. Mike has also assisted clients in ICT strategy, support planning, system design and architecture, and procurement strategies. Mike is a graduate of the Australian Army Command and Staff College, and the Royal Military College of Science (UK). He holds a degree in Social Science (human resource development), and graduate diplomas in Management Studies and Telecommunications Systems Management. Mike is a certified PRINCE 2 Practitioner and an ITIL (V2) Manager.