In my last update on the growing Technology Gap that exists in many firms, I wrote about conducting regular software audits. These can identify licenses and even full applications that can be retired, help to manage costs when you renew contracts by eliminating unused features, or by consolidating contracts for applications used by two or more business units, and can help to ensure all software is up-to-date and is meeting its intended functions. As well, these audits can highlight applications that are no longer meeting current or desired business needs, and so can support the strategic plan for systems upgrades and replacements.
The strategic plan is an internally-driven process, and while the software audit may include other teams, such as IT and Internal Audit, it is still driven from within the organization.
If the results of these activities do not provide the impetus to start closing the technology gap, perhaps some external support can help to make the case. Engaging with technology experts, such as software developers and IT consultants, can provide valuable insights and guidance in aligning technological investments with business goals. There will be some cost involved here, but the case can be made for an investment to ensure that IT expenditures are providing the support needed to operate the business effectively and efficiently, to provide accurate and timely reporting, to help inform investment decisions, and to minimize the risk of compliance violations and technology breaches. In other words, the investment could generate some net savings (reduced IT costs and more efficient operations), and avoidance of indirect costs (regulatory fines, urgent technology fixes, trading losses, and reputational damage).
One of the outcomes from an external review of your operation should be some recommendations to upgrade or replace technology that is no longer capable of meeting your business needs, and the report should identify the potential consequences of failing to remediate these deficiencies.
The combination of a detailed strategic plan, supported by the recommendations arising from your software audit, and given further amplitude by the external review, should be sufficient to set in motion a plan to start upgrading software versions, and to replace inadequate platforms with ones designed to meet current and evolving business needs.
Next time: (next time? Isn’t this the third in a series of three?) Yes, so not really a fourth option, but an analysis of the potential consequences of not implementing an ongoing technology upgrading program.
