Telecom & Technology Consulting
Technology is a double-edged sword. While enterprises always need the latest applications and software to boost sales, efficiency, and brand reach, those tools eventually become obsolete – and in turn, prevent further growth.
The key is to recognize the indicators for updating your tech, which is essential for taking advantage of the latest innovations and business opportunities.
One signal is when you notice an unusual amount of technical debt. But instead of perceiving this as a negative, flip the script and use it as an opportunity to reassess the value of existing technology. Is it possible to get more value from how you currently employ those tools? If so, you can put off investing in new technology and apply those funds to other mission-critical initiatives.
But when adjustments do need to be made, leaders should first create a team of strategists and develop the business case for the proposed change. “Team” is the key concept, since people from multiple areas of the organization will be involved in any deployment of the new technology.
However, IT leaders shouldn’t necessarily spread investments across several areas of the enterprise. Rather, they must prioritize the upgrades that have potential to drive the highest business value and/or create measurable competitive advantage.
Also monitor if your company has grown in a way that meets, or has exceeded, expectations. If so, it may be a wise time to modernize your IT. That’s because the current infrastructure may no longer accommodate existing business objectives.
Security is always a consideration for any change or upgrade, especially with cyber thieves constantly performing their own version of innovation. And if security weaknesses come to your attention, new tech is a must. In fact, Gartner and Forrester surveys indicate that over half of enterprises claim security as one of the top reasons for refreshing their technology.
Issues with business agility can be another sign that’s it time to upgrade. Unfortunately, it’s common for CIOs to consider modernizing only when their IT systems lose flexibility. This manifests in being unable to capitalize on new market opportunities; the existing technology simply doesn’t have the horsepower to maintain pace with current requirements.
On a related topic, keep an eye out for legacy systems that are showing signs of misalignment. On a practical level, this is when systems for human resources, finance, sales, and other key functions are no longer able to help workers perform their roles with maximum efficiency. Outdated systems also create difficulties integrating with newer technologies, and many vendors no longer support them.
Even more, old technology has a higher chance of causing regular disruptions. While this situation seems like an obvious sign to modernize, leaders don’t always connect the dots; they convince themselves that the issues will somehow work themselves out over time. But this is rarely the case, and you can’t ignore signs of trouble like a rise in customer service tickets from both customers and internal teams.
Beyond monitoring technical performance, it may be even more important to get feedback from the very people who rely on technology to do their jobs. Ask employees what’s working, what can be improved, what needs to go, and what tools they would create if they had a magic wand. Sometimes you don’t need to measure the effectiveness of technology. If employees have gripes about usability, performance, functionality, and interoperability, the handwriting’s on the wall.
If you recognize any of these signs that indicate a need for a tech re-fresh, don’t react immediately. First, build a business case that clearly spells out the problems caused by obsolete technology. Then identify how you will approach implementation and how the new technology will benefit both users and the business. This way, your recommendation isn’t arbitrary, but is attached to key metrics like profits and ROI.
Overall, as with any business issue, be proactive rather than reactive. When you’re ahead of the curve, so will be your enterprise.
