The Risk of Delaying a Technology Initiative
Does doing nothing have a cost?
By Lisa Genco
When the budget is constrained, it is easy to pull the plug on pending technology projects. Many organizations believe that maintaining the status quo does not have a cost. This is not true. When is the cost of “doing nothing” greater than the cost of the new technology itself? Here are a few risks to consider:
Competitive Edge
Technology has come a long way, baby! We all know how rapidly technological advances are occurring these days. Who hasn’t purchased the latest and greatest smart phone or TV, only to find out that one with even more functionality is being released within the next month? Capitalizing on these innovations early can allow businesses to achieve a strategic gain. For example, the common use of mobile devices has mandated that businesses think and work differently in order to maintain and attract customers. Creation of mobile apps and use of mobile communication methods could catapult a business to the top of the market. On the other hand, organizations that defer technology projects could find themselves at a competitive disadvantage. Whether the technology is part of the product, service, or business process, delaying these initiatives may give your competition an edge up in the market. And, that could be a cost not worth bearing.
Efficiency and Quality
FACT: Organizations with antiquated systems spend more time on manual processing. New systems and technologies are designed to make processes easier, faster, and more effective. Companies that “make due” with older systems employ more staff per volume than those with newer systems. For example, a strong and flexible business rules engine can more than double the amount of automated processing that is done. Beyond processing times, advanced technologies equate to better quality and completeness. For government agencies that must maintain the delicate balance between creating jobs and lowering costs, efficient processing and advanced technology promotes the ability to meet deadlines and work smarter. An example of this is in the use of cutting-edge satellite imagery when natural disasters occur. The advancements in this technology provide an instant and more complete view of the disaster, which aides in faster and better relief efforts including logistics and security. All in all, improvements in productivity and quality may mean that spending on the new technology is the better choice, both financially and operationally.
Maintenance and Security
As a car ages, you spend increasingly more money to keep it running…right? Likewise, as systems age, they require more maintenance. For example, older platforms do not communicate as well with newer platforms. Similarly, data is harder to extract or convert in order to meet changing business needs. At some point, the older platform will not be supported by the vendor anymore. And, it will be more difficult and more costly to find qualified support staff. Older systems are also more vulnerable to data loss, unknown code glitches, and security threats. Lastly, older systems were not built with new compliance rules in mind and, therefore, many do not have the capability to meet these requirements. Over time, a significant amount of “band aide” patching is done to keep these older systems working. The cost of maintaining these older systems and the vulnerabilities these systems produce may make the cost of the new technology the more attractive option.