Unfortunately, corporate technology debt is spawned frequently by not considering the present effort and time that must be, if the shortcuts misfire. CFOs in the current middle market organizations are responsible at a higher rate for IT functions. In majority of the firms, IT is currently reporting to the CFO directly, and in other sectors, the IT leaders mainly rely on CFO for approval spending. There are some CFOs, at present, who are becoming more strategic, and planning to avoid getting intermingled with technology debt. They further fail in leveraging innovation for improving services and processes, as the current technology platform evolves.
Not a New Term to Consider
If you are associated with the ever ending growth of debt, then technology debt is not likely to be a new term for you. It further refers to some failures in constructing efficient projects, dealing with software developments. These deficits are known to be spawned frequent enough by not considering the future effort and time, which must be undertaken if the shortcuts are misfired. On the other hand, financial executives are likely to take a look at the technical debt along with some factors, which can easily lead to ineffective use of technology in a different manner like in other IT sectors.
Understand the Latest Knick
The risks, which are currently associated with poorly run IT functions can, turn out to be greatest threats to the current firm, you are associated with. This can potentially cost you millions of dollars, if you cannot keep or overlook the key evolutions in your current industry. Furthermore, it can further damage the reputation of your firm. The direct technology debt impact can lead many people to support transacting processes. The main cause is usage of three various ERP systems, which are not communicating with other types of disparate systems and each other. This gap can cost the company hefty amount of loss in an annual sector.
Elements Working on Technology Debt
The main component of technical debt is termed as ineffective technology leadership. Moreover, there is 30% of overall debt load, which can be stated as factor for having wrong IT leadership. In some of the other cases, CFO is not quite aware of qualities of a proficient IT leader, which he must possesses. Previously, companies used to put employees with stronger computer skills in IT charge. Nowadays, this note has been changed, and IT leaders must be aware of the term to manage and implement key applications and further help in delivering important data. It further helps in developing proper customer-centric experience and deal with employee desires.
Measure of Technology Debt
For calculating technology debt level, you can develop scorecard that assigns numerical value to any of the 5 components, relating to technology debt for your firm. You cannot just rely on your own thoughts and perception, and can ask other leaders and executives in ways to view technology in your firm. The score between each of the debt component will be within 1 and 10, and multiplied by apt debt load percentage. The CFOs can now visit here to gain some ideas.