cfo

What Every CFO Should Know About Technology Debt

What Every CFO Should Know About Technology Debt

As a CFO, you have the responsibility to formulate your company’s investment strategy. One area of investment most critical to any organization is technology. While the CFO can rely on the CIO to understand the technology, every CFO must have a full understanding of their company’s technology debt to effectively guide the organization to financial success.

The first place to see obvious technical debt is within your company’s software development processes. Consider this debt the work required before a particular job can be considered complete or proper. If the debt is not repaid it will continue accumulating interest, making it hard to implement changes in the future.  An example would be when a company pushes to get a product into market as soon as possible to gain market share or defend against a competitor. In cases like this, it makes sense to launch the product knowing that it isn’t everything isn’t exactly as it should be but it’s enough to either gain market share or stop competitive encroachment.

Read Also:
6 causes of application deployment failure

The second, and most expensive, type of technology debt is with the software, hardware, support, and development costs used to support a system(s) the company knows are end of life. These are the system(s) that should have been replaced, and written off as a sunk cost a long time ago. As a CFO, you can identify these systems by all of the time consuming, high-cost projects with the sole business value of staying in business. Another way to identify these systems is by identifying the projects that drastically fall short of the benefits promised in their business cases. These cost overruns are due to the costs and/or project queue required by these systems in order to make the project a success.;

 



Enterprise Data World 2017

2
Apr
2017
Enterprise Data World 2017

$200 off with code 7WDATA

Read Also:
The Future is What Happens When People Embrace Open Data

Data Visualisation Summit San Francisco

19
Apr
2017
Data Visualisation Summit San Francisco

$200 off with code DATA200

Read Also:
A Crucial Partner in Digital Transformation
Read Also:
Augmented and virtual reality to see aggressive growth by 2021

Chief Analytics Officer Europe

25
Apr
2017
Chief Analytics Officer Europe

15% off with code 7WDCAO17

Read Also:
Bring Your Dark Data into the Light

Chief Analytics Officer Spring 2017

2
May
2017
Chief Analytics Officer Spring 2017

15% off with code MP15

Read Also:
The Advantages of The Cloud for Big Data Storage

Big Data and Analytics for Healthcare Philadelphia

17
May
2017
Big Data and Analytics for Healthcare Philadelphia

$200 off with code DATA200

Read Also:
Predictions 2017: Master Data Management Market on Cusp of Unprecedented Growth!

Leave a Reply

Your email address will not be published. Required fields are marked *