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Are CIOs prepared to modernise their IT operations?

  • Posted on December 8, 2016

IT Modernisation

While experience and heritage in business can be very valuable in driving future success, it can also be something of a drawback when seeking to drive digital transformation. Whereas new companies are built on modern technology platforms, with agility and flexibility built-in from the outset, older organisations often have to get by working with a core system comprised of complex legacy solutions, extended over many years with bespoke code and commercial products Twitter [CLICK TO TWEET].

Strategic Innovation is Key

Today, 51% of CIOs struggle to respond to digital opportunities in a timely way as Gartner has cited in its recent report entitled, “Building the Digital Platform.” And, anecdotally, it appears to be true that inability to innovate is a real driver for IT modernisation. This is where the exploratory piece of the bi-modal IT puzzle comes in, with technology used to drive innovation.

Historically, the ‘how best to accommodate innovation problem’ has been stymied by the need to ‘keep the lights on.’ There are, however, triggers that can force this to change and free up more resource to fuel innovation.

One potential trigger is developments in legislation, which can potentially ask for more from IT than it can adequately deliver. If we take security protocols around biometric banking authentication as an example, it’s foreseeable that big advances in what IT needs to support could render a legacy product obsolete and accelerate the need for innovation.

Another trigger is top-down pressure on CIOs to contribute to business strategy. Having them proactively add to the bottom line instead of solely concentrating on performing the traditional reactive Head of IT role of managing and maintaining. In the Insurance sector, for example, this may mean aligning IT development to strategies that will enable the selling of more policies.

No Hard Stop

Because technology is constantly evolving, there’s no sense that modernisation ever really stops. Instead the key is to always do just enough to at least keep up with trends and competitors, if not stay ahead of them.

Either way, in a business environment where CIOs are constantly asked to reduce budget and drive innovation, it’s essential to introduce an approach to IT modernisation that rationally assesses core IT, understands what’s essential to keeping the lights on and allows for innovation according to strategy.

All it takes is the impetus to start…

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