Why Every Business Leader Should Care About Technical Debt, Volume 1

In the not-too-distant past, technology investments were thought of like the free chips and salsa served before a meal, rather than the meal itself. Consideration In contrast to Requirements.

Ten years ago, technology complemented the business experience, but business success did not depend on it.

What is Technical Debt?

According to Osias and Fisch, technical debt “refers to the inefficiency and waste that occurs when IT resources no longer meet the needs of an organization.”

While many think of this debt simply as delivering substandard software coding, in reality, technical debt “includes everything from code and applications to physical hardware,” and it's the latter that often takes the biggest financial toll.

It's no surprise that technical debt is a top pain point for many technology professionals, with a recent survey showing that 86% of technology executives have been affected by technical debt within the past 12 months.

Yes, it's a problem. Yes, it needs to be brought to light. Yes, there needs to be a plan to mitigate the immediate obstacles to peak business performance.

The Importance of Technology in Business

Technical debt would not be causing so much distress for technology leaders if technology's status in the business world had not changed from a “nice to have” to a “must have.”

There are many things we can do better without technology. But is that really true? Of course, we know that technology plays an essential role in all mass production: manufacturing, distribution, retail, etc. But have we forgotten about independent businesses, small businesses, and sole proprietors?

According to a new study by the U.S. Chamber of Commerce on the impact of technology platforms on small businesses and the economy.

• 95% of small business owners in the U.S. report using at least one technology platform to run their business.
• For many small businesses, technology and data are considered fundamental to their operations.
• Among very high-tech small businesses (those using six or more technologies), four in five reported increases in sales, employment and profits.
• 78% of small businesses reported that technology platforms have helped them cope with the strain of inflation and supply chain disruptions without passing on higher costs to consumers.
• Seven in 10 small business owners agree that without access to technology platforms, their business would struggle to survive.
• Nearly three-quarters of SMEs stated that technology helps them compete with larger companies, and the same number suggested that losing access to data would negatively impact their operations.

From small businesses to large enterprises, the impact of technology drives impact, efficiency, demand, and viability.

The use of technology by companies outweighs the positive impact that technology has on business. Simply put, technology is very important to business.

Why should you care about technical debt?

Technical debt arises from investments in technology and the expected lifespan of that technology, as well as the dramatic pace at which technology changes and improves.

When technology investments are made passively or by sticking to “the way things have always been done,” the negative effects of that debt will surface more quickly and be nearly impossible to address with any level of fiscal responsibility.

According to Software AG Research, “Despite the importance of technical debt, more than half (58%) do not have a formal strategy for managing it, even though 82% say they are able to assess all or most of their technical debt.”

Wow.

Meanwhile, despite timelines, funding and conversations, the impact of technical debt on the business is often Security and scalability risks. do not have It's better to tackle technical debt head on rather than deal with it urgently.

It can be difficult for technology leaders to prioritize discussions about seemingly overlapping spending needs, especially if they are the leaders who drove the big purchases in question yesterday.

It's easier to ignore reality, but not acting quickly can be immeasurably dangerous — no matter who made the purchase, when, or under what circumstances.

Next steps

What if you can’t address technical debt right now? How do you know if it's the right time to tackle technical debt? How can you manage the conversation with clarity, accountability, and prioritization?

Now that we are clear on (1) the what, (2) the importance, and (3) the why, stay tuned for our next post where we will cover how to tackle the threat of Technical Debt for the betterment of your business and security.

Click the follow link above (image below) to be notified of the next chapter in this conversation. The steps are simple, direct, doable, and easily replicable.