Gartner has revealed its findings from a recent analysis. The research report shows that reliance on outdated technologies can slow a CTO’s response to disruptive events.
Recent Gartner research has led to some interesting facts regarding the lack of outcome-focused technology solutions in the enterprise. For example, the study showed that by 2025, 80% of CTOs operating without business-outcome-focused technology roadmaps “will stall their organization’s response to disruption. Gartner estimates that “they will lack the right technologies to support business and customer needs or adapt to change.”
The research also showed that executive leaders are currently sharing unrealized dependencies. They can help to meet business growth expectations once they are properly identified. These unrealized dependencies can also function to bridge the multiple capability gaps that exist across the enterprise.
The Gartner group refers to these unrealized dependencies as “technical debt“.
What is technical debt?
Technical debt is built when a legacy asset is used beyond its valuable life. This introduces the risk of business functions failing when the technology eventually fails. Continually reinvesting in technology and refreshing with newer innovations protects the organization from costly downtime.
However, technical debt is often marginalized against what are deemed the more valuable concerns of highly competitive organizations. These are revenue growth, innovation, transformation and speed.
“If every business today is a digital business, then the “digital” needs to be addressed as frequently, and with the same level of diligence, as what is also considered core by the CEO”, Gartner warns.
Reluctance to invest in new solutions
The Gartner study also revealed that even when solutions reach end-of-life, executives chose to upgrade and customize the older systems rather than opting to invest in newer solutions with enhanced capabilities.
However, Gartner offers an optimistic take. “Proactively reducing technical debt increases adaptability, which is essential for digital business”, they say. What stands against this positive outcome? Gartner observes that, in many cases, “previous short-term rewards may have created an environment of passive resistance from stakeholders, which can affect any discussions to address technical debt”.
“In the fight against inflationary economic headwinds, enterprises need innovation and growth but are held back by resistance to clearing technology debt,” Gartner explains. “Executive leaders can use this research to align and reprioritize objectives and reap the rewards of modernization while reducing recession risks.”
The original report can be viewed here.