Organisations Should Focus On IT Modernisation: Gartner

Many IT organisations are overly focused on which tactical step to take next and are missing the ever-worsening bigger picture with respect to IT modernisation, according to Gartner. Gartner foresees a confluence of trends that, if ignored, will leave many organisations unable to respond effectively to business demands.

“We are seeing the IT conversation dominated by what projects to do next, status of existing projects and talk of maintenance efforts,” said Scott Nelson, managing vice-president at Gartner. “The danger is that many organisations are doing the equivalent of looking down at each step they take, rather than picking their heads up and seeing where the steps are leading. For many companies, the potential for an IT train wreck is significant if the warning signs are not heeded.”

“It is easy for companies to turn a blind eye to changes in the IT application landscape, but these systemic changes are unavoidable and companies that ignore the signs will have problems with their application strategies,” said Val Sribar, group vice president at Gartner. “Understanding the key signs of change in applications will help companies develop effective plans to modernise their application environment.”

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Gartner has identified 10 key indicators of potential danger that can help organisations. These include:

Skills Shortage. Many organisations are investing huge budgets in hiring programmers to keep an old system running. Instead, companies need a strategy for supporting the business that fully exploits, for as long as possible, the investment in the old system, but which also recognises that a replacement system strategy is also needed.

Vendor/Product Consolidation/Support. As the number of vendors consolidates and products age, those products are retired by the acquiring company and taken off support status, with the result of increasing maintenance charges with little in the way of incremental functionality. However, companies often depend on these applications, and switching to a new application is both inconvenient and resource intensive.

Agility Metrics Decay. Agility metrics for making a business changes decay as systems become more brittle and the ‘piling on effect’ worsens. Consequently, the business cannot afford to change because the IT organisation can’t support the changes.

Operation Expenses Escalate. Operation expenses become a larger portion of the IT budget as the ‘piling on effect’ worsens. As a result, there are little resources — money, people or time — to work on anything new.

Ageing Technology Portfolio. The ageing technology portfolio drifts further away from the desired ‘future state’ architecture standards. The technology vision laid out by the enterprise architects becomes impossible to achieve.

Difficult to Access Information. Information becomes increasingly difficult to access and analyze as data structures age. Modern business users are highly information-dependent. As the data becomes more out of date, less accurate and more difficult to access, the business is increasingly forced to work without the information needed to make decisions.

Legacy Capacity Risk. Legacy capacity needs increase as new interfaces, such as Web connections, drive up transaction volumes, resulting in greater spending on traditional processing and storage and so forth.

Regulatory Compliance Issues/ Risks Increase. Compliance is an issue even in traditional, lightly regulated industries, and legislation shows that any company may be at the mercy of outdated systems that can’t meet the needs of increased regulations.

IT Costs Increase, Agility Decreases. Direct business purchasing of IT-related services drives up central IT costs and drives agility downward.

Green IT. Today’s CIOs are likely to have targets that will involve substantial infrastructure changes to achieve green IT objectives. These changes will almost inevitably carry implications for the application portfolio.

To avoid the so called IT train wreck, Gartner advises that organisations put IT strategic planning, rather than tactical budgeting at the heart of the CIO management agenda.

“By developing an application strategy and focussing on retiring older systems, CIOs will be best placed to fund an IT modernisation programme that works to drive the IT organisation to achieve a desired state,” said Andy Kyte, vice president and Gartner Fellow.