| September 18th, 2024 by Vincent Hagedoorn | If there is one topic in my conversations with multinationals we all agree on, it’s the complexity of the IT domain. The general point of view: IT is harder to understand and manage both technically and financially. |
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| Security vulnerabilities, software updates, build and change requests, regulations, just to name a few. There are many internal and external factors that can affect your IT business and may create opportunities or risks for your organization. Finding out which ones to endorse or which ones to block, and making sure money is well spent is not an easy task. |
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| We find that even more complexity is introduced if available resources are not focused to meet strategic objectives. Multiple versions, same functionality, legacy systems, exceptions, and bespoke solutions usually all exist because of this. The footprint of such risks and growth blockers quickly amounts to 30% to 40% of the total IT costs. |
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| To get rid of this complexity by own doing or Self-Inflicted Complexity as I call it, we advise to implement a demand management process that aligns IT investments to corporate strategy. Challenging the upkeep of bespoke solutions if you desire to operate at low costs, and matching demand and supply with agreement on integral costs are some examples where such a process will reduce, rather than introduce complexity. |
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