Over a period of time and as companies grow, their systems, data, and processes also accumulate. The expansion whether organic or through acquisitions can cause a tremendous increase in complexity over time. Unless effective simplification measures are taken, the complexity can drain productivity and competitiveness. Unfortunately, simplification measures take a back seat as leaders focus on running the day-to-day business. As a consequence, their business becomes rigid and hard to change and the cost of running business goes up and it becomes harder to adjust to market conditions.
What really is IT Simplification
IT Simplification really means simplifying your systems, processes, and organization to make business more profitable and competitive. There are four aspects of IT Simplification. It is also important to consider how IT Simplification helps foster innovation.
Platform and Application Simplification:
In many IT companies’ old platforms never die. I have worked in the financial industry where old document management systems linger long after vendor support is gone. After multiple legacy modernization projects for the same legacy platform over a period spanning decades, the legacy systems still persist.
There are many solutions if implemented will reduce complexity, save costs and free up expensive resources. But leadership is scared to even think about decommissioning these systems. Many times, there is no roadmap or plan for even platform upgrade leave aside the end of life. Platform simplification should not be an afterthought, it should be part of the new technology introduction process.
Process Simplification
With old platforms, the old inefficient processes continue to plague businesses. Even with new platforms, many old processes are just reimplemented without optimization. Relevant KPIs are not gathered so teams have no insight to help them optimize these processes. Businesses continue to operate without understanding what is possible with technologies. To optimize processes, it is important that the overall IT landscape is conducive.
Workforce Optimization
IT Resources are expensive and also most critical for businesses to stay competitive in the digital economy. With old platforms and processes lingering, many resources are tied up in managing and baby-sitting the platforms and processes. IT simplification should free up critical resources to focus on the critical business needs of tomorrow and on creating innovative solutions to give build a competitive advantage.
Innovation
Without platform and process simplification, innovation opportunities are stifled. There is little time and resources left for new ideas. But there is even a bigger problem and that is of leadership. A leadership that is hesitant in taking the right decisions in fear of causing disruption cannot foster innovation.