How Much Is “Information Technology Debt” Hurting Your Bottom-Line?

Information Technology (IT) debt is basically the cost of maintenance needed to bring all applications up to date.

Shockingly, global “Information Technology (IT) debt” will reach $500 billion this year and could rise to $1 trillion by 2015!

But why should you take IT debt seriously and begin to take steps to eliminate this issue from your business?

According to Gartner, the world’s leading information technology research and advisory company…

It will cost businesses world-wide 500 billion dollars to “clear the backlog of maintenance” and reach a fully supported current technology environment.

Gartner summarizes the problem best:

“The IT management team is simply never aware of the time scale of the problem.This problem, hidden from sight, is getting bigger every year and more difficult to deal with every year.”

The true danger is that systems get out of date which leads to all kinds of costly software and hardware inefficiencies.

Your tech support provider can most likely do a better job at staying current with your computer and network environment.

Have them start today by documenting the following:

  • The number of applications in use
  • The number purchased
  • The number failed
  • The current and projected costs of both operating and improving their reliability

Are you using this powerful formula to control your technology?

There’s a powerful formula I’ll share with you in a moment that will help you adopt new technology faster in your business.

In business, technology encompasses Information Technology (IT), Phone Systems and Web Development.

These three layers of technology form the backbone of your business’s technology environment. Why is technology adoption so important?

Without new technology adoption it’s impossible for businesses to be competitive in this economy. A major role of technology is to help businesses scale, design systems, and automate processes.

Studies recently have shown that adopting technology keeps businesses leaner because entrepreneurs can do more with less.

There’s evidence that new business start-ups are doing so with nearly half as many workers as they did a decade ago.

For example, Wall Street Journal’s Angus Loten reported that today’s start-ups are now being launched with an average of 4.9 employees.

Down from 7.5 in the 1990s, according to the Ewing Marion Kauffman Foundation, a Kansas City Research group.

In other words, technology allows businesses to expand quickly with less.

Researchers at Brandeirs University found that technology driven service businesses added jobs at a rate of 5.1% from 2001 to 2009; while employment overall dwindled by.5%.

These businesses save money, expand, and create jobs by adopting new technologies.

Are you adopting new technologies fast in your business?

Speed of technology adoption is critical to your business success.

Technology is changing the speed of business; now a whole industry might expand, mature, and die in months… not years.

There’s one formula that illustrates this marriage between adopting technology and business success the best… and that’s the “Optimal Technology Equation.”

I recommend you adopt this powerful “Optimal Technology Equation” in your business:

• Maintenance + Planning + Innovation (Adoption)=
• Enhanced Technology Capabilities=
• Reduced Costs + Increased Production=
• Increased Profitability.

Of course, this is only a brief explanation of this invaluable formula. Be one step ahead of the competition.

What Information Technology Management is About

The world is very much dependent on information technology because this is where businesses can get all of their information to customers or other consumers. Information technology is the study, development, and implementation with support of information systems. Information technology management is another step forward which takes the technology as a corporate resource where a company can organize it into an important tool to get their information to all targets. It can be used to help with business to gain new customers or to keep people abreast of all new things happening in the company.

Businesses who employ it must be in close relations with IT management in order for their businesses can use it to its optimum effectiveness. Topics that need to be understood to make information technology work is strategic planning, financial management, and risk analysis.

With this area of expertise becoming so much more important in this world, people can study this area at length. There are bachelor, masters, and doctorate degrees. There are many colleges who offer these courses. There are even courses online that allow some people with current jobs to take an online course at home. It helps people to accomplish a goal without adjusting their lifestyle too much.

To more closely look at the role of an IT manager, they must know how to plan, design, select, and use the new technologies that are coming out to integrate into the business that is employing them. Therefore, it is the ability of a person to effectively use the systems available to make it work for a business.

There are many resources online to find out more about this topic. There are schools who can help people decide if this is the career path that they would like to take. Businesses can get information on IT consultants who can help improve their businesses with setting up their system, and implementing the most economical system with up-to-date software.

There are journals available on all of the latest topics. They have some of the best people in the field keep other managers informed of new technologies being tested.

There can be specialists in different businesses who need information technology. Technology is advancing in every field, and it may take more expertise to implement information technology in certain fields because each field has its own specified systems.

Information technology management is a necessary field as our society continues to grow. Information technology are a set of technological systems which groups or businesses employ in order to spread the information which they produce or in turn, collect. Businesses may not be information technology businesses and need the assistance of those who are experts in the field to implement it into their business. IT managers are these people, and they can help to study a business and build the network of a business with the most economical and up-to-date systems. To become an IT manager, one can go to college advisors to find out if this is the field for them. There are many programs across the country.

The Importance of Information Technology Training from a Management Perspective

Information technology training for IT managers and systems analysts may seem superfluous – these folks are usually well-learned in their areas of expertise. But, do they understand how a company’s technology fits into the bigger picture from a business perspective? That’s where management training becomes important. Every manager who plays a role in researching, selecting or implementing enterprise technology needs to have a firm grasp on the basics of emerging technologies, as well as how they serve a larger business purpose, to ensure that technology is being used to the company’s best strategic advantage.

Stay Current on Revolutionary, Emerging Technology Applications

A program of continual information technology training is crucial to the success of any IT team. Technology is constantly evolving, and it seems that there is a new application released every day that is meant to simplify doing business. This can be overwhelming if you do not stay current on the high-level trends of technology and their corresponding impact on business. With the Web 2.0 revolution in full swing, management training is a useful tool for managers to become familiar with the online trends such as blogs, wikis, podcasts and RSS feeds, as well as how the trends are going to change the ways we view the Internet and communicate with each other. It is estimated that these technologies will have significant business impact in the coming years, and companies everywhere have to consider directly how it affects their business strategies.

Information technology training can help managers determine the impact of new technologies and how to adapt their business processes. Trying to envision how Web 2.0 changes traditional business models is difficult when you have no knowledge of how these new technical applications are being used from a business perspective. First and foremost, managers must take it upon themselves to become proactive by keeping abreast of emerging trends and understanding them not only from a technical standpoint, but evaluating them from a higher-level, strategic standpoint. Management training courses on technology focus specifically on the ways that emerging technologies affect businesses on a high level. This is the type of knowledge needed to make conscious and informed decisions on what aspects of new technologies will affect your organization in the next few years and transition your thoughts into strategic action and implementation.

Collaboration and information sharing, within and outside of enterprises, are two areas that have made huge strides that management training can help your organization harness to improve business strategies. The advent of user-created content sharing has transformed the way that enterprises communicate. Enterprise-class blogs and wikis boost productivity and innovation by enabling ad hoc teams to participate in complex, collaborative problem solving, and then make the results available to the rest of the organization with ease. Information technology training gives managers the high-level information about these technologies that they need to bring them effectively into your organization.

Large companies will often struggle the most with adopting new business strategies based on emerging technologies due to organizational inertia and the lag that comes from changing any integrated system. Not only do the right people need to be convinced of the value of a new application, but the proper infrastructure often needs to be developed or tweaked to implement the technology. This is where the importance of management information technology training to understand the potential impact of technology from a business perspective comes into play.

Management Training for Appropriate Technology Selection and Recommendation

Management training courses typically deal with logistics and personnel management but fail to guide managers when it comes to making decisions about technology. As a manager in today’s world, what really matters isn’t just your ability to lead and maintain technology infrastructure – it’s your ability to deliver positive business outcomes. Cutting IT costs and managing infrastructure are only part of the equation. Technology must also reduce business risk and generate new opportunities and growth. Information technology training can help managers transition their views of technology as an isolated island off the coast of a business and look at it as one working part of the whole machine that is the organization.

Finding a cool application that has all the shiny bells and whistles you dreamed of and recommending implementation based on the technology’s sheer innovation is no longer enough to make a good business case. Before presenting a recommendation, you must understand every step involved with the successful implementation of the technology. A thorough study will need to be conducted to determine what departments, processes and functions will need to be modified in order to benefit from the new technology. Management training courses focusing on information technology gives managers the tools they need to make that determination.

If you are going to make an impact on the decision makers of a business, you have to get on their level. When it comes down to making a decision, for many business people it is all about the numbers. That is why it is essential to participate in information technology training courses that help you perform your due diligence and gather the data you need to compile hard numbers around your recommendation. What is the true return on investment that the company can expect to achieve by implementing the technology? It is much easier to convince an associate of the merits of your idea if you can show a real increase in profit based on proven research instead of attempting to sway them based on opinion only.

Conclusion

Technology is rapidly changing the way that businesses communicate and function every day. It is important for managers to take a proactive role in understanding emerging technology trends and how they may affect a company’s business model by investing in an ongoing program of information technology training for all levels of staff. Management training in particular is essential for ensuring the right technologies are pursued to ensure business success. Viewing technology as a direct influencer on the business as a whole ensures consistent alignment of goals throughout the enterprise.