On developing an effective IT modernization strategy
Information technology (IT) is constantly evolving. As the owner of a small to midsize business, you’ve probably been told this so often that you’re tired of hearing it. Yet technology’s ceaseless march into the future continues and, apparently, many companies aren’t so sure they can keep up.
In October of last year, IT infrastructure services provider Kyndryl released its 2024 Kyndryl Readiness Report. It disclosed the results of a survey of 3,200 senior decision-makers across 25 industries in 18 global markets, including the United States. The survey found that, though 90% of respondents describe their IT infrastructures as “best in class,” only 39% believe their infrastructures are ready to manage future risks.
A tricky necessity
The concept and challenge of keeping business technology current is called “IT modernization.” And to be clear, the term doesn’t refer only to IT infrastructure — which includes your hardware, software, internal networks, cloud services and cybersecurity measures. It also refers to your company’s IT policies and procedures.
To stay competitive in most industries today, some more than others, you’ve got to modernize everything continuously. But here’s the tricky part: You have to approach IT modernization carefully and cost-consciously. Otherwise, you could wind up throwing money at the problem, severely straining your cash flow and even putting the business at financial risk.
4 tips for getting it right
So, how can you develop an effective IT modernization strategy? Here are four tips to consider:
- Begin with an IT audit. Many small to midsize businesses develop their technology improvisationally. As a result, they may not be fully aware of everything they have or are doing. If you really want to succeed at IT modernization, a logical first step is to conduct a formal, systematic review of your infrastructure, policies, procedures and usage. Only when you know what you’ve got can you determine what needs to be upgraded, replaced or eliminated.
- Align modernization with strategic objectives. It’s all too easy to let IT modernization become a game of “keeping up with the Joneses.” You might learn of a competitor investing in a certain type of hardware or software and assume you’d better follow suit. However, your modernization moves must always follow in lockstep with your strategic goals. For each one, ensure you can clearly rationalize and project how it will bring about a desired business outcome. Never lose sight of return on investment.
- Take a phased, pragmatic approach. Another mistake many small to midsize business owners make is feeling like they’ve fallen so far behind technologically that they must undertake a “big bang” and effectively recreate their IT infrastructures. This is a huge risk, not to mention a major expense. Generally, it’s better to modernize in carefully planned phases that will have the broadest positive impact. Prioritize mission-critical areas, such as core business applications and cybersecurity, and go from there.
- Train and upskill your people. As funny as this may sound, IT modernization isn’t just about technology; it’s also about your users. If your employees don’t have the right skills, attitude and security-minded approach to technology, the most up-to-date systems in the world won’t do you much good. So, as you mindfully develop every aspect of your IT infrastructure, policies and procedures, pay close attention to how modernization initiatives will affect your people. Be prepared to invest in the training and upskilling needed to roll with the changes.
Tech support
The evolution of business technology will be ongoing — especially now that artificial intelligence has taken hold in nearly every sector and industry. The good news is that you don’t have to undertake IT modernization alone. Be sure to leverage external relationships with trusted consultants and software vendors. And don’t forget our firm — we can provide tailored cost analysis and financial insights to support your company’s technological evolution.
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