How To Fix Technical Debt?
Many organizations have issues in regards to how technology is currently managed. One perspective firm's should keep in mind is that always using the latest technology could be an issue because the labor associated to that technology is expensive, there is a short labor supply, and some of the older systems may or may not work with it. On the other hand, if one uses the oldest technology, technical debt will build up, there could over the years be a short labor supply to service that technology, and it will be expensive to replace. Most firms should follow the reversion to the mean approach, which is regarded as a methodology coined in capital markets for statistics, but can be used across all industries. This means that use average technology associated to the business problem because there is ample labor available, it's not too risky, and easy to maintain. The question should always be is this specific technology needed? Who will support it? How much will it cost? How much will my firm profit on? What business features are obtainable in this technical solution rather than other technical solutions? As always keep things simple, and business driven.
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Michael Kelly has been working within banking technology for over a decade, and his experience spans across algorithmic trading, project management, product management, alternative finance, hedge funds, private equity, and machine learning. This page is intended to educate others across interesting topics, inclusive of finance.