Calypsi specialises in the provision of back end technology to deliver on the customer promise. Technical Debt is in up to 90% of mid size Australian businesses, impacting on their capacity to innovate and transform. www.calypsi.com for more information email info@calypsi.com
3. 90% of mid size businesses have technical debt*
*Calypsi estimates based on IT audits of medium sized Australian firms from 2010 to 2018
You can pay as you go for best practice, compliant, secure and reliable IT that can adapt to changing business
conditions or cut corners with short term thinking, create debt and operate with much greater risk.
40% of companies
have debts 3 x their
industry average IT
budget
20% of companies
have debts 6 x their
industry average IT
budget
40% of companies
have debts 4 x their
industry average IT
budget
SIZE OF DEBT AS A MULTIPLE OF ANNUAL IT
BUDGET
3 X
4 X
6 X
4. “At Risk” businesses create technical debt by
only focusing on User Facing IT
Technical debt in a ”At Risk” business is hidden
5. “At Risk” businesses have a pay day ahead, they:
• Face more frequent and longer system outages impacting employee
productivity and morale.
• Cannot adopt business transformation activities until significant amounts of
debt are cleared.
• Will have a significantly harder time implementing change.
• Have low levels of disaster resilience. Will loose time, money, reputation,
customers and face potential lawsuits.
• Struggle to meet regulations and fiduciary responsibilities.
• Cannot enforce risk management strategies.
Pay day ahead for ”At Risk” businesses
6. Symptoms of an ”At Risk” business
SYMPTOM IMPACT SOLUTION
Chaos and complex systems High levels of outages of IT investment Create an all-encompassing IT strategy
Limited disaster recovery plans Vulnerable to system outage, employee
downtime, lost productivity, focus, legal
costs, customer dissatisfaction or cyber
attack
Implement annual or bi-annual planning
and testing
Difficulty adding
new features
End user productivity is compromised
and loss of competitiveness
Implement a culture of continuous
improvement.
Costly break and fix exercises Cost of issue management 5 x that of
technically efficient businesses
Deploy an Integrated and standardised
system architecture in everything you do
‘At Risk’ levels of legal compliance Shortfalls in reporting, fraud, customer
protection and agreed service levels
IT risk leadership and transparency into
system compliance
No centralised control Costly governance and quality
management
IT leadership and enterprise wide view
across all workloads in the organisation
7. Symptoms of an ”At Risk” business
High Risk Low Risk
One of the many signs technical debt is growing in your organisation.
8. Consequences of inaction to resolve Technical Debt
Downtime in business
critical functions
If one piece of the system fails, it
can cause breakdowns in other systems,
due to tight dependencies and band-aid
solutions.
Reputation cost after
enforcement
cost in terms of
loss of customer confidence
can be many times higher
than IT costs.
Director’s liability from
software or process
short cuts
Loss of competitive
advantage
Inability to add features to keep pace
with rising customer expectations
TIME
LIABILITIES,
INEFFICIENCIES
AND COSTS
Liabilities grow as technical debt grows
9. Consequences of inaction to resolve Technical Debt
Damaged Reputation
after enforcement
Director liability
from internal or
external failures
Downtime
in business critical
functions
Loss of
competitive
advantage
99%
95%
50%
25%
Estimated likelihood of ‘At Risk’ business facing consequences by 2021 if technical debt unaddressed*
*Calypsi estimates based on IT audits of medium sized Australian firms from 2006 to 2019
10. The pathway to IT maturity and
recovery from technical debt
11. IMRPOVEINNOVATE
BUSINESS TRANSFORMATION
Efficiency
Effectiveness
Value
IT exceeds standard benchmarks and SLAs
Proactive problem management
Greater end user experience
IT leverages untapped capabilities in
systems
Greater capacity planning and budgeting
Greater capacity to innovate without shortcuts
Business focused outcomes not IT focused
Greater end user engagement in company goals
Improved user productivity and communication
Reliable and functional systems
Centralised control
Work to industry standards
Standardisation of systems and processes
24/7 management of IT risks
Regulatory compliance
pathway to
business
maturity
MAINTAIN
IT Maturity minimises technical risk and debt
12. Find out more about
building your value based
IT future
Meet with a Calypsi consultant for a one on one
discussion about your needs and opportunities
call 1300 408 408
email noel.lynam@calypsi.com
