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What is tech debt, specifically in the context of enterprise tech debt? It refers to the cumulative technology-related costs that an organization incurs over time.
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Tech Debt in Modern Enterprise.

TECH DEBT
No one likes talking about Debt and Tech Debt is not different.

But if you’re a Technical or Business Leader of a large enterprise organization, you should understand the implications -

especially as you take more responsibility of vision and strategy.

But what is Tech Debt. Let’s take a quick primer as another segment in our Baseline Knowledge series.



Prior reference to Tech Debt typically was usually about Software Development,
as vendors maddeningly chase new features
via a design journey from Alpha, to Beta, and ultimately Gold Master.


As the chase went, little or inadequate level of attention falls to problem code as they become a residual issue -

the priority is always about advancing the code( aka speed),
not fixing prior issues -

those issues can compound, thus the term Tech Debt.

But at TechGno, we turn Tech Talk into Biz Talk, and we’re highlighting what probably should be called Enterprise Tech Debt -

as it’s not just about software code -

it’s about aggregate tech costs to the organization -

and what’s most frightening, is that some of these are hidden, institutional-like costs that hide under periods of growth and profitability -

but sooner or later, they have the potential to cripple the enterprise.

McKinsey recommends large enterprise develop data-driven insights to build a strategy for paying down the tech debt that stands in the way of business modernization.

They call Tech Debt “the tax a company pays and accounts for about 40 percent of IT balance sheets.”

To me Enterprise Tech Debt goes way beyond software development and tech systems -
as I see it as a broader opportunity for organizations to continually keep themselves financially fit.

Tech Target even highlights Job Security through Obscurity as a cause of tech debt.

In the modern enterprise, tech debt is a significant concern, especially when dealing with legacy systems that are integral to business operations.

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The costs of tech debt are not merely financial; they can also impact product quality, slow down new feature development, and reduce system reliability and performance.

Companies face challenges in balancing the need to innovate and develop new features with the necessity of addressing legacy costs such as tech debt.

Many enterprises modernize via cloud adoption as a means to disconnect from legacy tie-ins - it’s analogous to the home homer cutting the cord.

As you work across your organization, keep Tech Debt in mind and be a good steward for long term success, not just the current quarter’s immediate outcomes.

TechGno turns tech talk into biz talk, we’ve got a whole Baseline Knowledge series and you should find our Regular Tech News and Feature Segments worthy - so be sure to subscribe to TechGno.


And hey, hope to see you on the other side.

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