Our 70% of the budget is spent on light’s on and remaining on developing new systems; Business is not ready to spend more, but always asking for more; When we showcase any new technology to the business for additional budget, they are excited but in the end, they do not want to change. When the Vice President of Technology of a mid-size company was expressing his frustration, it was obvious that they are not excited with any new technology that may hold huge promises.
It is simply because change is not in the hands of IT, but the business leaders. Over last two years, ScrumStart found interesting facts that give a very different picture of what the tech world finds from the popular tech news across different channels. Much hyped Hadoop (Big Data) did not change the world as promised but ended up becoming an extension of data analytics that otherwise was more expensive and slower. The growth of Big data was not in expected lines that comes with a fact that CEBIT Hannover that had a hall full of Big Data companies in 2013 did not have a single in 2016. A friend who owns a company that specializes in Block-chain had a similar story to tell. A lot of press, many companies to compete with, but too little business to justify the existence. Companies specializing in artificial intelligence too had similar stories of a lot of hype, but too little work to justify the spend.
Does it mean that new technologies fail? Or it is just a media hype?
The answer probably comes from the statements of the VP who represented the majority of IT consumers who are excited about new technologies to improve their knowledge, but does not get the sponsorship to experiment and try the same for their business, who almost always prefer stability and incremental improvements against a great technology and a big bang change.
ScrumStart survey found that CIOs are mostly unable to convince their sponsors to spend on new technologies to experiment with their business needs. As an established habit, business leaders and mainly the CFO community demand proven and stable technologies with a solid ROI, that does not happen with the new technologies on the block. CIOs struggle to hire talent with new tech experience while vendors go for their kill, quoting high expenses whenever such opportunity comes. Most of the CIOs step back and feel comfortable with a slow walk to experiment and adopt any new technology; even though the hype around them may promise the moon. New technologies are adopted by the majority of businesses, but not when they are new, but when they have proven their stability, superiority, and promise for ROI that business feels comfortable with.
A brief study of Mid-Sized companies done by ScrumStart in the US found that the IT workforce and leadership they deploy do not have the adequate handle to make any major impact on the business outcomes, except keeping lights-on and keep doing incremental change that is mostly inadequate. Most of them cite budget constraints as the key reason for such a stalemate. ScrumStart Virtual Captive can be just the answer to this problem. ScrumStart Virtual Captive can not only give immense cost advantage but also comes with an advisory on shaping up the technology roadmap and a research and development team that supports low-cost experiments to find the benefit of new technologies on the business goals.
Download our latest whitepaper on Virtual Captive Solution.