These Three Pillars Will Drive the Future of Tech

It’s projected that between 2020 and 2024, the direct investments into digital transformation will reach a total of US$7.8 trillion. In Latin America alone, spending on technology will grow 32 times more than the economy in 2023. This figure reinforces that IT modernization and innovation efforts have become essential for businesses to thrive as they move to increase competitiveness and customer experience. 

When I discuss IT modernization initiatives with business leaders across different industries, what I hear is that there is a real challenge in accomplishing them. In fact, according to a recent Kyndryl-commissioned research report from Forrester Consulting, only around half of organizations can effectively scale operations as needed (55%), quickly respond to disruptions (52%), and easily adapt to unforeseen events (48%), highlighting shortfalls in their current operations models. What I take from that is that it’s critical that enterprises approach IT modernization the right way to see the return on their investments. 

Challenges of IT Modernization 

In tech, modernization, security, and innovation can mean many things, such as adopting more intelligent, resilient and agile methodologies, or replacing legacy technologies, while bringing many benefits.  The benefits of these three pillars include streamlined business processes, better use of data and insights, and better interactions with customers and partners. 

Yet, IT modernization brings complexity and other challenges. When I think about implementing new technologies to modernize a system, for example, the first thing on my mind is how to address new potential security risks. At the same time, implementing cybersecurity measures can make it harder to innovate and slow down the pace of modernization. To succeed in the fast-paced world in which we run businesses today, we need to find the right balance.  

How to Succeed in IT Modernization? 

To address the complexity of these pillars, we need a holistic approach. We need to prioritize all three pillars equally and work toward finding a balance that works for their specific needs. This approach requires a deep understanding of the interdependence of these pillars and the risks associated with each. 

1. Managing cyber risks, including security and privacy, is not just a technological requirement but also a business requirement.  A major reason that IT modernization initiatives fall short is because not all companies realize that. My recommendation for companies is to develop a cyber-risk management plan for key business services powered by IT. They must prioritize their most important business services, including their supply chain partners, technology assets and data that power them, and develop a cyber-risk management plan that outlines specific actions to mitigate each identified risk. It’s critical that cybersecurity and resilience requirements are identified, designed, implemented, and operationalized throughout the business. 

2. From a data management standpoint, enterprises must reimagine their approach to cloud platforms, such as mainframe. This shouldn't be an all-or-nothing bet. As enterprises progress on their journey to cloud, they often either just maintain their mainframe as-is — since they do not know how to position it well as part of a hybrid cloud strategy —  or they move off the cloud platform since they have no one to support it due to a declining mainframe expert workforce. However, the modern mainframe is at the center of a successful cloud and IT modernization strategy. 

3. Enterprises should be deciding whether to take on the best cloud platform for each specific workload – whether they aim to modernize on the mainframe, integrate with the hyperscalers, or move workloads off to the cloud — rather than doing nothing, or perform a complete overhaul of their mainframe estate.  At nearly every level of the technology stack, from applications through IT infrastructure, the perceived complexity of the mainframe is masked by continuously evolving open tools and new platform features. While there may be gaps in skills, working with an experienced IT services provider can help fill those gaps and fuel change through comprehensive hiring and skills programs. This way, mainframe modernization enables enterprises to effectively manage costs and drive more value from their IT investments. 

4.  One of the most important and urgent priorities businesses need to address in order to thrive is the search for the right talent and skills. The talent shortage in the technology sector is not just a problem for businesses; it also has broader implications for the economy as a whole. A lack of skilled workers in critical areas, such as cybersecurity, could leave organizations vulnerable to cyberattacks, while a shortage of data scientists could limit the ability of businesses to extract insights from large amounts of data, among others. Addressing this issue will require a multifaceted approach that includes but is not limited to investment in IT education and training and diversity and inclusion initiatives. By taking proactive steps to address the talent shortage in the tech industry, businesses can position themselves for success in the rapidly evolving digital landscape. 

Focusing on the Future 

The pace of technological change is accelerating, and businesses must keep up to remain competitive and secure. However, this imperative cannot be achieved unless business leaders understand the need to prioritize modernization initiatives in every business plan. IT modernization efforts should focus on leveraging new technologies and architectures to streamline operations and increase agility. At the same time, enterprises must prioritize security and ensure that they have the necessary controls and measures in place to protect their data and systems. Finally, innovation is the key to staying ahead of the curve and anticipating future trends and needs. By investing in emerging technologies and fostering a culture of innovation, enterprises can position themselves for success in the rapidly evolving digital landscape.