Technical Debt and Innovation Trends in Manufacturing and Distribution
By Sharon Lindstrom - Global Leader, Manufacturing and Distribution Industry Practice, Protiviti
By the numbers: Overall, organisations today spend an average of 30% of their IT budgets on and invest a fifth of their IT human resources in technical debt management.
- This research, based on a global survey of more than 1,000 CIOs, CTOs and other technology leaders, underscores the burden created by technical debt and likely is an eye-opener for those in many different business segments.
- Not surprisingly, these numbers trend higher for manufacturing and distribution organisations.
But there’s good news: Manufacturing and distribution organisations, which tend to lag other industries when it comes to innovation and digital transformation, are breaking out of this stereotype. Our research reveals that more than three out of four companies in the manufacturing and distribution industry group – 78% – have clearly defined innovation goals, and for manufacturers specifically, that number leaps to 93%.
Key takeaway: More manufacturing and distribution organisations are adopting an innovation mindset.
While the manufacturing and distribution industry segment faces challenges that are different from other industries and often unique, innovation and transformation, along with the mitigation of technical debt, are top priorities for their technology leaders, which is good to see. These executives and leaders should continue to explore and accelerate new ways to fuel innovation throughout their organisations.
However, many roadblocks remain, not the least of which is the burden of technical debt, which hampers the organisation’s ability to innovate and grow.
Technology executives will need to partner with their executive counterparts to ensure the enterprise is innovating in a responsible way and with a proper focus on internal controls. In addition, technical debt management should be a top-of-mind issue, and both technology and finance executives should lead in addressing technical debt and spearhead efforts to reduce its long-term burden on the organisation.
Protiviti surveyed more than 1,000 CIOs, CTOs, CISOs and other technology executives and leaders (n = 1,050) to ascertain the status of several concepts around innovation and technical debt across numerous regions, business types, revenue classes and management roles.
The respondents answered 18 survey questions which were collated and then transferred into reportable elements with totals, averages and divisions based upon the size of the organisation, the location of the organisation, the industry and the role the respondent played within the organisation.
Read our report, The Innovation vs. Technical Debt Tug of War, here.