target audience: TECH BUYER Publication date: Apr 2024 - Document type: IDC PlanScape - Doc Document number: # US51849124
IDC PlanScape: Enterprise Tech Debt Leverage
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Abstract
This IDC PlanScape provides a detailed explanation of how to calculate enterprise tech debt leverage (ETDL) to establish a common language for discussing tech debt with the executive team and the board. Without such measurement and common language, tech debt is a pure liability that hampers innovation and delays transformative efforts within enterprises. By proactively measuring and managing enterprise tech debt and establishing a common business language with which to contain that measurement, CIOs can elevate the discussion of tech debt within their organization. This concept enables tech debt to become another lever that can be pulled to help meet strategic goals while the prioritization of efforts to pay tech debt interest is consciously addressed by the executive team. Implementing the process outlined here frames the discussion in a way that the board can easily connect with.
"Measuring enterprise tech debt leverage provides a common language for raising awareness of the systemic risk that arises from tech debt throughout the tech stack," says Dr. Ken Knapton, adjunct research advisor, IT Executive Programs (IEP), IDC. "Creating a common business language that your peers, executives, and board can understand is a powerful tool that can assist in prioritizing the reduction of that debt."