There’s an old saying that can be attributed to various sources, including Proverbs, that goes something like this:
A smart man learns from his mistakes, but a wise man learns from the mistakes of others.
This principle can be applied in so many ways, including technology upgrades.
Below is a LinkedIn post from Miguel Edwards, CEO of FiveM, LLC, on 20 lessons he has learned from doing said upgrades over the last 20 years. Over this timespan, Miguel has held a variety of positions in the insurance industry ranging from Project Manager to Chief Information Officer. Today, he helps insurance carriers define and execute these type of transformational initiatives through his consulting firm.
There are other insights from a business and risk perspective I would like to add.
As I state often, the focus of ERM should be the achievement of business and strategic objectives, not preventing failure.
This concept applies to technology as well, since technology should be an enabler of achieving objectives and not exist for its own sake.
Therefore, technology risk is actually the potential technology-related obstacles or opportunities to achieving objectives.
Technology certainly includes systems and data, but many overlook the fact that technology should include mindset and culture as well. In other words, what is the perception of how technology is leveraged throughout the organization?
This is vitally important because unfortunately company leaders frequently get what I call “shiny-object syndrome.” A salesman (often at a conference) shows how a software or new tech-tool has all these bells and whistles, it can do all these great things. The executive gets dazzled and decides they need that new thing without stopping and asking themselves some tough questions. Decision-makers see the so-called potential and jump in, just to watch the system languish or (at best) not be used to its full potential.
Instead of this “dazzled” approach, the better course is to understand what the company wants to accomplish (those objectives) and then choose tools that will directly support those objectives.
Technology decisions – whether upgrades or saying goodbye – have taken even greater significance in recent years with the explosive growth in generative AI, persistent issues around cybersecurity, and changing consumer demands, among other reasons. It’s not as simple as setting something up and flipping an ‘On’ switch.
As Miguel’s lessons learned and our subsequent risk insights show, talent, culture, and objectives are of greater importance to a successful technology transformation than whatever tools the company actually chooses.
Additional resources where you can learn the ins and outs about technology upgrades and more include:
- Miguel Edwards on LinkedIn – although his tech commentary focuses on the insurance industry, there are helpful insights applicable to any company.
- FiveM, LLC – Miguel’s firm where you can find additional eBooks on what makes for a successful tech modernization.
- Interview w/ Miguel on harnessing ERM for growth
- Disruptive Technology – Is your Company Making a Strategic Decision or Being Reactive?
- Is Technology Enabling or Hindering your Company’s Success?
- Is Technology Risk Bigger Than “Cyber” Risk?
- Innovation: Why Companies Shouldn’t Try to Keep Up With the Joneses
- Why Strategic Implementations Often Fail and the Counterintuitive Way to Address It
- Why Saying “Our Culture is a Risk” is Futile and What to Do Instead
- 4 Steps to Integrating ERM into Vendor Management
Are there other points you would add to Miguel’s lessons learned list?
Has your company ‘put the cart before the horse’ when it comes to technology upgrades?
We welcome your thoughts – please join the conversation on LinkedIn.
