Often perceived as a key ingredient of a firm\u2019s IT strategy, simplification is \u00a0essential to achieving business goals. Scalability, robust and flexible data platforms and agility are all impeded by complex IT infrastructures. Introducing new technologies offers the opportunity to deliver a step change in capability, efficiency and robustness \u2013 enabling improved products, data analytics, client reporting and business intelligence.<\/p>\n
Yet all too frequently, projects focus on adding more, new things, missing the crucial benefits of decommissioning, simplification and rationalisation.<\/p>\n
Simplification is not some passive inevitability: it needs to be actively managed. Implementing a new system or data tool does not necessarily mean legacy technologies are retired. Without a clear strategy to reduce complexity, firms end up with a shiny veneer sitting on top of a clunky, risky and inefficient core, all of which adds cost, creates risk and reduces agility.<\/p>\n
This challenge is then further exacerbated by the fact that so many core capabilities in asset management are now delivered by service providers. Particular care needs to be taken to ensure that the risks and issues related to legacy systems become one, two or possibly more steps removed from the latest initiative.<\/p>\n
So what does good look like?<\/strong><\/p>\n First, there needs to be a clear view of what constitutes IT simplicity. Is it better to have a few systems used by multiple functions or teams?\u00a0 Should the goal be to minimise the overall IT footprint and rely on services and cloud-based solutions?\u00a0\u00a0 Does standardisation of the underlying technology stacks across applications help?\u00a0 Should touchpoints between systems and teams be minimised?<\/p>\n A good simplification strategy will address many of these goals in parallel. In particular it will identify:<\/p>\n