InformationWeek

March 27, 2000

Managing Obsolescence

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he comment was voiced without a trace of plaint, but in a matter-of-fact tone that was in sharp contrast to the excited observations of the others taking part in the conversation. The subject under discussion was the E-business revolution and how it is forcing companies to revamp their plans, their infrastructures, and their very futures. The simple comment that gave me and others such pause was offered by the VP of IS at a consumer products company: "My job right now isn't managing progress, it's managing obsolescence."

Those 10 simple words sum up the underside of the E-business revolution. At a time when corporate--and personal--fortunes are flying so high and organizations of all stripes are touting their real, imagined, or anticipated successes, the reality is that for most companies the obsolescence issue represents the decidedly unglamorous scut work that must take place before progress can begin.

For all of the eminently sensible and incredibly seductive talk about how companies should, in the words of Debra Chrapaty of E-Trade, "blow themselves up" to prepare for their E-initiatives, the fact remains that most literally can't afford to do that. The vast rank and file of companies must, instead, deal with the mundane--a word I use very advisedly here--issues of deciding what to invest in and when to make those investments.

Complicating this already-tricky process is the fact that in many cases there seems to be resistance to making significant investments right now. As has been voiced to me innumerable times, IT executives today find themselves in a position that is best characterized as one of relative weakness. Consider that many of these same individuals leading the E-business charge were pushing hard for massive enterprise resource planning applications just a couple of years ago or for huge outlays for Y2K remediation. Do any examples of on-time, on-budget success spring to mind when massive enterprisewide projects of that sort are being discussed?

Such are the real-life scenarios confronting thought and strategic leaders who are attempting to drive their organizations forward to the high-ground positions they need to occupy in their markets. And those who are overseeing the corporate purse strings seem all to often to adopt and attitude of "Thanks just the same, but I like things as they are." And so, progress comes in small increments. And at a time when the pace of change is accelerating at such a frenetic clip, the slow path to progress can only set a business further behind in its market.

The issue, then, is surely one of obsolescence. The problem is, if obsolescence of technology or of thought is allowed to take hold, obsolescence of the organization is certain to result.

Lou Bertin is an industry consultant. He can be reached at Lou.Bertin@gte.net.


Rusty Weston: Matter Of Fact Rusty explores the facts and figures behind business technology.	Charles Pelton: Eye On IT Charles explores IT management issues and strategies that business and technology managers face.	Jason Levitt: Internet Zone Jason focuses on the strange, egregious, and the standard technologies of the intranet/Internet.	Stuart Johnston: Internet Zone As our eyes and ears in Redmond, Stuart gives his perspective on the latest events at Microsoft.