16 business focus Will old IT systems cost you money?
We’ve all got old systems somewhere, servicing our customers, supporting our supply chain, or pulling together management information, writes Colin Bezant of PwC
They might not be perfect, but continuing to run them is a lot more affordable than a risky project to replace them. What could go wrong? Well, as recent failures such RBS and Natwest in the banking sector have shown, it can disrupt your business and cost you millions if these systems do go wrong. And it’s a lot more likely to happen than you think.
For example, software companies perform upgrades to keep up with the latest hardware and vice versa with the hardware companies. This means that your old system probably runs on computer hardware that isn’t available any more. It’s not unknown for an IT manager to scout for replacement parts on eBay, because the bits that will keep things going are no longer available from the supplier.
Then there’s the issue of finding people with the right skills to do the job. Once your system has got
old and unusual, you find less and less service providers willing to support it or, if they do, it may be that the person fixing your system is trying to do it from a twenty year old manual downloaded from the Internet.
In addition, your old system is likely to be less flexible. When your business requirements change or you need different management information – is it a case of a few changes to your software package, or a whole new range of spreadsheets from an already overworked accounts department?
Having said all of this, many old systems are good and faithful servants with many years life in them yet. The difficulty comes in knowing whether yours is one of the good ones . It’s a hard call for an IT manager to make, because they may be seen as trying to increase their budget or secure
the big project that is far more interesting to run and maintain, and it’s a hard call for a CFO to make when they are looking to manage investment in difficult times.
In our view, it’s worth taking stock and asking a few questions, honestly and openly.
1) If any of the top 10 risks to my business I have identified happened, would my IT systems be able to cope?
2) Do we have appropriate plans in place for all of our key IT systems to ensure that they can continue to run smoothly for longer than it would take to replace them?
3) Do we have sufficient skills and knowledge to support each of our key IT systems for the foreseeable future – either in house or outsourced?
Of course, these questions can entrepreneurs HW winners in the Thames Valley
November 1 sees the culmination of a tremendous season for the Haines Watts Young Entrepreneur competition, with the exciting finals being held in Reading, writes John Bailey, chairman of the Young Entrepreneur finals 2012
Soon the candidate shortlist will be compiled and interviews for the finalists will take place at HW offices across the Thames Valley.
Once again the standard of entries has been extremely high and confirms the fact that young talent is alive and well and determined to shine through even the darkest days of recession and faltering recovery.
We look forward to being able to report on the winners in the next issue who will receive, among other prizes, a year’s free business mentoring with a partner from Haines Watts.
While we salute the determination and innovation of the HW young entrepreneur entrants, we recognise the need for many more young entrepreneurs in this country. We must have more young people to be our future business leaders and drive our economy forward. Haines Watts will continue to support them in their endeavours wherever possible.
For further information about Haines Watts Details:
www.hwca.com
www.businessmag.co.uk
Avoiding entrepreneurs leaving the UK
Fast-growing technology firms need more than a lower IPO minimum, says a British entrepreneur.
Technology companies could be allowed to list on the London Stock Exchange for as little as 10% of their business under new proposals being considered by the Government. Currently, tech firms need to float at least 25% of their business on the LSE. But with more firms looking outside the UK for investment, new measures to reduce the minimum float are gaining senior support.
Dan Wagner, serial British entrepreneur, says this latest initiative doesn’t go far enough.
He said, “The UK is starting to produce some powerful global technology companies. This is down to a growing culture of innovation. But in order for this fledgling sector to flourish and develop, the Government needs to put in place a more holistic and proactive support mechanism to stop British entrepreneurs deserting the UK. A key component of this needs to be creating better understanding within the British investment community of the significant value and positive contribution that tech companies are making to the British economy and job creation.”
THE BUSINESS MAGAZINE – THAMES VALLEY – OCTOBER 2012
be hard to answer objectively, so it may be worth getting an independent view, from someone with the experience of similar situations.
Details: Colin Bezant 0118-9383435
colin.d.bezant@
uk.pwc.com
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