CFO or chief financial officer of your company has a huge responsibility of managing bad technology debt of your firm. As a CFO, you should know your role properly. It is your duty to perform the proper strategic work of the company and execute it well. Technology plays a vital role in any company. The work of CFO is to make proper financial strategies which is important for debt recovery. CFO works under the assistance of CIO or the chief information officer to understand the technical terms well. The CFO should have clear knowledge about technology. Without proper knowledge you as a CFO will not be able to guide the various plans and strategies of the company.
Find the Apparent Places
There are some company sectors where tech debts are mandatory. The software development process is one such place for technology. It is safe if you clear all your technical debt. Delaying of the payment of technical debts will create adverse situations for the software. The more you delay the interest of the debt accumulates and ultimately takes a huge shape. Then it becomes very hard to cope with such situations. Sometimes the necessary implementation becomes very hard to install for the accurate programming because of such postponement in clearing debt.
Life end systems
Legacy system of most of the business is known as end of life. Software, hardware, development, support costs etc. are considered as the end of life system. They are used as major support to the company. These systems need proper up gradation after a span of time. As a CFO you should replace these parts as soon as possible. It is your work to supervise all these issues. You as a CFO should utilize your resources for proper amendments. A huge portion of the business depends upon all these systems. You have to engage your resources properly for proper management of any technical debt.
Differences between technical and financial debt
Consolidation of the debit and credit card is one of the most important issues a CFO should know. As a CFO you should know what financial debt is and what technical debt is. If you have proper monetary income then repayment of financial debt will be easy. For the payment of technical debt you need skilled experts. Codes are changed by refactoring. But in some cases some codes cannot be changed. You need to invest lots of effort for new inventions.
Know proper design
There are several tech debts. Some of them are good tech debt whereas some of them are bad tech debt. As a CFO you should have the knowledge about your company’s requirement. You should know which tech debt is good for your company. Tech debt enhances the growth and expansion of your company. It enhances the value of your company in the market. You can also manage your finance with the help of proper technology. As a CFO you should know the difference between good and bad tech debt and choose the correct tech debt. It will ultimately help you to achieve success in your business and gain both money and fame. For more information you can click here.