Three technology myths CIOs should stop believing

Technology decisions can easily become driven by hype, but CIOs need to start with the business problem they are trying to solve rather than the latest technology trend. In an article for IT Brief Australia, Tal Nathan, Regional CTO at Rimini Street ANZ, challenges three common assumptions about enterprise technology and AI (artificial intelligence).

The three myths are:

• Software has a shelf life. Older software isn’t automatically obsolete simply because newer versions exist. The more important question is whether the system still performs the business function the organization needs. Nathan points to financial institutions that continue to rely on long-standing core systems while adding newer digital capabilities around them.
• AI itself is a business outcome. AI can improve individual productivity, but that doesn’t necessarily translate into measurable business results. Nathan argues that organizations should focus on applying AI to operational processes, such as processing invoices, onboarding customers, managing inventory or closing the books.
• You need to upgrade your ERP to use AI. Organizations don’t necessarily need to migrate to the newest ERP (enterprise resource planning) version to take advantage of AI. AI can potentially connect with existing systems and data, allowing companies to improve specific business processes without replacing the entire ERP.

The broader point is that technology strategy should follow business needs, not the other way around. Instead of automatically replacing systems or starting with an AI product and looking for somewhere to use it, CIOs can first identify the processes they want to improve and then determine what technology is actually needed. For organizations managing long-standing ERP environments, that can mean finding ways to extend useful existing systems while introducing newer technology where it provides measurable value.

 

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