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The Greatest Defensive Move You Can Make for 2013

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Indicators point to a global economic slowdown and possibly another recession in 2013 and 2014. Europe’s debt crisis and the US “fiscal cliff” are major influencers and economic growth expectations are lowering considerably for the upcoming quarters.  And then there is the election.

Given the economic indicators and the increasing feeling of uncertainty, investments in cloud computing and application portfolio rationalization are attractive strategies to lower the overall future cost base.  Investments in cloud-based solutions can reduce the overhead of corporate applications by providing a usage-based cost structure.  Application portfolio rationalization efforts can reduce redundancy and inefficiency while realigning technology with the business.

Projects like these are most effective when cost relief is delivered as cost pressures mount in 2013 and before they become critical in 2014.  Cloud re-platforming and application portfolio rationalization can be longer-term plays, and the trick is to have the vision to get these projects started in time to finish when it matters.  Digging your well before you are thirsty is certainly a well-recognized leadership strategy and the best time to capitalize is when you are still riding high.

Increase the health of your organization by evaluating options to better manage resources used by existing applications to do more with less.  This was a critical success factor in 2009 as businesses tried to persevere.  It will likely separate the good IT leaders from the great during the next downturn.  It could be hyperbole to call it the greatest defensive move you can make, but this defensive strategy can create an attractive  balance of technology vision with market sensibilities.  Do you sense the decelerating growth in sales or margins?  What are you doing in Q4 and Q1 to help prepare yourself  to weather the storm?



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