Building a technology strategy requires careful thought to architecture, much like building a house. NEFA’s (National Equipment Finance Association) NEWSLINE magazine is publishing a three-part series, “Crucial Considerations for Your Technology Strategy.”
In the Jan/Feb Industry Outlook issue, I teamed up with Kristian Dolan, CLFP, CEO of Northteq, for Part Two of this series, in an article titled “Architectural Considerations.”
In the equipment finance industry, we encounter many situations, such as duplicate applications, disconnected data sources, unfrequented systems and the inability to track key metrics. Another term for these messy situations? “Accidental Architecture.”
This happens when there is no careful planning and forethought to the strategic technology and process roadmap, which brings to mind an extreme but reminiscent example of the Winchester Mystery House in San Jose, California.
Even with rich functionality and cutting-edge technology, there was no interoperability. 65 doors to blank walls, 13 abandoned staircases, rooms built around rooms and even a door to nowhere. The property’s construction rumored to have over 100 builders and NO architect.
Stepping back to consider long-term strategy is a first step in architecting with intention.
A fundamental decision for your technology architecture is hosting. When considering, it is beneficial to understand the differences and drawbacks of different solutions. Is the Private Cloud, Public Cloud or a Platform Cloud better for your business? And why?
You have to ask yourself questions like:
- “Are there internal resources available to maintain the hardware and software?”
- “What are the security and privacy options?”
- “Is there flexibility in terms of upgrades and new capabilities?”
At a high level, there are two primary paths you can go when you are looking to implement software: Traditional Software and Platform. Making this decision is an integral part of your company’s system landscape.
After you familiarize yourself with the key differences in these two options, you can better formulate your long-term strategy. Do you want to work with one vendor and ride-the-train or do you want to harness third-party services to take ownership over defining your niche?
Cobbling together disparate systems with no interconnectivity, duplicate applications and no trustworthy critical data source can make your system landscape a bit like the Winchester Mystery house. Instead, considering key architectural fundamentals in your strategic roadmap can help you to develop a robust digital foundation for the future.
About NEFA Newsline Magazine
NEFA Newsline is the official magazine of the National Equipment Finance Association and published bi-monthly. NEFA’s members are highly skilled in their fields and believe that working together to advance the equipment leasing and financing industry is highly important and best achieved by working collectively. You can learn more about NEFA, its mission and become a member HERE.