Laser Focus Your IT Strategy

Sponsored by D+H

lanning an IT strategy for any organization is challenging, but credit unions face additional complexities from regulatory and security requirements. And because CUs typically have limited IT staff to address desktop support, server hardware, applications, physical connectivity and other technical requirements, managers must search for new ways to address business needs while still being efficient and within budget.

How can you balance your internal IT staff resources with the technical and business requirements of your financial institution? To be successful, your IT strategy must be laser focused. With the plethora of technologies that exist and the additional ones that are released each day, it is easy for an IT organization to get engrossed with the tactical aspects of technology before defining business requirements. Especially when limited resources and budget constraints exist, expending time and effort on extraneous projects cannot be afforded.

While some define their focus for the coming year based on available technology, successful financial institutions align the technical strategy based on their predefined business strategy. For example, if your board of directors has chosen to focus on operational efficiency, the IT organization would seek budget and resources focused on acquiring new technologies that minimize manual processes, with the idea of supporting the overall efficiency goal.

At the same time, a business strategy that IT must insist on is support for upgrading existing systems. The implications of not upgrading--from a security, functionality, efficiency and supportability perspective--can be significant and may not be fully understood by business leaders.

Existing technologies that may need upgrading can principally be categorized into three areas:

1) hardware/equipment,

2) software applications and

3) systems/processes.

If any of these items are allowed to age beyond their expected technical life, it is likely your organization will experience failures, vendor support issues and security vulnerabilities. In all cases, proper maintenance is critical for maximizing the lives of your systems. Upgrading hardware, software and systems is inevitable, but some options exist to extend the usefulness of various components.

For example, servers and workstations are less prone to failure when run in a cold environment, so the cost of running the air conditioning on weekends, especially during warm summer months, should be factored into extended equipment life. Nonetheless, as proprietary hardware components are discontinued by the manufacturer, maintaining unsupported systems introduces risks.

As an example, although Windows XP workstations and Windows Server 2003 have exceeded end of life, some credit unions continue to run these operating systems because it appears to be prudent from a cost standpoint. However, when security vulnerabilities and lack of support are factored in, just one incident or breach can far exceed any perceived benefit.

One of the most difficult aspects that IT leaders address is the status quo mindset. Most people are resistant to change because keeping the same systems in place is easier. But financial services is now a technology-based industry, and change is unavoidable. Your IT strategy large depends on your institution's business strategy. And although defining an IT strategy may take some time and effort, it is one of the most important steps for making good technology management decisions. While devising your strategy, also consider technology providers that can help. With limited personnel, a lengthy list of tactical goals and a constantly changing IT landscape, it’s common for community financial institutions to enlist the expertise of service provider professionals.

To be successful, make sure your business strategy is defined, align it with your IT strategy, and begin evaluating your existing IT environment to ensure you’re on a successful path. Once an overall strategy is determined, the IT staff serves as the conduit for implementing the technical aspects.

Kristen Jason is solutions marketing manager/financial solutions, for CUES Supplier member D+H, Lake Mary, Fla. Before joining D+H, she worked for a regional bank and a trade association for auditors. She holds an MBA from the University of Central Florida.