04.10.12

The IT Ponzi Scheme

Posted in Enterprise Architecture, Project Management at 5:58 am by Administrator

A Programmer’s Secret

[Cartoon]

Business software maintenance is a big Ponzi scheme. A system is initially built with the best intentions to construct a quality product. Because the business environment changes over time, the system must be modified by the IT department. The modifications are more often applied with duct-tape solutions that appear to be good investments. Unfortunately, continuously applying duct-tape solutions will result in business software that will eventually need replacement.

Just like a Ponzi scheme, the business management invests capital to bring in the new system. To install the system, the IT department will need to make a few changes to integrate the system into the business environment. As more projects are initiated, more changes are made to the software. Each project is another investment. Just like a Ponzi scheme, the return on the investment is exaggerated due to duct-tape solutions. If the solutions were applied to maintain the integrity of the software’s design, the return on investment would not appear as favorable.

Now don’t for one second think that I believe that the IT department is consciously running a Ponzi scheme. They are doing what they think is best for their organization and trying to find solutions that will allow them to meet the schedules set by the business management. But they do not recognize their problems.

One problem that exists in all IT departments is their staff, which is average. They will have a few exceptional individuals and the remainder will be average or below. This means that as projects are designed and developed, the outcome of the work will be average.

Another problem is the schedule, which is usually too aggressive to allow for the application of quality solutions. More often than most IT departments would like to admit, they determine the approach to completing a project on time by considering their ability to deliver within the schedule. They are less interested in the long-term effect of changes on the system. It is not that they are unaware. They simply say, “We can fix that later.” Unfortunately, they are never funded to come back later.

After changes are applied over time the hidden costs of the duck-tape solutions begin to show. The CIO finds it difficult to meet schedules and is often replaced. At some point, the software becomes unmanageable and falls like a Ponzi scheme. Then, like most business management, they pony up for another investment in the form of a new system and a new CIO.

This cycle needs to stop and Enterprise Architects know how to stop it. They stop duct-tape solutions. They know that no matter how sincere a project team may be, they will never go back and clean up duct-tape solutions applied in a project.

Enterprise Architects follow processes that can expose duct-tape solutions. They examine the systems architecture and make sure that all changes are either within the architecture or in some way enhances the architecture. They are aware of the business environment and often recommend projects to get prepared so duct-tape solutions do not become the only way to meet a schedule.

When an organization’s IT department operates without the oversight of an Enterprise Architect, it will engage in Ponzi schemes. CIOs hope that they will not get caught, but know they can move on to another organization and begin the Ponzi scheme again.


Enterprise Architects are well-aware of the continuing evolution of technology. They creatively look for technology convergence that can provide breakthroughs in thinking. We are at one of those convergent junctions today. What is about to happen will give non-professional information technologists control of their use of automation in their business. No longer will they simply peer through windows and see only what applications let them see. They will be able to go inside, see how things work, and control their automation. – Enterprise Architects Masters of the Unseen City
youtubeClosing the Business / IT gap.

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