Mitigate software obsolescence and cyber risk using. Obsolescence risk assessment process, management and. This risk occurs when a process or product that is either used or made by a company runs the risk of becoming obsolete and will not be competitive in the market any longer. Obsolescence of manufacturing and repair facilities 19. The 6 hidden costs of technology obsolescence and how to. Obsolescence of manufacturing and repair facilities 19 3.
You then assess risks of obsolescence of these components to. Security risks and technology obsolescence reduce smart meter. The guideline has been designed to promote a robust management practice to enhance. But, two drivers that typically kick off the initiative are improved reliability and increased performance. Obsolescence forecasting can be broken down into two groups, obsolescence risk forecasting and lifecycle forecasting.
The same site may have 400 software components, of which it is likely a higher percentage will be medium or high risk, say 50 %. Cloud adoption propels productivity growth and should be at the center of. An analysis of obsolescence risk in it systems springerlink. The reasons of the obsolescence are technology advancements 6, lack of support from vendors 6, merger and acquisition of a business 7 and incompatible. Risk identification and management is a critical part of software project management and the various kinds of risks which could be present in a software project are described here.
Military systems typically outlive most of their internal components, giving rise to parts obsolescence. Customer is passing the obsolescence risk to the contractors lack of skills and resources to predict and monitor software obsolescence reactive approach often. How to reduce automation obsolescence risks without losing. Obsolescence risk forecasting generates a probability that a part or other.
Information security federal financial institutions. Ignoring technology obsolescence and only considering classical failure rates will result in a gross overstatement of the useful life of a smart meter. The obsolescence risk assessment for the bill of materials bom is a paramount activity in order to manage obsolescence proactively and costeffectively. The probability of obsolescence of software components can be determined by considering the probabilities of the various causes of software obsolescence occurring for your systems. Obsolescence risk is most significant for technologybased companies. This summary contains input from nine members on their approaches to managing it obsolescence of it assets i. Operating legacy equipment beyond its obsolescence date will always carry a degree of risk. For it managers overseeing data storage and maintenance, the. The problem of technology obsolescence in information intensive businesses software and hardware no longer being supported and replaced by improved and different solutions and a cost constrained market can severely increase costs and operational, and ultimately reputation risk. So as an estimate you could expect software obsolescence management to be around 1020 %. Software obsolescence more specifically cots commercial off the shelf software obsolescence is generally due to one of three main causes. This articles describes what is meant by risk and also the various categories of risk associated with software project management. Both forms of obsolescence are defined and the effects on software and hardware are discussed, together with the consequence for cost of ownership of it systems.
Software obsolescence complicating the part and technology. Financial institutions that dont pay attention to deployed technology that is reaching obsolescence face a much greater risk of cyberattack than those who do. A guideline for managing risk from technology obsolescence. In the following we show for each of these steps how it can be. As the field of software development becomes more and more complex, the. The paper discusses the importance of risk management strategies retailers while. Alma, obsolescence, software, computing, processes, risk. Avoiding technological obsolescence digital preservation. There are two main categories of digital obsolescence. Cloud adoption propels productivity growth and should be at the center of investment decisions.
Obsolescence of integrated systems which contain hardware and software is a problem that. While economic motivations are a primary driver, the continuous innovation that comes with the cloudvia regular software updates from the. Forecasting obsolescence risk and product lifecycle with. A stance of the build will break if we have vulnerable components included within is an approach that must exist to prevent software obsolescence. Today there are a growing number of methodologies, databases and tools that address status, forecasting, risk, mitigation and management of electronic parts. The information technology examination handbook infobase concept was developed by the task force on examiner education to provide field examiners in financial institution regulatory agencies with a. Specifically in regards to software and technology, obsolescence is a serious issue that subconsciously motivates every product development cycle.
The paper is concerned with technological and functional obsolescence in the context of common computing applications and from a user persective. Approach for mitigation of obsolescence risk proactive and. The older your operating system or application, the longer the bad guy hackers have. Hardware, requirements, or other software changes to the system obsolete the functionality of the software includes hardware obsolescence precipitated software obsolescence. Singularly, rapid obsolescence of data formats along with their supporting hardware and software can lead to loss of critical information, a process known as digital obsolescence. Not astonishingly, the latter task is much harder, as software distribution is fairly standard nowadays. Mar 28, 2019 with the cloud, the risk of technology obsolescence drops to zero putting the business on a more solidly competitive footing. However, rather than taking a reactive approach to incoming obsolescence risk, predictive planning and proactive approach for mitigation of obsolescence risk.
While economic motivations are a primary driver, the continuous innovation that comes with the cloudvia regular software updates from the provideralso plays a significant role. All the technology we use today will one day be replaced. The risks of endoflife technology for anyone working with hardware and software, obsolescence can be troublesome, annoying, costly, and greatly inhibit overall production. Obsolescence will remain a key risk for many companies in the years to come. If you are researching how to do a technology risk assessment, this story is probably already familiar to you. A security practitioners guide to software obsolescence. This includes the potential for project failures, operational problems and information security incidents. Although there are existing standards to manage obsolescence, such as the jsp886 vol. However, the vps can work better together and promote leading practices, tools, and methods. Security risks and technology obsolescence reduce smart. Calculating the application criticality and business risk.
May 23, 2019 without a strategy that captures the cost, organizations risk forgoing opportunities for growth. A component becomes obsolete when the technology used to. Pdf an analysis of obsolescence risk in it systems researchgate. An example here would be wordstar, a word processor popular in the 1980s which used a closed data. Major drivers of software obsolescence are updates to operating systems osi. Obsolescence is inevitable and affects all systems, especially military systems which are designed for a long product life. The risk of running obsolete software part 2 the risk of running obsolete software part 3 the risk of running obsolete software part 4 once upon a time, it was considered smart and frugal to hang. Perhaps thats why 76 percent of survey respondents intend to. Planned obsolescence also goes by another name being bricked. Having an alternate supply chain and qualified independent distributor already in place to solve and avert disruptions is crucial to reducing much of the risk associated with obsolescence. Therefore, obsolescence is reality in the same way that gravity is a reality. Highlights the paper provides new framework for the obsolescence risk analysis of innovations in retailing. This article highlights developments in virtual application technology that reduce cyber risk and keep legacy software operational. We begin this summary with an overview of the it assets members include in their central obsolescence approaches.
Technology obsolescence alone isnt normally enough to justify a large capital upgrade. Various kinds of risks associated with software project. Figure 1 obsolescence risk assessment process best practice although this process has been defined for managing hardware obsolescence, it also is an excellent basis for developing a process for managing the obsolescence of software. For it managers overseeing data storage and maintenance, the phasing out of technology can pose major headaches. The business risk and cost of technology obsolescence may 23, 2019. This is why we have created a definitive guide to technology risk assessment. Obsolescence risk is the risk that a process, product, or technology used or produced by a company for profit will become obsolete, and thus no.
Software obsolescence complicating the part and technology obsolescence management problem peter sandborn. The risk of running obsolete software part 2 the risk of running obsolete software part 3 the risk of running obsolete software part 4 once upon a time, it was considered smart and frugal to hang onto the things you owned for as long as possible, to keep using them until they were all used up, to squeeze every last drop of utility out of. Obsolescence risk assessment process best capability. Four obsolescence management myths that kill defense. We then explore the approaches members have adopted to anticipate and. This would reduce the profitability of the company. Apr 16, 2016 information technology risk is the potential for technology shortfalls to result in losses. If you are researching how to do a technology risk. The paper is concerned with technological and functional obsolescence in the context. But by identifying and quantifying this risk, production facilities can determine whether to mitigate. Information technology risk is the potential for technology shortfalls to result in losses. But by identifying and quantifying this risk, production facilities can determine whether to mitigate the risk until scheduling andor capital funding becomes available, or to eliminate risk through product migration. Customer is passing the obsolescence risk to the contractors lack of skills and resources to predict and monitor software obsolescence reactive approach often applied to mitigate any software obsolescence issue there is no mandate to use any standards lengthy support contract the main problem in.
Mar 12, 20 operating legacy equipment beyond its obsolescence date will always carry a degree of risk. Many public sector organisations have already taken. For anyone working with hardware and software, obsolescence can be troublesome, annoying, costly, and greatly inhibit overall production. Dependencies should be added to the bill of materials. Planned obsolescence also goes by another name being.
The following it topics are available via this infobase. Approach for mitigation of obsolescence risk proactive. How to reduce automation obsolescence risks without. Assessing obsolescence evaluating and managing the risk of obsolescence across the. Most companies are much better at introducing new technology than retiring it. With the cloud, the risk of technology obsolescence drops to zero putting the business on a more solidly competitive footing. Obsolescence risk in advanced technologies for retailing. Every time a new generation of software is introduced, customers have to carefully weigh the benefits and costs of shifting to the new paradigm. The business risk and cost of technology obsolescence mit. Increased performance is the most commonly cited reason because functionality and performance improvements across all areas of operations is a.
Security risks are the number one danger of older technology. However, rather than taking a reactive approach to incoming obsolescence risk, predictive planning and proactive approach for mitigation of obsolescence risk can minimize the extra expenses and ensure the product availability. A better understanding of the cost of obsolescence can help companies make their cloud investments at the right time. Hardware all of the equipment required to maintain and use digital objects and software all of the offtheshelf and inhouse software programs and packages. Dotfaaarxxxx obsolescence and life cycle management. There will also be more dependencies with software resulting in more complex analysis of risks. And they are failing to capitalize on capabilities available to start solving big problems that threaten their viability. Forecasting original technology obsolescence combine forecasts with expected consolidated inventory and demand effective technology. Many public sector organisations have already taken appropriate steps to address technology obsolescence. Pdf obsolescence risk assessment process best practice. Technology obsolescence and classical mortality factors determine the actual useful life of a smart meter, and they do so simultaneously. Windows xp windows 7 windows 10and updates to hardwarei. The risk that a process, product or technology used or produced by a company for profit will become obsolete, and therefore no longer competitive in the marketplace. Theres another risk that has become more prevalent obsolescence, both planned or engineered, and what i will call natural obsolescence.
A secure development lifecycle must address software obsolescence and provide an organizationwide mandate and expectation for the update of software. Obsolescence management of hardware components can be well understood and implemented however one item often not included in the bill of materials is software components. Supporting data is provided from a number of industrial surveys of commercial offthe. If changes to software cannot be supported then software is obsolete. The problem of technology obsolescence in information intensive businesses software and hardware no longer being supported and replaced by improved and different solutions and a cost. What to do when its time to update legacy technology conclusion. Audit, business continuity planning, development and acquisition, ebanking, fedline, information security, management, operations, outsourcing technology services, retail payment systems, supervision of technology service providers, wholesale payment systems. Key challenges in managing software obsolescence for industrial. Obsolescence risk is the risk that a process, product, or technology used or produced by a company for profit will become obsolete, and thus no longer competitive in the marketplace. Technology related companies are especially prone to obsolescence risk and their revenues can be significantly affected if this occurs. Obsolescence risk assessment is essential to manage obsolescence effectively 1. And the benefits of innovation, in the end, tend to outweigh the economic benefits see section 3. In many cases, a new technology does not totally replace the old technology because the old technology is still useful in certain applications. Digital obsolescence is a situation where a digital resource is no longer readable because of its archaic format.
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