The recent IT breakdown at Capital Credit Union serves as a cautionary tale for businesses planning a tech migration, says Target Integration’s CEO Rohit Thakral.
In February, Dublin’s Capital Credit Union (CCU) suffered an IT outage which left 50,000 people unable to access their online accounts for several days. It not only inconvenienced members but also exposed the credit union to significant financial and reputational risks. The incident is a stark reminder of the multifaceted impacts of poor tech migration.
The CCU outage is a cautionary tale for all organisations planning a tech migration. However, knowing the practical steps needed to avoid mistakes is always complex. Each business has different considerations, but there are specific actions that all organisations can take to make the digital transformation journey smoother.
Strategic planning
The CCU outage occurred during a planned migration to a new banking system. Unfortunately, unforeseen technical difficulties arose, forcing the credit union to revert to its original banking system.
The incident underscores the criticalness of extensively testing new systems before a full-scale launch. It also highlights the value of a clear roadmap and milestones when transitioning to new technology platforms.
To implement strategic planning effectively, you need a comprehensive understanding of the scope of migration. You also need to set timelines and lay out the roles of key stakeholders. A well-defined plan helps to anticipate potential issues and ensure a smooth transition.
The plan should be flexible enough to accommodate changes. It should also be regularly updated to reflect the project’s current state. Collaborative project management tools, like shared spreadsheets and online Gantt charts, help you track progress and keep everyone aligned throughout.
Risk management
The financial implications of such an outage are significant. The Central Bank is currently probing the incident, and there are fears it will fine CCU. The potential financial penalty, coupled with the operational costs of rectifying issues and any lost revenue during such an outage, can be substantial.
Risk management planning is an absolute necessity. It involves identifying potential pitfalls and having mitigation strategies ready before they materialise. Potential threats include technical risks, such as data loss or system downtime, financial risks and operational risks.
After you’ve identified these risks, you must develop contingency plans. This means outlining the necessary actions in the event of that risk materialising. Contingency plans must include clear roles and responsibilities, communication plans and recovery procedures.
It’s crucial that risk assessments are reviewed and updated regularly throughout the project. It’s not a case of doing it once and ticking it off – it’s an ongoing and evolving process.
Communication and support
Reputational damage can be even more detrimental than adverse financial implications in the long run. We’re in an era that expects digital services to be reliable and always available. Such incidents can erode trust and confidence.
CCU’s CEO, Pat Byrne, acknowledged this in his statement, apologising for the issues that impacted its services. It underscores the role of transparent communication in managing stakeholder expectations and minimising disruptions throughout the migration process.
Training users in advance and providing ongoing support to address issues and respond to crises is central to any tech migration. Comprehensive support packages include multiple elements, including hands-on training sessions, user manuals, online resources and specialist on-demand support.
Learning from mistakes
Mistakes happen. It’s how you respond to them that defines your success. Using setbacks as learning opportunities strengthens your digital transformation strategy. In CCU’s case, they reverted to their original banking system, demonstrating a level of preparedness.
Post-migration reviews provide valuable insights for future projects. The CCU incident, for instance, revealed areas for improvement, such as the need for more robust contingency plans and better communication with members.
You should always give evaluation processes adequate attention and forethought. Documenting everything throughout the project – good and bad – will help when it comes to appraising performance.
You also need to make sure everyone’s on the same page. Encourage transparency by highlighting that the review isn’t looking to assign blame. Instead, emphasise that lessons learned are integral to best practice development.
Choosing the right technology partner, not vendor
The choice of technology partner significantly impacts the success of digital migration projects. However, choosing a provider who has the necessary experience and can provide adequate support takes time and effort. At its most basic, you want to look for a trusted partner who will work alongside you rather than a mere vendor.
A robust partner should have the necessary expertise, provide a reliable and efficient system, and offer comprehensive support during the process to anticipate and mitigate potential issues.
Looking for a partner with a proven track record in similar migrations is an excellent place to start. Checking references and conducting due diligence before deciding will help eliminate those who can’t or won’t deliver.
The example of the CCU outage underscores the importance of strategic planning, risk management, customer communication, support and the right technology partner. As we increasingly rely on digital services, ensuring their reliability and resilience is not just an IT concern but a business imperative.
Rohit Thakral is CEO of Target Integration, a Dublin-based digital transformation company. He has more than two decades of experience across various industries, from manufacturing to finance and retail to distribution.
Find out how emerging tech trends are transforming tomorrow with our new podcast, Future Human: The Series. Listen now on Spotify, on Apple or wherever you get your podcasts.
