Opinion piece / If leaders do not understand the consequences of their decisions, it will cost the company dearly
Management
Opinion piece
Business leaders who understand software development save time and money, writes Juha Huttunen in a Talouselämä opinion piece. Read the full article below; the original appeared in Talouselämä's Tebatti column in February 2023.
It is easy to get excited about new technologies. However, less attention has been paid to assessments of companies' ability to manage existing technologies in the best possible way. It is therefore time to bring the importance of technological understanding and leadership into the conversation.
The importance of high-quality software will grow significantly in every company in the future, and there is no room to build that growth on a weak foundation. Yet that is what happens. Technology understanding that guarantees quality does not mean a technical support function; it is strategic business management.
Someone who understands software development is one of a company's key competitive advantages and deserves a place in decision-making. Despite this, it is common for software development and its planning to remain support functions in Finnish companies. Even if software is a significant part of the business, it often happens that the overall operation is managed and decisions are made hastily, without understanding the long-term cost and schedule impacts.
A lack of technological understanding in management can and should be addressed.
Does company management understand the impact of its decisions?
If there is no competent expertise in software development in management, or there is no time to internalise it, choices that lead to costly mistakes and surprises are easily made. These situations can lead, for example, to product development slowing down, labour availability issues, rising cost levels, or even to selling something that cannot be delivered on time. Sound familiar?
The key question is whether company management understands the impact of its decisions on the often long-term work of software development.
Short-sighted budget thinking may produce results quickly, but not sustainably. This is precisely where technological understanding brings the necessary – and often also the most financially sustainable – perspective.
Juha Huttunen
Huttunen is the CEO of Rakettitiede.
This opinion piece was published on Talouselämä's Tebatti column in February 2023.
