Undoubtedly, speedy technology plays a key role in any organization’s success. But with efficient technologies, management is equally crucial to streamline technology.
With that said, there are two primary approaches to technology management: centralized and distributed. Each approach offers its own unique benefits and challenges.
Of course, it’s important to understand the ins and outs of both approaches. Knowing how to implement them effectively helps your association optimize its IT operations to drive growth.
Let’s get into it.
[Related: Creating an Effective Technology Strategy or How To Buy Tech Without Regrets]
What Is Centralized Technology Management?
“Centralized technology management” refers to a structure where you consolidate your IT resources, decision-making and processes within a single, central entity.
This system typically oversees all technological aspects across your organization, from infrastructure and applications to security and support. This results in a more streamlined information flow across your association.
It’s important to note that centralized data management and centralized technology management are related but different. And the same goes for distributed data management versus distributed technology management.
Centralized data management is a system that manages complex data interconnections and consolidates data from multiple sources into a single entity (such as a data warehouse). And this management structure is quite popular. A Gartner survey reported 78% of organizations use a centralized data management approach.
Benefits of Centralized Technology Management
What’s more, 64% of organizations reported greater efficiencies, and 57% reported business growth when using a centralized technology manager.
Additional benefits include the following:
- Uniformity and standardization. Centralized technology management allows your organization to more consistently implement policies, procedures and technologies, leading to easier maintenance and less redundancy.
- Lower costs. Consolidating resources is always a plus — especially when budgets are tight. Your organization can look forward to reducing the total cost of technology procurement and maintenance. Plus, better pricing and terms can follow any centralized purchasing and vendor negotiations.
- Risk reduction. With a centralized approach, your association can implement uniform security protocols and monitor all your systems from a single point. This centralized oversight helps you quickly identify and mitigate security threats.
- Simplified management. A single point of control simplifies IT management. You can more easily allocate resources, manage updates and ensure compliance with regulations and standards.
Drawbacks of Centralized Technology Management
So, what’s the catch? What challenges might you face with centralized management to streamline technology?
- Single point of failure. Centralized systems often become a bottleneck for data. If your central system goes down, it can affect your entire organization.
- Reduced flexibility. Centralized management isn’t always as responsive to the unique needs of your association’s individual departments. This may lead to slower decision-making for which technology solutions to adopt.
- Potential for overburdened IT staff. If you have a main IT team, they may become overwhelmed with the demands of managing the entire organization’s technology management project needs. In turn, you may see workflow delays.
[Related: 9 Tips and Tools for Successful Technology-Focused Project Management Within Associations]
What Is Distributed Technology Management?
“Distributed technology management” refers to a structure where you decentralize IT resources and responsibilities across your association’s departments, locations and units.
In simpler terms, each unit has a degree of autonomy when managing its own technology needs.
Benefits of Distributed Technology Management
This approach has distinct benefits:
- Increased flexibility. Technology distribution allows your individual departments to tailor tech solutions to their specific needs, leading to more responsive and agile operations.
- Resilience. With resources and responsibilities spread out, your association is less vulnerable to a single point of failure — a notable challenge for centralized management systems. If one system goes down, it’s less likely to affect your entire organization.
- Empowered departments. Departments benefit from making quicker decisions and implementing solutions that best meet their unique pain points. This empowerment leads to faster-working and more innovative teams.
- Scalability. As your organization grows, a distributed approach allows departments to manage their technology needs without overwhelming one central IT department.
Drawbacks of Distributed Technology Management
Now, what are the approach’s challenges?
- Consistency and standardization. With multiple units managing their own technology, it’s often challenging to maintain uniform standards and protocols. This leads to potential compatibility issues and inefficiencies.
- Higher costs. Technology distribution may result in mistakenly duplicating efforts and resources because each team or department operates independently and manages its own technology. This lack of economies of scale can lead to higher overall operational costs.
- Security risks. Decentralized management makes it harder to enforce consistent security measures, and thus increases vulnerability risks across your organization.
- Complex coordination. Coordinating technology initiatives across multiple teams is complex and time-consuming. It may lead to fragmented efforts and misalignment with your organizational goals.
[Related: Maximizing Technology Purchases: All-in-One vs. Best-in-Class Solutions]
Finding the Right Balance to Streamline Technology
Many associations find that a hybrid approach — combining centralized and distributed technology management elements — is ideal because it offers the best of both worlds.
Consider centralizing a few core functions, such as security, compliance and strategic planning. Then, allow individual departments to manage their specific technology needs. As a result, your organization has a better chance at balancing standardization and work flexibility.
However, you should keep a close eye on a few key areas if you choose a hybrid approach for your organizational technology management projects.
Key Considerations to Streamline Technology With a Hybrid Approach
Adapting to and managing new technologies may require a more dynamic approach:
- Clear governance framework. Establish a governance framework that clearly defines the roles and responsibilities of your central IT department and individual departments. This prevents work from falling behind.
- Effective communication. Ensure robust communication channels — such as Microsoft Teams or Slack — between central and distributed tech areas to align efforts and maintain consistency across your association.
- Integrated tools and platforms. Use integrated tools and platforms to streamline operations and improve collaboration between both central and distributed systems.
- Regular assessments. Regularly review the effectiveness of your hybrid approach. This effort helps identify areas that need improvement and ensures your organization remains responsive to changing needs.
[Related: What To Consider When Adapting to New Technology]
Contact Dennison & Associates To Help You Manage and Streamline Technology at Your Association
As you can see, centralized and distributed technological management approaches have their own advantages and challenges. To decide which approach is best for your association, consider your unique needs and goals.
But you don’t have to figure it out alone — Dennison & Associates is eager to help. We can assess your organization to determine the most appropriate path forward for success.
Ready to streamline technologies at your association? Contact us today to start working on a management plan.
Featured image via Unsplash
