We all make mistakes: Avoiding the sunk cost fallacy in digital transformation and app modernization
Blog post from Upsun
The blog post discusses how the sunk cost fallacy—a cognitive bias where individuals or organizations continue investing in failing projects due to past investments—impacts digital transformation and app modernization efforts, leading to technical debt and missed opportunities. It highlights the dangers of adhering to legacy systems, which can result in operational inefficiencies and hinder innovation, as seen in historical examples like the Concorde project. The piece emphasizes the importance of overcoming this bias to remain competitive, citing how startups often succeed by embracing new technologies without the baggage of past investments. The post also introduces Upsun, a platform that helps businesses avoid legacy pitfalls by offering flexible, cloud-native infrastructure and dynamic resource scaling, enabling organizations to innovate and adapt efficiently.