Technology modernization and digital transformation are becoming necessities rather than nice-to-haves.
According to research, businesses that digitally alter both their business strategy and technology see a five-times quicker rate of growth. A recent Infosys survey found that organizations are modernizing their IT environments more frequently to boost revenues, improve customer experiences, and strengthen resilience.
In the next five years, only 10% to 30% of legacy technology will remain, according to our projection.
However, businesses are wary of moving too quickly and disrupting the balance of the market. Many businesses point to the need for business-critical systems to rely on legacy software as well as a staff that is resistant to change. In our analysis, executives are also concerned that they lack the necessary skills to complete activities like restructuring core programmes or smoothly transitioning to the cloud.
For an effective transformation, businesses need to retrain and upskill their employees as well as hire modernization specialists, such as Kilowott. These professionals collaborate with organizations using an agile cadence, releasing updated systems gradually as opposed to all at once. Our research shows that this phased (or “strangler”) modernization strategy considerably lowers the likelihood of system failure.
Upskilling and starting small using modernization
A strategy for skill development can be undertaken internally as an organization. Here, learning is done in manageable chunks, and small steps lead to big business gains. Workshops and daily 30-minute online sessions can be used for DevOps, AWS/Azure Cloud, and microservices training; similar methods can also be used for more specialized skills like database design and application programming interfaces (APIs).
It’s crucial to start small and move slowly at first. Contrary to popular belief, it will shorten timescales and have little effect on corporate systems. Additionally, it allows businesses to collaborate closely with technology teams while giving them time to grasp new technologies.
This is how we enable businesses to successfully make the switch to cloud computing using microservices technology. It begins with a straightforward lift-and-shift from point of sale to cloud infrastructure. Later, though, the business processes are automated and revived applications using Kilowott’s BxT framework.
Additionally, it is critical that practitioners comprehend the complexities of IT project delivery and application prioritization given the numerous dependencies across various systems.
A comprehensive modernization roadmap and strategic vision are required
Being “little and steady” is challenging. When significant changes are imminent, there will always be a feeling of inertia and perhaps outright animosity. A clear plan and road map are essential because of this.
A business case sign off and executive support at the CXO level are also crucial. According to our study, these are the two key components of modernization success. The modernization approach ought to begin with a handful of crucial apps that have substantial business advantages.
By doing an early techno-commercial validation, bringing in the appropriate vendors through a single commercial interface, and accelerating time to market with the appropriate toolkit, a smart partner can de-risk the modernization process.
A gradual, or even “coexistent,” modernization approach should be employed for minimum system downtime, lowering the risk of business disruption, rather to going all in with a big-bang cutover.
Leadership from the business community needs to have a broad vision for incremental change.
In this context, application modernization is not viewed as a purely technological achievement but rather as a transformation of the business itself.
For instance, Experian, a credit reporting agency, sought to switch to cloud computing in order to give its clients access to real-time data. Utilizing product managers who were already enthusiastic about cloud computing, the company was able to overcome early opposition.
Senior leadership began to experience business benefits from the change six months after it began thanks to the high-level vision and accompanying plan, which sped up the adoption of Agile methods.
Initial skepticism was dispelled by the documentation of the transition from state A to state B, and rigorous attention to detail became the initiative’s guiding principle.
When a few internal APIs were successfully implemented as part of Experian’s modernization effort, the company moved on to a full-scale business reinvention. The outcome was the Ascend platform, a new revenue stream that enables clients to make credit choices based on almost real-time data.
Businesses that remain stagnant will be losers in the future. Digital transformation is essential if you want to succeed in the new market. Modernizing applications through upskilling, vision, and a micro-change strategy may seem challenging, but those who are brave enough to try will undoubtedly benefit from coordinated efforts.
How can Kilowott’s BXT framework enable the modernization of legacy systems?
The Business Experience Transformation (BXT) model innovation challenges the status quo – reimagining current functions and processes to transform for the present and for the future.
Articulating the aspirations and expectations of the organization for its engagement with the digital world and of putting the customer at the heart of everything it does.
Customers’ needs and expectations are the overriding consideration in deciding what services to provide, how and through what channels.
Empowering the staff to think and act digitally, to be innovative and to seek ways to transform business processes and services for more engaging customer experiences.
Provides the criteria by which to prioritize digital initiatives so resources and energies are directed and planned appropriately.
The model is intended as a tool to define current and target states of maturity; however, it is not prescriptive as to suggest a best way to achieve the target state. It provides guidance on the development of BXT.
The level to which an organization needs to be mature in each area/dimension is dependent on your own business strategy (focus of the business), business model ( business configuration/design to realize the business strategy), and operating model (capabilities to be executed against the business strategy and model).
The model can be validated at different stages, by assessing what level “As is” against the desired, “To Be” in terms of the given maturity levels across the whole organization or individually across the dimensions/pillars which make up the Organization.
It not only addresses implementing better technologies, but also addresses aligning culture, people, structure throughout the organization. based on strategy, business model, and operating model.
To decide between adopting an evolutionary or a revolutionary approach, you should start with a thorough evaluation of your operations to determine the best path forward. The evaluation process should include assessing the following considerations:
- – Workload – Audit applications and software to determine their business value, criticality and where there are opportunities to modernize. Assess workloads holistically in context of the go-forward business direction.
- – Architecture – Review infrastructure elements, performance and ROI to assess where newer technologies can deliver better outcomes.
- – Financial – Evaluate spend to find budget burdens and ways to optimize resources to support current operations and prepare for what’s next.
- – Uncertainty – Weigh the potential for business interruption, as well as any related implications on business processes and organizational culture, against the goals of your legacy system modernization project. Consider the risks of preserving the legacy system in its current state, such as upkeep for out-of-support systems or those with limited support resources.
- – Execution – Determine whether new skill sets, training, and processes must be taken into account when calculating modernization costs and deadlines.
- – Planning – This is for system security before, during, and after modernization to avoid data loss, outages, and exposure. Organizations should confirm adherence to legislative and industry compliance regulations in the new environment in the security plan.
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