When you think of “application modernization,” what does it mean to you?

 

It’s a broad concept that can mean different things in different organizations. Some common notions of application modernization include:

All of the above and more are legitimate modernization examples. Every organization’s notion of application modernization is driven, at least in part, by its motivations for modernizing.

 

Why Modernize?

 

In modern business, no one can justify the effort and expense of a modernization project “just because.” As with any IT project, you need a solid business case. For most organizations, these aren’t hard to find. In general, it comes down to increasing revenues, reducing costs, or both.

Consider some statistics:

• In the B2B arena, 86% of buyers say they will pay more for a better customer experience with greater transparency (PWC).
• Over three-quarters of companies say they need better worker productivity (Forbes).
• Two-thirds of business leaders say their organizations need to accelerate their digital transformation efforts or risk losing ground to competitors (Gartner).

In most cases, all of these needs can be addressed by some form of application modernization. Modern B2B e-commerce solutions and electronic data interchange (EDI) interfaces can improve customer experience and automate communications and order status updates. Updated business tools that automate your business processes can increase worker productivity.

And you can be sure that even if you aren’t modernizing, your competitors are.

The need for application modernization is apparent for most businesses, and the expected benefit justifies the cost. But where do you start? And how?

 

Your Modernization Strategy

 

“If you fail to plan,” runs the old adage, “you plan to fail.” Many IT environments, even in small- and medium-sized businesses, are complex, with interdependencies and constraints that must be considered. Choosing an application at random for modernization may have unintended consequences, unplanned disruption, and unexpected costs.

So how do you formulate a solid modernization strategy? Here are some tips:

• Start with the end in mind. What is the company’s vision for the next three to five years? Where will your revenues be, and how do you expect to get there–organic growth, acquisition, expanded product or service offerings?
• A linear expansion in headcount won’t help your profitability, even with solid top-line growth, so you will need to increase worker productivity. The question is: How much? Can you quantify it?
• Optimize your business processes. Is there waste that can be reduced by streamlining inefficient processes or eliminating them altogether? One of the biggest mistakes you can make is automating a process you shouldn’t be doing in the first place.
• Draw a map of your application environment, showing data flows and interdependencies. Which applications are at greatest risk (because of outdated hardware or software, security vulnerabilities, or other reasons)?

Taken together, these steps can help you prioritize applications for which modernization will give you the most bang for the buck.

 

Next Step: Engage a Competent Partner

 

Many companies lack the resources and expertise to plan and execute a modernization program on their own. If this describes your organization, you need a competent, experienced partner on your side.

Solution Machine has extensive experience with modernization projects across a wide spectrum of industries.  Our consultants can help you assess your situation and formulate a strategy that will maximize your return on investment while minimizing disruption. Contact Solution Machine today to learn more.