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Application Modernization


WHAT IS APPLICATION MODERNIZATION, AND WHY DOES IT MATTER?

An overview of application modernization: what it is, why it matters, and how to
get started.



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RAPID DIGITALIZATION, LEGACY APPLICATIONS

The accelerated pace of advancing technology has challenged organizations in
most industries to reevaluate their technology platforms (applications and
infrastructure) and capabilities on a more regular basis than at any other point
in history. Both internal and external customers expect high-quality, high-touch
experiences that are faster and more connected than ever before—and
organizations must keep up to remain competitive in their markets. This is true
for organizations of all sizes and with varying consumer bases. From large
corporations to local government agencies, digital transformation continues to
make an impact.

To not just keep up, but keep ahead of the competition with these changes,
organizations are looking to modernize their enterprise applications. Consider
these enterprise applications in 3 categories: core IT, business process, and
customer support. Core IT encompasses infrastructure specific to IT teams, so
they are the most actively involved with management and oversight. Business
process applications impact an organization’s internal customers, their
employees, and streamline internal operations. The third category, customer
support applications, is a top priority right now, as it covers the
infrastructure to support and grow relationships with client bases.

In many cases, these applications are customized to meet the individual needs of
the business, making them more complex and therefore more cumbersome to
maintain. Especially when operating on a legacy platform with legacy data, the
cost and effort needed to maintain business-critical operations are pushing
organizations to optimize and streamline these workflows. But what is
application modernization, and what are the long-term outcomes? Both of these
questions are explored below.


WHAT IS APPLICATION MODERNIZATION? - EXPLAINED

Application modernization is the process of updating legacy software to better
support current and future business needs. These updates could include adding
new features, migrating to a newer hosting platform, updating or fixing broken
code, and more. In many cases, enterprise application modernization involves
re-platforming, a process by which applications are modified to function in a
cloud-first environment. The goal of enterprise application modernization is to
eliminate the time-consuming, rear-facing work associated with maintaining
legacy technology—allowing organizations to focus more on the future and
innovation.

A key feature of application modernization is that, rather than entirely
replacing existing applications, modernization projects make updates to legacy
systems. Focusing on updating rather than replacing allows organizations to
better identify the core features that must be modernized, rather than starting
from nothing. This gives project teams clearer objectives and often allows for
faster turnaround times.

For example, a state Department of Transportation (DOT) was operating its
oversize/overweight permitting processes on a legacy system built in 1998. The
state needed to implement a solution with new functions and features to improve
the end-user experience. Working alongside a CAI team, the state developed a
modern version of the application using a phased approach. The first phase
updated the external interface that integrated into the legacy backend, and the
second phase modernized the entire legacy backend itself. In doing so, the
agency saved considerable time and money while also greatly improving the
experience for its end users.

While all 3 categories of applications explored above are business-critical,
they are typically modernized at different times based on business priorities
and strategic goals. Changes in regulations and customer expectations have made
customer-related applications a top priority, so they tend to be modernized
first. As security continues to be top of mind, core IT applications are looked
at second to ensure compliance and keep organizations safe. This typically
leaves business process applications to be modernized last, and employees often
feel the impact of outdated, legacy systems on their day-to-day work. Developing
a strategy to not only modernize these applications but also drive value from
the modernized versions, is critical for both internal and external customer
satisfaction.


IMPACT OF ENTERPRISE APPLICATION MODERNIZATION

As shown in the example above, enterprise application modernization can make a
big impact on a business’s bottom line. Modernizing reduces the time needed to
maintain and correct cumbersome legacy systems, allowing teams to focus on the
future and innovate.

Other notable benefits of modernization include:

COST

Legacy systems are often costly to operate and maintain, as they are typically
outdated, inefficient, and require specialized talent for operation. Modernizing
can reduce the number of resources required to maintain the applications, saving
money and freeing up resources for higher-value work.

SPEED

Optimizing applications for cloud environments prioritizes speed and agility,
creating a more seamless experience for both external customers and the teams
maintaining the applications.

SECURITY

As cyber threats continue to grow, legacy applications become increasingly
vulnerable. By leveraging the latest technologies, you can better protect your
business and stay ahead of bad actors.

SCALE

Cloud-native technologies allow organizations to build and run scalable
applications in more dynamic environments. By migrating to the cloud,
organizations can more easily make future updates and scale their platforms to
keep pace with expected growth.

A modernized suite of enterprise applications unlocks the potential for future
innovation, delivers better user experiences, and keeps your organization
secure—all while improving speed and efficiency.


FINDING VALUE IN MODERNIZED APPLICATIONS

Once applications are modernized and migrated to the cloud, many organizations
struggle to achieve a return on investment (ROI) and drive value after the
conclusion of the modernization projects. In many cases, this is a personnel
issue, as existing talent resources do not have the skillsets to manage newer
applications. For example, an organization can upgrade to a new, cloud-based
data suite, but without the proper analysts in place to report on the data in a
meaningful way, there is little value in having the modernized application.
While cloud-based applications allow organizations to shift focus away from
constant upgrades, they must prioritize ensuring the right people are in place
to work alongside the new technology.

Upskilling existing employees and augmenting application teams with individuals
trained to manage the new applications is an effective strategy to address this
challenge. With the right resources in place and the latest technology,
organizations can more effectively drive value following their enterprise
modernization projects.

Another important consideration for achieving value in the application
modernization process is visibility into how applications work together as an
ecosystem. The latest technology only goes so far if it operates in silos.
Streamlining applications and integrating processes can help organizations move
more quickly and focus on productive activities rather than being bogged down by
manual, disjointed processes.

To ensure that your applications are working together and optimizing operations,
consider conducting an audit of your existing IT environment and identifying
areas for process improvement and consolidation. As part of this process, it is
important to review your organization’s current technical debt strategy, as well
as any additional deficits that may have been accumulated throughout the
modernization projects. Knowing this information will help you to make
actionable plans to keep all debt at a manageable level and map out an approach
to pay it off in phases.

As with any large-scale enterprise project, it is important to apply
organizational change management (OCM) best practices and engage stakeholders
early and often. Understanding communication frequency, project update
timelines, issue resolution processes, and more are essential to keeping these
projects on track and ensuring they provide the most value to your organization.
Having experienced program and project managers implement and enforce these
practices makes the process much smoother. If this puts too much strain on
internal teams, it is important to seek out a trusted partner for guidance.


MODERNIZING ENTERPRISE APPLICATIONS FOR THE FUTURE

While the benefits of application modernization are clear, getting started and
truly driving value can be cumbersome—especially considering financial
constraints and teams that are already stretched thin. Before beginning any
modernization project, it’s important to understand your technology
environment—what is working, what isn’t, and what makes sense to modernize.
Consider building an application modernization roadmap to help guide future
decisions and planning. Once a roadmap is in place, plan projects in phases to
keep teams on track and delays to a minimum. Taking an iterative approach rather
than trying to modernize all applications and features at one time allows for
continued process improvement along the way and makes it easier to identify the
cause of issues that may arise. And once applications are modernized, prioritize
leveraging the right talent and building an integrated suite to drive maximum
value and achieve the most ROI. With these best practices in mind, your
organization will be better prepared to modernize for the future in a scalable,
sustainable way.

CAI has more than 40 years of digital transformation experience, working
alongside the public and private sectors to modernize applications and
streamline operations. We’ve partnered with enterprises of all sizes to help
them drive value and realize their full potential.

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