Strategic app modernization
Digital transformation is essential in today’s competitive marketplace, but to be successful it needs a guiding strategy
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Overview

Application modernization should be a key part of that strategy, and an experienced partner can guide you through the four steps to success. App modernization is always going to be highly customized work, but it’s work worth taking seriously — the benefits are enormous. A strategic approach means you can see the whole picture and build value in phases.

Strategy
Digital transformation is essential, but it requires a strategy Whether you want to control costs, connect to the cloud or become more agile, digital transformation is critical. You need to add value by changing your application landscape. True transformation creates new intelligent workflows, supporting new efficiencies and ways of working. But many organizations fail in their transformation journeys. To succeed, they need to embrace strategic app modernization.

Takeaway

Digital transformation needs a guiding strategy, and application modernization should be a key part of that strategy.

86%

fail at transformation projects.

73%

say results aren’t truly transformational.

Continuity

Modernization is central to your transformation story — and there’s a clear path to achieving it.

Modernization is more than a generic term for improvement. It means assessing and optimizing your application mix toward measurable business outcomes, along with adapting your organization’s mindsets and skill sets to take advantage of new technology. If you approach modernization thoughtfully, you can take four strategic steps to make it a reality and reap the benefits.

Takeaway

By putting the right processes and infrastructure in place, modernization allows you to assess and optimize your application mix toward measurable business outcomes.

35%

infrastructure savings.¹

50%

lower app maintenance and running costs.¹

74%

lower costs on hardware, software and staff.¹

10%

improved app efficiency.¹

14%

boost in annual revenue.¹

Vision

You need to understand where you are to see where you’re headed.

You can’t modernize strategically without knowing why you need to change and what your current situation is. Only by gaining a rational and comprehensive view of your current app landscape can you start to set priorities for what needs to happen next. You’ll need to translate desired areas of improvement into specific business goals and related KPIs.

Takeaway

The right strategy will translate your general desire for improvement into specific, measurable business goals.

80%

say a need exists to quickly transform to stay competitive.²

50%

app effort saved by automated offering.³

14%

revenue increase due to modernization efforts.¹

Outcomes
Your business can’t stop while you modernize your apps

The right modernization strategy is different for every organization, but one reality remains consistent: Business can’t just be put on hold while you make changes. You need to outline a roadmap for what will change, in what order, to add value over time. Modernization done properly will always be an exercise in maintaining continuity amid change.

Takeaway

A modernization roadmap should add value through multiple overlapping modernization journeys, each one adding value without disrupting operations.

Culture
Your culture will need to adapt to the opportunities that modernization offers Digital transformation isn’t just about embracing new technologies. People, processes and governance are equally essential. Evolved skills and operating models will drive and sustain change company-wide. Your people will need support to acclimate to environments that are more agile than they’ve known — and where more opportunity exists.

Takeaway

Incorporate skills assessment and training to make sure your workforce is adapted to the new workflows and resources that modernization brings.


60%

fewer apps.⁴

90%

smaller data footprint.

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Learn how strategic application modernization drives digital transformation.

Footnotes

¹ Importance and Benefits of Application Modernization, Veritis, 2020.
² Application modernization on the mainframe, IBM Institute for Business Value, July 2021.
³ Based on the experience of IBM Consulting professionals.
⁴ Vodafone Germany: Accelerating innovation with SAP S/4 HANA to enable data-driven decision making, IBM, 2019.