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Modernization PART 1 – the very foundation of a proactive trusted advisor approach

AMM Blog / 29. September 2011

What is modernization?

Modernization aligns IT with business

Modernization is the continuous evolution of an organization’s application infrastructure. This evolution enables companies to handle volatile requirements. The goal is to align modern technologies, skill sets, and capabilities – to replace legacy environments – with ever changing business strategies.

A typical example would be application consolidation: Many IT landscapes possess redundant applications that simply carry out nearly the same functionality – besides, they use extra resources and maintenance costs. By identifying these applications, it is possible to formulate a common denominator among those applications; this common denominator can then be used to make out of several applications only one application. One application reduces resources and costs, is less prone to failure, and is easy to manage.  

Why are many application projects bumpy?

Efficiency – from individual to standard

The application jungle grows profusely; therefore,  involved costs and efforts are on the increase. Today, the maintenance of applications burns as much money as the development of new software (both amount to 54% of the overall IT-budget).

Bottom line: Here is untapped potential.

Many companies possess legacy systems (never change a running system), especially in the banking and insurance sector (they have the highest number of transactions both historical and current ones). This is why 60% of all IT decision makers strongly believe that they have a plethoraof applications than their business model requires; according to the latest research, up to 50% of all applications are superfluous; as a matter of fact, one should get rid of the non-value-adding-applications. Yet, only very few companies pursue this because developers who are in the know are extremely rare, the respective costs are perceived higher than the benefits, management have other topics on their agenda, and different business units have different requirements making standardization nearly impossible.

However, there is an antidote: Simply abstain from individual approaches towards standards. It offers the opportunity to take full advantage of an application’s landscape potential, thus, it brings about higher efficiency by standardizing individual scenarios (from individual to standard).

 Why is modernization so important?

Standardization remains imperative for the following reasons:
(1) Transparency, (2) cost reduction, (3) and aligning IT with business  

One of the biggest challenges IT faces today is keeping up with ever changing business strategies. Therefore, I would like to shed some light on some of the most important reasons/drivers in terms of modernization:

(1) Transparency

Eliminate unsupported hardware and software; increase transparency in the complex legacy environment via standardization; transparency facilitates maintenance and paves the way for cost reduction.

(2) Cost reduction 40-60%

Use modern and/or open source technologies; thus reducing operational and maintenance cost. This can be also be achieved by migration, consolidation, and harmonization of application landscapes.

(3) Align IT with business processes

Facilitate the flexibility and integration of other applications,  allowing IT to be more easily aligned with business processes.  As a result, faster time to market and faster ROI can be realized.

What are the challenges of modernization?

“Jury-Rigged Legacy Systems”

To understand complex Interdependencies between different systems.

  • To understand the incomplete and/or poor documentation. Filling the missing gaps to reflect  the existing business process and application landscape.
  • Hard to get required core information (system and architecture) due to missing knowledge experts and knowledge management (attrition rate).
  • Poor code quality due to inconsistent naming conventions, tightly coupled code and the like.
  • May be monolithic and poorly layered as opposed to modern distributed as well as clearly layered architecture.
  • Often incompatible with interfacing systems or difficult to integrate.

What happens if T-Systems and modernization clash?

T-Systems’ value proposition

Modernization embarks not only on consolidation, harmonization, and migration, but also when it comes to predefined best practice scenarios.   These scenarios are designed to further take full advantage of existing application settings. These scenarios include:

  • Cloud Readiness Services (Fit4DCS)
  • Mobile Enterprise Services (Mobility Services)
  • Modernize as you Migrate (Languages, Databases, Platforms)
  • Application Re-engineering (SOA, Standardization, Open source, GUI, Performance)
  • Monitoring Solutions with behavioral learning and predictive analytics

When it comes to modernization, it is essential to understand current legacy systems: Taking into account existing complex dependencies among systems is key, so that the right approach can be selected. Only then aligning IT with the changing business strategy and getting faster ROI is palpable. Moreover, modernization brings additional cost savings to the table – on top of application management – and can therefore be financed with the help of the cost savings through application management.

 

 

 

 

Would you like to know more about MODERNIZATION? Stick to the AMM Blog because PART 2 is in progress.

 

 

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