How Businesses Can Thrive in a Rapidly Changing World Through Application Modernization
The business landscape is evolving at an unprecedented pace. A stark reminder of this is the fact that less than 10% of the FTSE 500 companies from fifty years ago are still in operation today. Even more striking, less than half of the companies founded since the year 2000 have managed to survive. This rapid transformation is forcing businesses to adapt or risk becoming obsolete.
Executives across industries are acutely aware of the need to keep up with these changes. The key to survival and success lies in two critical areas: data and applications. Without a modern foundation for these elements, any attempt at transformation is likely to fail. This is why modernizing applications has become a top priority for businesses, especially traditional ones, as they strive to remain competitive in today’s fast-paced world.
The Need for Speed and Agility
To stay ahead, companies must become more agile, innovative, and cost-effective while ensuring robust IT security. Modernizing applications is central to achieving these goals. Traditional businesses, in particular, face mounting pressure to keep up with tech-savvy competitors that operate seamlessly in the cloud. These cloud-native companies have a significant advantage in terms of creativity and agility, making it imperative for others to modernize their systems to level the playing field.
Another pressing issue is the need to preserve the “intellectual legacy” of an aging but mobile workforce. As experienced employees retire, businesses must find ways to capture and utilize their knowledge in the new digital era.
How to Approach Application Modernization
So, how can businesses effectively modernize their applications? The process begins with a thorough understanding of the current state of an organization’s applications and data. This requires a comprehensive baseline analysis to identify areas that need improvement.
Aligning modernization efforts with the company’s business objectives and corporate vision is equally important. By prioritizing and implementing steps that directly contribute to specific goals, businesses can ensure a more targeted and effective transformation.
A Real-World Example: Lessons from a UK Bank
The challenges of modernization are well illustrated by the case of a high-street bank in the UK. At one point, the bank had only three employees left to maintain its IT system and manage core processes. This lack of resources led to a significant decline in customer service, causing the bank’s ranking to plummet. Simply moving the bank’s applications to the cloud would not have been enough to address the issue. Instead, a combination of stabilization and extensive modernization was required to improve its business outcomes.
Barriers to Modernization
Despite the clear benefits, many companies struggle to modernize their applications. One major obstacle is the complexity of the heterogeneous systems that have been developed over the years. These systems often consist of a patchwork of outdated technologies that are difficult to integrate and update.
Another significant challenge is the shortage of skilled workers who can navigate this complexity. The demand for expertise in modernizing legacy systems far exceeds the supply, making it difficult for businesses to find the talent they need.
Good News: Tools and Technologies to the Rescue
Fortunately, modernizing applications has become a well-established discipline, and businesses can now leverage a wealth of experience and tools to streamline the process. For example, IBM has spent the last 25 years developing hundreds of tools and approaches, known as “journeys,” to facilitate application modernization. These resources are now available on the IBM Consulting Cloud Accelerator platform, which provides specific execution and transformation steps to accelerate the process. In fact, this platform can reduce planning time by approximately 40%.
Artificial intelligence (AI) is another game-changer in the modernization process. IBM’s AI-based solutions, such as the IBM Watson Code Assistant for Z, help developers transition from COBOL to Java code quickly and efficiently. This not only simplifies their work but also reduces the time it takes to bring new applications to market. The Watson Code Assistant for Z is just the first in a series of AI technologies designed to accelerate modernization efforts in the future.
The Power of Partnerships
Collaboration is another critical factor in successful application modernization. Many modernization projects involve creating a seamless integration between secure on-premises systems and the capabilities of hyperscalers in the hybrid cloud. To make this process easier, IBM has partnered with Amazon Web Services (AWS). Together, they offer a wide range of joint services, including application and database migration, app overhauls, modern application development, and DevOps on AWS.
This partnership combines the industrial expertise and technical capabilities of both companies, enabling businesses to modernize their applications strategically and efficiently.
The Collaborative Approach
IBM’s garage method exemplifies the importance of collaboration in modernization efforts. This approach involves IBM consultants working closely with their customers to develop pilot projects, use cases, and standards using design thinking. By combining templates and architectural guidelines, this collaborative method ensures a smooth and successful modernization process from start to finish.
Conclusion
In today’s rapidly changing business environment, application modernization is no longer optional—it’s a necessity. By leveraging modern tools, technologies, and collaborative approaches, businesses can overcome the challenges of legacy systems and position themselves for long-term success. Whether it’s through AI-powered solutions, strategic partnerships, or innovative methodologies, the path to modernization is clearer than ever. The question is: will your business take the leap?
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