This guide outlines what application modernization entails, and how to implement it in your business.
Does your computer use the same software as it did a decade ago? Of course not. Just like technology evolves over time, businesses also change. Think about it: is your business the same as it was several years ago?
In today’s digitalized world, every business is a tech business. That’s why businesses of all industries are looking to modernize their tech habits. Data technologies, mobile, and cloud are forcing businesses to adapt quickly, but this is only the beginning. New technologies in the form of IoT (Internet of Things), blockchain, machine learning, and artificial intelligence are about to cause further disruption.
For companies that want to stay on top of digital innovation, aging infrastructure, and the conventional ways of developing applications can be major growth inhibitors. However, some of the world’s top companies, like Equinix and Goldman Sachs, have already successfully improved their business implementing application modernization. So if you want to get started on your application modernization journey, take a look at this beginner’s guide to Application Modernization at Prolifics to give you a more detailed insight into the matter.
What’s application modernization?
Application modernization is a process of adding value to an already existing legacy system by transforming it into modern infrastructure. Research shows that modernizing legacy software can help businesses reduce their total cost of operations by about 14% and increase their revenue by nearly 15%.
But despite these findings, many companies are still holding onto their old legacy systems. The problem is, over time, these systems begin showing critical issues, bugs, and errors, which could have a negative impact on your revenue. For that reason, if they want to stay competitive, businesses need to replace aging systems and digitally transform their processes.
3 Reasons Your Business Needs Application Modernization
Current applications could use modernization of several points:
1. Old legacy infrastructure
In many cases, legacy infrastructure is very old. Of course, replacing a system that’s been in the core of your business isn’t easy, so modernization seems like a logical alternative.
In addition, some companies have diverse infrastructures, with processes running on custom-built apps, an ISV, or on mainframes. Applications can also be hosted on-premises or in a cloud, which makes things even more challenging.
2. Legacy applications
There’s a great number of LOB systems designed for order processing, budgeting, invoices, etc. These are crucial business functions but they can also be extremely complicated. They often require employees to use multiple systems in order to get work done, which results in reduced productivity.
3. Not enough agility
Old infrastructure and legacy applications can seriously compromise a company’s agility. Surveys have shown that workers spend nearly 30% on repetitive tasks such as migrating data or conducting approvals across different systems. Moreover, most companies (about 80%) dedicate their budgets to running and maintaining current processes, which leaves almost nothing for innovation.
7 Benefits of application modernization
So, why exactly do organizations need application modernization? There’s a number of reasons, from increased agility to improved team productivity. Here’s the full list.
1. Improved security
One of the main reasons why businesses should consider modernizing their legacy systems is security. Studies say that aged systems are particularly vulnerable to data breaches and malware attacks. In other words, relying on systems that were secure 5-10 years ago is not a good idea. Modernization will provide improved protection and security for your business transactions.
2. Better app agility
The latest technology updates help automate, streamline, and simplify the entire process flow, thus enabling legacy applications to run with more agility.
3. Improved compliance to process regulations
Not complying to process regulations could cost your company thousands of dollars. In addition, updating and managing reports and logs can be a real problem with paper-based legacy applications. Modernized systems enable you to complete these tasks no matter where you are.
Features like increased security, real-time data entry, and improved project tracking contribute to easier compliance, lower risk, and improved customer support.
4. Better UX
Modern technologies make it easier for users to interact with the app from back-end or front-end, allowing them to perform their operations effectively.
5. Better customer service
Legacy systems make it difficult for companies to develop new services or features. With modern technology, it’s easier to make plans and launch new products and features in shorter periods of time.
Modernized applications allow organizations to serve their vendors and customers more efficiently, thus improving their chances of getting more new business. Modern technologies also allow businesses to connect with their customers in real-time, providing more value to their offerings and promoting sales.
6. Improved productivity
One of the most important benefits of application modernization is improving team productivity. Studies have shown that modernizing applications could boost your development team’s productivity by 40%. Why is it so? Because developers get access to more sophisticated technology and better tools, which enhances their efficiency.
7. Cost reduction
And last but not the least, application modernization could help you reduce operational costs. In fact, studies have shown that organizations with modernized legacy systems are five times more likely to see substantial cost reductions.
First, cloud-based data solutions offer more manageable and scalable services at affordable rates, so moving to cloud-based solutions allows you to reduce the cost associated with data center utilities.
Second, most companies spend over 50% of their total IT budget on maintaining the old legacy systems. Modern systems allow businesses to architect the legacy code anew using open-source programming languages. And the best part? You don’t have to hire professional developers.
Final thoughts
Old legacy applications are inhibiting your company’s progress, so putting off application modernization will not only waste your time but also your money. With application modernization, you can now give your existing systems a new business value. Of course, there’s no one universal approach and you’ll need to choose the one that fits your company’s goals and needs.
