Legacy Modernizations: A Call to Action
Author: Kris Chennaiah, MBA, PMP
In the age of digital evolution and information overload, there is one constant impediment to management’s pursuit of growth: balancing its consumers’ needs with the information capacity of its IT environment.
Due to management’s challenge with determining ROI based on cost of acquiring new solutions versus maintaining existing legacy systems, management often neglects initiating new modernization projects for fear of risks and failure. However, modernization has the potential to unlock greater value to the organization’s enterprise-wide operations.
The message is clear: management needs to step up and modernize its IT environment in order to penetrate new markets and attract a new generation of consumers.
Management should consider the following initiatives aimed at modernization:
- Align IT solution to business’s model and long-term strategy. Management should proactively address the risk of implementing a solution that fails to meet its underlying business model by spending considerable time in the planning process. Management should ensure the solution is correctly aligned to the business’s model and long-term strategic goals. When management implements a solution without considering impact, then it risks losing revenue and time due to unforeseen systemic issues, and conflict in the workplace.
- Select appropriate vendors to foster scalability and support. Management should partner with vendors who support the business to seek new growth opportunities through leveraging the solution’s scalability. A new IT solution implementation is also a perfect time to consider selecting vendors that offer maintenance support over key operations by identifying issues before they bubble up into serious problems for the business.
Management needs to step up and modernize its IT environment in order to penetrate new markets and attract a new generation of consumers.
- Think about consumer reach through cutting complexity. Modernization not only benefits internal operations, but also serves as a medium to reach new consumers in more responsive ways. For example, many U.S. banking institutions have introduced mobile applications that enable users to perform their banking activities. These IT solutions were well-tailored toward meeting the new consumer preferences. As a result, businesses retain existing consumers while attracting new ones.
- Enabling greater compliance with regulations. Modernization projects can bridge the gap in compliance between a business’s operations and legal regulations in the industry. Not only this, intuitive IT solutions can make it easy for management to demonstrate compliance through inherent features that offer greater data visibility to external entities such as auditors.
When done right, modernizations bring together a community of business stakeholders, consumers, and vendors to achieve growth through selecting the right platform. To that end, a legacy modernization optimizes value to management’s enterprise that pays overall dividends in the areas of consumer retention, growth, and market penetration.