Digital transformation is happening all around us. No business wants to be left behind in providing the best environment to satisfy their customers. It's a fundamental change that not only has to be made to your attitude about your company, the way you function and old operating models.
It's crucial to implement the best and most cutting-edge technology to your business. You don't want to stay a few years back with your software. That's a part of digital transformation called software modernisation. It can bring immense benefits when it comes to growth of your company and cost reductions in the long term.
Two approaches
Almost all of the IT decision makers admit that one approach is not enough. There is a need for two distinct perspectives for software modernisation. The first one is the constant upgrade of core systems. It allows for having a base you can build further developments upon.
And secondly, the exploratory approach. To clarify, there should be a portion of the resources dedicated to implementing new technologies and exploring new innovations. Companies have to look into the future and study new approaches or generations of systems, and see what fits them best. Such dual approach is said to be critical by 9 in 10 senior IT specialists.
Why is it important to implement software modernisation in digital transformation?
Software modernisation is a crucial part of digital transformation. Without it, your company won't be as efficient and profitable. The need for new software is there, as most of various company department members express a demand for new technology.
The costs go down and the revenue goes up
Senior IT specialists believe that the revenue can go up by 14% on average by making the right decisions in software modernisation. Large organizations benefit by 1 billion USD on average. That's an immense profit. While the revenue goes up, the costs are cut by a significant margin of 13% as per the same group of specialists.
If you don't modernise - you stay behind
Almost 9 out of 10 IT specialists agree that software modernisation is key to keep your business afloat. Organisations can't afford to be left behind in terms of their software and technology. The expectations keep growing, and new technologies emerge. Lingering with the modernisation can cost the organisations significant amounts of money. Not meeting the expectations is the main factor here. 80% of IT specialists think that not making sufficient changes to the non-modernised software will bring a negative impact on the business.
The software you have is not enough
Almost two thirds of the IT specialists think that today's systems are not enough to meet the expectations. Therefore, we need innovation and new, more efficient systems. 67% of organisations operate on conventional and legacy software. With legacy software you can go for software refactoring and make fixes to your environment. It's crucial for your company to thrive in the ever-changing, hugely competitive and constantly evolving world.
The benefits it brings
It's widely agreed that talking only about the benefits the IT department can see doesn't do justice to software modernisation. IT decision makers think that software modernisation will bring the largest benefits for business productivity. Business innovation and cuts of operating costs come next. For the IT department, the IT staff productivity aspect will see the largest benefit, along with IT costs reduction.
Here's a video on doing digital transformation right.
Not all organisations are implementing it, though
Businesses can't see that modernising their software can reach beyond their IT departments and bring great results for the whole business. The executives are also afraid of the pitfalls that come with migrating to new software. Concerns for security and operational issues emerge among leaders. IT specialists report that another issue they have is to demonstrate the benefits software modernisation will bring and do them justice. A third of executives don't have a clear idea of PaaS's (Platform as a Service) value.
For another few years, such hybrid approach is probably here to stay. Not all the firms have the resources to switch to new technologies. Even when presented with clear benefits and examples from real-life companies that have succeeded with modernisation, they still choose to operate on the outdated software.
