Continuous Modernisation: A Better Way to Digitally Transform Your Organisation
We have a macro problem with IT and how organisations develop, maintain, and modernise software systems.
Software is becoming increasingly complex and costly to build, support, and upgrade. As a result, IT backlogs are getting longer, and projects continue to fail with alarming regularity. According to the Project Management Institute (PMI), approximately 11.4% of all investment in projects is wasted due to poor performance.
These issues are exacerbated by an ever-growing demand for software. This demand is fuelled by the ongoing urgency for digital transformation and continuous modernisation across all industries and markets.
The Digital Transformation Age
The distinction between the ‘economy’ and the ‘digital economy’ has become meaningless. According to Forrester, digital innovation is now a necessity rather than a differentiator, and organisations will either be digital leaders or laggards. In 2024, having a strong digital strategy is imperative for survival in an increasingly competitive marketplace.
Digitisation has expanded rapidly, particularly in startups and global conglomerates. It’s no longer enough just to participate in the digital economy; continuous modernisation is essential to remain competitive.
Digital Transformation is an Ongoing Process
Digital transformation begins with digitisation—the process of converting physical information into digital formats (think pen and paper vs. a word processor). However, true digital transformation involves digitalisation, which means using digital technologies to enhance business processes, efficiency, and service delivery.
Here’s the catch: there’s no such thing as a ‘complete’ digital transformation. Modernisation is a continuous journey. Today’s digitally advanced organisations can become tomorrow’s laggards if they fail to adapt and evolve. Digital initiatives require constant iteration and flexibility.
Software as Business Modernisation 101
Organisations need to pivot from thinking in terms of projects to thinking in terms of products. Traditional project life-cycles are finite, with fixed resources and deadlines. In contrast, product life-cycles are continuous. They involve ongoing assessment, prioritisation, and iterative improvement.
A 2023 report from IDC indicates that up to 75% of IT budgets are consumed by maintaining existing software products. The remaining portion is often stretched thin between upgrades, migrations, and new projects. This focus on maintenance underscores the need for a continuous product mindset rather than a project mindset.
How to Modernise Software Efficiently
Software products can make or break digital modernisation efforts. Organisations must evaluate all potential approaches: a complete rewrite, a migration, or strategic updates.
1. Rewrite: Rewriting outdated software is often necessary for continuous modernisation. While starting fresh can propel an organisation forward, the time and resources required are significant. Organisations often underestimate the cost and overestimate the longevity of new applications. Regular rewrites can be part of a modernisation strategy, especially when cloud compatibility is a concern.
2. Migration: Migrating legacy systems to the cloud can conserve resources and extend software longevity. Migration alone has diminishing returns. Once on the cloud, further migration offers limited benefits. Therefore, while migration should be part of a continuous modernisation strategy, it must be complemented with other modernisation efforts.
3. Strategic Updates: This approach involves augmenting software with targeted, incremental updates. Microservices
architecture in cloud environments can optimise these updates. By focusing on specific components within a software ecosystem, organisations
can modernise with minimal disruption to operations. However, this method is vulnerable to technical debt, which can hamper augmentation
efforts.
Security and Compliance in Modernisation
In 2024, cybersecurity and data privacy are more critical than ever. With stricter regulations like the General Data Protection Regulation (GDPR) and Australia’s Privacy Act, organisations need to incorporate security and compliance into their modernisation strategies. Failing to do so can lead to significant financial and reputational damage.
Continuous Modernisation Power Tips
1. Rewrite software that is too outdated to function effectively in cloud environments and migrate the rest.
2. Adopt a microservices architecture to facilitate strategic updates.
3. Prioritise security and compliance as integral components of your modernisation strategy.
4. When feasible, separate stacks connected via APIs can improve software flexibility and longevity.
Ultimately, the pathway to successful digital transformation lies in adopting a continuous modernisation mindset focused on software products. By focusing on strategic software modernisation, organisations can remain resilient and competitive in an ever-evolving digital landscape.
Good luck.
