Answer 10 Tough Questions to Justify IT Modernization

Pat Phelan
VP, Market Research
3 min read
Answer 10 Tough Questions to Justify IT Modernization

IT system modernization can be achieved in different ways.  Operational excellence in core and operational IT systems is a key part of most system modernization efforts.  It contributes to profitability and makes the systems better able to accommodate change.  Many currently deployed enterprise-level IT systems provide a strong foundation for change. For these systems, modernization will most often occur at the edges of the bespoke system. With proper maintenance and optimization, these systems will continue to support modernization for years.

For other IT systems, modernization means conversion, rewriting or porting the system to a new application or platform or architecture. In some scenarios, currently deployed IT systems will struggle to support future developments and may need to be replaced. For all, modernization is continuous as market forces and technological developments emerge.

Follow the money to uncover low-value IT spend

How much do you think your organization wastes on low value tasks for management or maintenance of older IT systems? According to a survey of 300 ANZ IT and business leaders, the answer is an average of 144 hours per week, or the equivalent of 3.6 full-time equivalent (FTE) staff.

That’s one of the top questions every IT and business leader needs to ask to justify a smart path to systems modernization that will better fulfill your digital transformation strategy, address security challenges, and target profitability.

Get control of your digital transformation planning horizon

Another tough question is whether your digital transformation (DX) strategy and digital business plans are focused on just what’s happened over the past 5 years, or are they tailored to deliver now but also drive the next wave of change. If you’re on a second, third, or fourth DX program, you may be at risk of “DX fatigue” eroding support for your transformation efforts.

Based on the Tech Research Asia (TRA) survey of ANZ respondents, Rimini Street has developed a report that may help your efforts to justify, and fund needed modernization efforts. That’s what 88% of survey participants say is their top IT management focus, but in 2-out-of-3 cases is over time and over budget.

Balance investments across growth and cost optimization objectives

Growth remains the clear business priority for 2023, according to TRA research, but now it is tied not just to revenue but especially to profit margins. That’s why the top IT management priority is modernizing core systems to create better performance, efficiencies, and lower costs. The second priority is keeping current IT running, so the organization can deliver for today while modernizing for tomorrow.

Success with digital business depends on core and operational IT system modernization

Is modernization an on-going part of your IT strategy? Be wary of cutting modernization efforts when budgets are tight. Cutting investments could lower your ability to respond to emerging market forces and technological developments.

It’s important to be able to answer tough questions with information and data that will convince budget decision-makers that your organization has the right transformation strategy and merits the modernization investments you are recommending.

Do you have a data-driven profitability plan that truly understands the costs and value of operational and core systems and how to optimize their management and performance? To get there, you need to follow these practical steps:

  • Assess current IT systems
  • Develop a profitability plan
  • Establish metrics and KPIs
  • Implement cost-saving measures
  • Continuously monitor and optimize IT systems
  • Take a unified approach to enterprise software support and services

Do you think you can get more value out of your current core and operational systems vendor? Identify gaps that can be filled with – and areas that can be improved with your current vendors in addition to looking for new solutions that could better meet your needs.

To learn more about this important report and its modernization insights that you can’t afford to miss, read the full report now.

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