A new era of modernization: Accelerating the journey to value

Introduction: The great legacy reckoning

The widespread and highly costly IT outage of July 2024 was another painful reminder of the need for organizations to reinvent legacy technology systems to make them more resilient.

But modernization can do much more than shield the business from risk; it’s also an opportunity to lower total costs of ownership, improve experience for customers and acquire competitive advantage. 

i. Modernization misconceptions

Despite the name, modernization doesn’t always mean rushing to adopt everything shiny and new. More important is to reach an honest assessment of where the organization’s technology assets are fit for purpose, and where they may be falling short. By identifying what needs to change the business can chart a path of steady, incremental improvements that build long-term momentum. 

ii. Establishing alignment 

Modernization is a process of technological change, but a degree of organizational transformation needs to come with it. Sometimes the ‘superheroes’ who have mastered aging systems may be reluctant to see them go, and entrenched power structures will need to be challenged. Demonstrating that the modernization program is closely aligned with organizational priorities and poised to deliver measurable value is the best way to secure the internal support needed to see it through. 

iii. Getting to know your systems 

Successful modernization depends on developing a holistic understanding of the complexities and dependencies of legacy architecture, right down to how individual applications support different aspects of the business. Knowing how systems link to different functions and deciding where change can drive the most results will help eliminate the all-too-common uncertainties around where a modernization initiative should start. 

iv. Moving on from the mainframe 

At some point on the modernization journey, most organizations will also have to unpack the mainframe, which often supports systems built up over generations. Mainframe modernization is a delicate process that can entail running old and new systems in tandem, and introducing teams to new engineering practices. However, with the right approaches and safety nets, it doesn’t have to be disruptive, and it will leave the organization’s tech estate leaner and stronger.

v. Taking advantage of new tools

New AI-powered tools promise to make the entire modernization process easier, notably by identifying and categorizing the intricacies of legacy systems built up over decades. These are already significantly accelerating once-exhaustive processes like unearthing duplication or spotting problems in code. Rather than a ‘silver bullet,’ Thoughtworks experts advise organizations to see AI as one tool in an expanding arsenal of solutions that should be deployed differently, depending on each business’s circumstances.

vi. A modernization state of mind  

As innovations like AI reshape the process, modernization needs to be pursued in a way that leaves room for the enterprise to take advantage of new technologies and approaches, and even to alter direction if needed. Thoughtworks experts note modernization doesn’t ‘end’ so much as it builds organizational reflexes, enabling the business to embrace future changes and adapt quickly, with minimal growing pains.