Enterprise competitiveness is defined increasingly by the speed at which organisations can adapt. Yet that adaptability can be constrained by legacy applications; systems that were once assets but now limit scalability and resilience.
Application portfolio modernisation has therefore the potential to move from an IT ambition to becoming a priority. Keeping systems running effectively and safely is operationally necessary, but enabling new business models and improving time-to-value are also important.
For many companies, modernisation isn’t a process of upgrading but an opportunity for an operational and/or cultural reset. Can the business (defined as its people, and silicon systems in combination) innovate at the pace markets demand?
Why modernisation matters now
The “if it isn’t broken, don’t fix it” logic has applied in enterprise IT for decades. Yet systems that fail to evolve quickly enough can become costly security liabilities. Modernisation, by contrast, creates tangible business impact, yet at some risk.
Teams and decision-makers should consider their underlying reasons for seeking modernisation of their applications, but be aware of the golden rule: any software project cannot be used as the driver of cultural change in a business.
Decision-makers therefore need to consider some of the following questions, and consider whether any issues identified spring from human processes and strategies that have naturally evolved, or are caused by outmoded, legacy technology.
- Is the issue agility? Cloud-native and modular architectures let development teams deploy new features or integrations more quickly, and flexibility means business units can respond faster to regulatory change or customer demand.
- Do cost and complexity mean a cloud migration? Shifting from capital-intensive infrastructure to scalable cloud platforms converts unpredictable maintenance expenditure into more manageable operational costs. But over time, what are the cost differences between CAPEX and OPEX?
- Are there concerns around security and compliance? Re-engineered applications can embed the newest protocols and encryption standards from the start, avoiding backwards engineering of core libraries.
- Is the user experience fit for 2025? (And this should be considered both an internal and external question.) Employees may get access to faster and more intuitive tools than what’s present on legacy platforms, while customers may need to see responsive services they expect.
Building a modernisation roadmap
After audit and architecture choices, modernisation strategies vary by workload. Re-platforming means moving applications with minimal code changes. Refactoring delivers longer-term efficiency by redesigning software for cloud-native performance, but comes with higher risk and, potentially, costs. Rebuilding or replacing may be necessary for systems that are too rigid or outdated to adapt.
Execution should be iterative. Breaking any programme into phased releases helps maintain service continuity, manage costs, and demonstrate value early. The iterative approach to modernising the software application portfolio should move in step with cultural change: staff training, strategic planning, and organisational changes.
Modernisation as strategic infrastructure
An outdated application portfolio can be a technical liability, a growth limiter, a governance nightmare, and a security incident waiting to happen. Any modernisation agenda should therefore be treated as a rolling investment in the business. But without corresponding changes to the ways the business works, investment in technology will not yield full value.
That’s especially true in the case of implementing any modernisation programme with a view to broad adoption of AI. Unlike previous generations of software, decision-makers should be aware that AI needs a near-total rethink of every aspect of the business, its processes, and its data infrastructure. That’s a tall order for many organisations.
An application portfolio is measurable in operational agility, not code count nor the use of AI. A modern IT infrastructure supports mergers and system integrations, helps secure compliance, and can provide the foundation for AI-enabled services, should that be the goal.
The roadmap for modernisation isn’t a picture of immediate perfection, but is described as a series of measurable progress-points. Enterprises that begin their modernisation journey are taking positive steps – however small – towards efficiency, resilience, and innovation for the next decade.
(Image source: “Modern Silhouettes: Radio” by roy costello is licensed under CC BY 2.0.)
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