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How Cost Effective Application Modernization Services Can Set Your Business Free
Application modernization services enable a business to adapt to changing technological environments and thus keep the business moving. In other words, application modernization service is about an upgrade from an old system to a newer platform. In the past, business enterprises have considered technology management as a separate function associated with technocrats with almost no back-and-forth connection to the business. Technology mainly played the role of automating the production process at various scales, mainly in the manufacturing sector. Automation of production was concerned with investments in fixed capital in plant, equipment, tools and machinery. Very often this mechanization was integrated with an assembly line production system, an idea of the Ford Motor Corporation. This allowed business enterprises to maintain production flow, proactively execute inventory planning, and reap the benefits of economies of scale. However, problems were observed whenever those defects were identified in the products. But the heavy dose of using legacy systems meant that the damage was already done leaving no room for any sort of hydraulic option. In addition, legacy systems from manufacturers posed another problem, that of upgrading the system when required. Legacy systems meant that there was no opportunity to modify the production system with waste innovation when the need arose. Too often business enterprises had to continue with the old ragged systems and thus incur losses or renew the entire system stopping the production process. Both of these options led to wasted resources, high opportunity costs in terms of lost business due to stoppages and delays.
In the modern era, automation has penetrated even deeper into business. It has included not only production processes as stated above, but also business processes. Thus, in the technologically advanced state of things, business enterprises must manage business process automation rather than production process automation. Digitizing the back-end and front-end capabilities of a business requires a brainstorming of issues that are very similar to those that existed in years past. We take a look at some of the challenges that can plague the modernization of software applications and how legacy systems can be effectively addressed.
Top Management’s Myopic Vision in Eliminating the Need for Modernization
In the world of software, innovations rarely die. In fact, there is always a steady stream of innovations that continue to flow either in the form of new versions of operating systems, languages or handheld devices. However, an innovation only sells if it brings significant additional value to the table. In this context, then, the natural instinct of a senior management business leader responsible for change management is to go with the tried and tested formula and maintain legacy application systems. If the new alternatives and improvements don’t bring real business value to the table, it also becomes difficult to sell everyone and anyone else on the idea of a modernization requirement. In some cases, enterprises also question the need to modernize or transfer from an existing system to a new one, citing the reasons for sustainable productivity levels and the organizational learning required to adapt. The danger involved in avoiding the risk of an application modernization is that the bigger picture sinks in very slowly, almost at the bottom of the competition. At a time when businesses feel the need to let go of the old and embrace the new, the new has already become a trend that deprives businesses of the first mover advantage. From here on it’s just a matter of keeping pace with the competitors, more like still being in the race, but the chances of winning are almost nil. The advice here is simple. If an application needs modernization, it should be done the first time to gain a competitive advantage.
High costs of installation and returns on investment from Legacy Systems
The second major challenge facing business enterprises comes in the form of high shutdown and return on investment costs stemming from legacy systems. While the former challenge is very opinion-driven, the latter is data-driven. Software vendors in their drive to retain accounts build high fixed cost elements into applications, thus making a renewal mission a costly affair. In addition, application maintenance and troubleshooting services also add to the fixation of a business with an existing vendor. Additionally, businesses also tend to maintain outdated systems in their quest to maximize returns on investment. While these are important economic considerations, there are inherent risks in nursing applications in this manner. First, as businesses grapple with legacy applications, driving investment, coding, and migration to new applications becomes even more difficult. Second, putting off application modernization for too long can completely cripple the business flow when it needs to be done. Application modernization allows a business enterprise to be ready for a continuous stream of improvements as and when they come to market, with minimal coding and capital investment.
Abstract: Application modernization services present a vicious circle for an enterprise. While there is always a temptation to maximize returns on investment by supporting legacy applications, there are significant costs involved. The longer the delay in modernizing an application, the greater the cost incurred when it finally has to be done. Additionally, business leaders who are empowered to take a call on technology issues must be forward-thinking to understand the need to embrace application modernization service in a timely manner so that future improvements can be done with minimal coding and cost.
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