Goals of system modernization

The initial situation of many companies today is characterized by a heterogeneous application landscape that has grown over years or even decades.

This often consists of a mix of legacy applications that are based on old or outdated technologies and more modern applications that are not always seamlessly integrated with each other.

The databases and interfaces between these systems are often also outdated, which significantly limits the efficiency and flexibility of the IT infrastructure.

The problems that companies face can be divided into several categories, including:

Technological backwardness

Outdated software and hardware put companies at a significant competitive disadvantage because they cannot offer the speed, efficiency and functionality of modern technology solutions. For example, older systems cannot efficiently handle large amounts of data, which is essential in today's data-driven world. The inability to use current software tools or platforms leads to slower development cycles, lower productivity and ultimately a loss of market position as competitors who invest in modern technologies can innovate faster and better meet customer needs.

security risks

As software and hardware ages, the risk of security vulnerabilities increases as manufacturers stop supporting older products and stop providing security updates. This neglect leaves systems vulnerable to attacks that target known vulnerabilities. Cyberattacks can lead to data loss, business interruptions and significant financial damage. In addition, security gaps endanger the trust of customers and partners. Companies that operate on outdated systems therefore expose themselves to an increased risk of becoming victims of cybercrime.

High operating costs

Maintaining and operating outdated systems is usually associated with high costs. Older technologies require specialized know-how, which is becoming increasingly rare and therefore more expensive on the job market. In addition, direct maintenance costs increase because replacement parts for older hardware are difficult to find and are often more expensive. Energy efficiency is another cost factor, as older hardware tends to use more power than newer, more energy efficient systems. These costs can strain a company's financial resources and tie up resources that could be used elsewhere for innovation or growth.

Complexity and lack of flexibility

An outdated IT landscape increases the complexity of the company's infrastructure as new solutions and systems have to be developed around existing, outdated technologies. These patchwork approaches result in even greater technical debt, further limiting IT flexibility. Companies find it difficult to respond quickly to market changes, adopt new business models or meet customer requirements efficiently. The ability to integrate also suffers because older systems are often not compatible with new applications or data formats.

Data isolation

Outdated database systems and interfaces lead to data isolation, where important information is stored in silos that cannot communicate effectively with each other. This makes data integration and analysis difficult, which in turn leads to inefficient business processes. Organizations are failing to realize the full potential of their data, hindering decision-making and the ability to develop data-driven strategies. The lack of ability to seamlessly aggregate and analyze data also prevents the use of advanced technologies such as artificial intelligence and machine learning, which are critical to optimizing business processes and creating competitive advantage.

Decision-makers should therefore not hesitate to modernize their application landscape step by step or continuously.

An modernization With our support it can look like this:

1. Inventory and analysis

First, a detailed analysis of the existing application landscape is carried out in order to understand which systems need to be modernized and which dependencies exist.

2. Planning the modernization strategy

Based on the analysis, a tailored modernization strategy is developed that meets the company's business goals and technological requirements. Aspects such as cloud migration, microservices architectures or the introduction of API management systems are also taken into account.

3. Implementation and migration

Modernization can include new application development, migration of existing applications to modern architectures, or introduction of new database systems and interfaces. Agile development methods are used to enable flexibility and rapid iterations.

4. Integration and optimization

The modernized systems are seamlessly integrated into the existing IT landscape and continuously optimized to ensure high performance and efficiency.

The advantages of such modernization are diverse:

• Updating to newer technologies closes security gaps.
• Modern systems often require less maintenance and are more efficient, which saves costs in the long term.
• New technologies make it possible to react more quickly to market changes and to scale systems if necessary.
• Modern data architecture improves data availability and analysis, leading to better business decisions.
• Modernization allows companies to adapt new technologies and business models more quickly, giving them a leg up on the competition.

Modernizing the application landscape is therefore a crucial step for companies to ensure their competitiveness and remain fit for the future.

With the right strategy and support from experienced IT service providers like us, companies and decision-makers can successfully master the challenges of digital transformation.

Author

Bernd Guenter is Head of Sales & Marketing at it-economics, with international experience in consulting, business development, sales and management of multinational customers.

He is an expert with proven track record in modern software development, delivery leadership, digital and cultural transformation, agile project development and IT.

For many years, the experienced manager has ensured that companies in digital change are successful with the right multifunctional teams, technologies and innovations and that they convert their ideas into solutions.

Contact Bernd Günter LinkedIn