When businesses aim to modernize applications, whether for external use or by their clients, they can expect different results. For instance, enhancing performance, minimizing maintenance requirements, improving security, and reducing costs. Every goal is worth precisely describing, but in this article, we pay attention to how to plan your app modernization strategy for optimizing future costs.
Strategic Approach: Custom Modernization for Cost Optimization
Outdated applications lacking integration raise costs and risks for established organizations. They repel customers seeking seamless multi-channel experiences while drawing in attackers looking to exploit security weaknesses.
Yet organizations must allocate substantial funds to maintain existing capabilities when they need to compete with new digital-first disruptors.
Yes, implementing new technologies to revolutionize core platforms, data, and processes can optimize budget, deliver immediate financial relief, and open up long-term revenue opportunities.
Indeed, you can reduce legacy expenses by avoiding duplicate software, discontinuing infrastructure license fees, offshoring select tasks without compromising speed and efficiency, and redeploying the workforce instead of hiring more expensive personnel.
However, the critical question is: Can CIOs employ a strategic approach to digital transformation that enables cost reduction after application modernization? Let us answer further.
Step-by-step Modernization
Numerous legacy applications are deeply ingrained in business processes and house valuable data accumulated over the years. Companies should integrate this data rather than hastily relocate or modify it. It allows saving its value while facilitating new functionalities. For instance, you can envelop the legacy application in a contemporary interface or link it to new systems via APIs.
Rather than a wholesale replacement of a legacy application, an incremental modernization approach offers a controlled, lower-risk transition. Gradually building upon existing data systems reduces disruptions, financial burdens, and the risk of data loss or corruption.
This flexible modernization approach simplifies the adoption of new technologies, ensuring effective operations and a gradual adjustment of skills for IT staff.
Move Customizations to Microservices, Not the Core
This principle addresses application architecture and focuses on segregating core functionality from customizations. When you shift only customizations or special features to distinct microservices, the transformation may not be as extensive as a complete shift to a microservices architecture for the entire application.
That simplifies updating or replacing these specific components without impacting the entire system.
Microservices can be deployed independently, allowing for flexible scaling according to demand, which enhances resource efficiency. Transitioning to microservices can expedite development cycles.
Teams can concurrently work on various services, facilitating faster deployments. Moving customizations from the core system to microservices simplifies troubleshooting and application management, enhancing overall maintainability.
Prioritize the Modernization of Essential User Journeys
Please rewrite clearly and briefly: “Such modernization efforts focus on the most important and frequently used workflows in an application, to maximize the impact in terms of user satisfaction, productivity, and overall ROI.
It involves modernizing essential “journeys” or workflows, which are a series of interactions that users go through to accomplish a specific task within the application.
For example, in a project management application, a crucial user journey could include the actions to initiate a new project, assign team members, and allocate resources. This journey is labeled as “critical” because it is vital for the application’s core functionality and directly affects user productivity and satisfaction. If this function operates slowly and frustrates users (customers or employees), it will be given high priority in the initial scope.
Managing the risks of modernization is simpler when it focuses on specific, well-defined areas of the application.
Conversely, arbitrary modernization involves updating or upgrading multiple aspects of a system without focusing on specific areas requiring improvement. For instance, a company might choose to update its entire software stack simply because some technologies are seen as outdated. However, this approach can be expensive and may not yield the expected returns, as not all parts of the system necessarily need updating or may not be crucial for business operations or the customer experience.
Modernizing Integration
Many organizations have already made substantial investments in various tools and platforms. Integration enables you to make the most of these existing investments by connecting new technologies to older systems, thus expanding their usefulness.
In a complex organization, different departments or teams frequently depend on various systems to perform their tasks. Giving priority to integration ensures that data can move seamlessly between these systems, enhancing operational efficiency. Make sure that various systems can communicate and collaborate seamlessly, rather than modernizing individual systems.
While there are advantages to modernizing individual systems, prioritizing integration often yields broader benefits, especially for complex or expanding organizations. Integrated systems are usually easier to scale, enabling smoother transitions and expansions. They also typically exhibit greater adaptability to changes. Whether you are adding new functionalities or replacing an old system entirely, if you’ve emphasized integration, you can efficiently manage the impact of such changes.
Transferring Non-Differentiating Functions from the Core App to Specialized Third-Party SaaS/PaaS Solutions
SaaS typically replaces a specific function or application entirely. PaaS offers the foundational components that make it easier for you to develop and oversee your custom applications.
For example, consider your in-house application with a reporting feature. This feature depends on a particular database and server setup. Rather than handling this internally, you can entrust it to a PaaS solution. This PaaS option provides the necessary database and server resources. That enables your team to concentrate exclusively on the logic and user interface of the reporting feature.
Keeping in-house solutions for non-core functions can be costly. Shifting non-essential tasks to third-party services allows a business to concentrate on its core strengths, such as product development, customer service, or other key competencies.
Third-party solutions are plug-and-play, speeding up development cycles and expediting product or feature launches.
Utilizing third-party solutions eliminates the need for you to manage software maintenance. The service provider cares about updates, security patches, and new features.
Creating a Global Platform with Support for Local Customization
That is especially important for enterprises that operate in multiple regions or countries. This approach seeks to standardize essential functions while retaining the flexibility to accommodate local requirements, regulations, or customer preferences.
The global platform would encompass fundamental functionalities shared across all markets. These may comprise basic product or service features, security protocols, data storage, and management. Standardizing these elements ensures consistency and efficiency.
Above the global foundation, you would construct specialized modules that seamlessly integrate with the core platform. These modules can address region-specific needs such as language adaptation, currency conversion, tax calculations, or even market-specific features.
Technologically, you can accomplish this using a modular architecture or microservices, enabling the independent deployment of localized features. APIs could facilitate communication between the core platform and the localized modules.
You can update or scale the core platform without impacting the localized modules. That ensures consistency in core functionalities and user experience, regardless of the location. The architecture enables rapid adjustments to local market conditions, regulatory changes, or customer preferences. Common functionalities are centrally developed and maintained, reducing duplication of effort.
