5 factors for successful software modernisation

Our six-part series of articles covers all important aspects of software modernisation. This is the fourth article in the series. An overview of the topics is provided at the end of this article.

1. Stakeholder Management – Ensure needs-driven modernisation

Every modernisation project affects different stakeholders – from the IT department to management through to end users and external partners. All stakeholders have their own unique requirements and expectations that have to be considered. A successful modernisation process therefore requires careful identification and involvement of all stakeholders.

It is critically important to include relevant stakeholders early on in the process. Management must be able to recognise the strategic importance and business objectives, while the IT department focuses on the technical requirements and potential challenges.

End users, in turn, play an important role when it comes to defining usability requirements and ensuring a high level of acceptance of the new system. Transparent communication and the active involvement of stakeholders helps to overcome resistance  and create a shared vision. Analysing the different interests and defining shared goals ensures that all stakeholders are on the same page and working towards the same goal.

2. Communication – Promote acceptance and motivation

Communication is an often underestimated key factor in software modernisation. The complexity of projects requires a clear and targeted exchange of information – both within teams and with stakeholders. Regular updates and open communication channels prevent misunderstandings.

It is important to differentiate between the functional and non-functional requirements of the existing system in order to ensure that the type and priority of these requirements are appropriately addressed in the modernised version. As a general rule of thumb, communicate the benefits of modernisation from the point of view of end users and stakeholders in order to promote acceptance and motivation (find out more).

Early risk detection paves the way for transparent communication. Knowledge of the existing systems can often be fragmented or outdated. The following measures can help to ensure that knowledge of such systems is up to date.

• Conduct workshops and interviews to uncover hidden dependencies, inefficient workarounds and critical business processes in the legacy system.
• Seek information from experienced users as well as the original developers of the system (if they are still available).
• If the existing documentation is inadequate or outdated, arrange to have people who are familiar with the system create or update such documentation.

3. Business Opportunities – Unlock the benefits of modernisation

Software modernisation should not be viewed solely as a technical necessity, but also as an opportunity to unlock new business potential and future-proof the company. Both technical expertise and strategic planning are essential in order to harness the potential of modernisation. This includes thorough analysis of the current state of the existing software, including its security vulnerabilities and redundant functions, as well as identification of the technical liabilities that need to be addressed. The following business opportunities are critical for many companies:

Increased efficiency and lower costs

Modernised software allows processes to be automated. A new and more stable architecture also means lower maintenance and operating costs. If the software modernisation includes migration to the cloud, the company tends to achieve higher scalability and availability. Depending on the situation, the company may be able to manage its infrastructure in a different way. For instance, low acquisition costs and more dynamic scaling of infrastructure costs are two factors that can help to reduce costs.

Improved customer experience

Modernised software offers significant potential to provide users with a better, more intuitive and effective experience. New software designs can help to significantly optimise usability – for example, with easier-to-use user interfaces, which can increase user and customer satisfaction and loyalty. Similarly, data-driven insights can be used to create customised user interfaces in order to create personalised experiences and meet increased expectations.

Expansion of existing business activities

Modernised software paves the way for offering digitalised services – especially if migration to the cloud has taken place. Subscription-based services (X-as-a-Service, XaaS) offer many advantages over traditional service models and can tap into new sources of revenue. They can also enable market entry into new regions or industries or offer the possibility of scalable or localised services.

Competitive advantages

Modern software enables the integration of technologies such as IoT and AI, increasing agility, improving the ability to innovate and potentially facilitating IT security and compliance. On the job market, modernised software boosts the company’s profile when it comes to attracting new talent: Highly skilled professionals prefer employers with state-of-the-art working environments. This also simplifies their work and reduces the frustration often caused by outdated systems.

4. Financing strategy – Take a long-term approach to modernisation

A realistic financing strategy is essential to the success of any modernisation project. Without precise planning and sufficient resources, it can falter or even fail. Companies have to ensure that the necessary funds are available throughout the entire project – even if the company’s core business activities temporarily require more resources. Long-term financing models and regular planning updates are crucial for a sustainable and stable modernisation process.

5. Technological Excellence and Quality Assurance – Create resilient systems

The introduction of modern technologies and architectures as well as automation methods, such as Continuous Integration (CI) or Continuous Deployment (CD), make software and its delivery more flexible and efficient. The resulting technological excellence not only enables improved scalability, but also promotes innovation and productivity in development. This means that companies can respond quickly and flexibly to market changes and effectively implement new features and services.

Modernisation also promotes continuous quality assurance of a software system. The use of new tools for real-time monitoring or data analysis provides insights into system performance and user experiences. Errors can be detected early on and user behaviour analysed. These insights form an important basis for iteratively and continuously improving the software using agile development approaches, focusing on long-term evolvability. Modernised code generally facilitates maintainability and increases robustness of systems.

Further articles on software modernisation in the bbv blog:

• Blog #1: Software modernisation: Everything you need to know?
• Blog #2: Software Modernisation Canvas: Structured for success
• Blog #3: Strategies for successful software modernisation
• Blog #4: The five most important factors for successful software modernisation
• Blog #5: The future of legacy systems: from modernisation to evolvability
• Blog #6: Artificial intelligence in software modernisation