Developing a Modernization Strategy: Evaluating the Options by Chris Koppe
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The document outlines a modernization strategy for organizations, emphasizing the importance of setting clear goals and objectives to enhance IT systems. It discusses various modernization approaches such as code restructuring, user interface improvements, and mobile access, while highlighting the importance of aligning IT projects with business goals to create value. The presentation also addresses challenges in securing funding and support for modernization initiatives and stresses the need for a phased, strategic approach to ensure successful implementation.
Developing a Modernization Strategy: Evaluating the Options by Chris Koppe
- 1. European Tour 2015 DUSSELDORF- ZURICH - VIENNA - PARIS - STUTTGART Oct 27th – Nov 5th, 2015
- 2. Developing a Modernization Strategy EvaluatingtheOptions Chris Koppe Vice President of Strategy
- 3. Agenda Modernization Strategies Establishing Goals and Objectives Strategy Definition Planning Getting Funding and Support 1 2 3 4 5 3
- 4. Setting the Context What does modernization mean to me? Modernization+Strategies1 4
- 5. Code / Business Logic User Interface (5250) Technical View of Modernization (Simple version) • Code restructuring / modularization • RPG-Free Format • Data Access modularization • Code Transformation Database • GUI / Web Enablement • Mobile Access • Workflow Optimization • Desktop Integration • DDS to DDL • Data accessibility (long names, data model, reporting, etc.) • Data security (RCAC) • Data integrity (foreign key constraints) 5
- 6. Increased customer retention Increased productivity Sample Modernization – GUI Improvement 6
- 7. 3500 hours saved per month across 175 users $ 10 days from start of project to iPad application delivery Problems Solved! 10days Sample Modernization – Mobile Access 7
- 8. Sample Modernization – Code Transformation 8
- 9. 9 Establish a Long-Term Vision What does your IT look like in 10 years? Establishing+Goals+and+Objectives2
- 10. What does your IT look like in 10 years? • What problems / might I be facing? Skill sets, resource availability • What might the technology landscape look like? • The impact of mobility and changing interfaces • What pressures might the business be facing? • Will IT be supporting / championing competitive differentiation, streamlined operations, increased profitability? • How will we support business agility and the pace of change? 10
- 11. Challenges facing IBM i shops in 10 years • Access to skilled resources Retirement Increased costs • Pressure to keep up with what others are doing • Pressure to respond quickly to changing business conditions and opportunities (agility) • Pressure to innovate for the business • Pressure to reduce costs (increase profitability) 11
- 12. Where does your business want you to be in 10 years? • Platform & Applications • Languages & Technologies • Database • Reporting / Decision Support • User Interface • Interfaces with customers and suppliers • The impact of mobility 12
- 13. 13 Drivers and Objectives What are your modernization goals? Establishing+Goals+and+Objectives2
- 14. Modernization Technical Goals • New Graphical / Web User Interface • Mobile Access • Reporting and Data Management • Big Data Opportunities • Interfaces via Web Services • Lead innovation efforts • Leverage new technologies and approaches 14
- 15. Modernization Business Goals • Agility • Reduce training / onboarding • Lower costs = increase profitability • Drive innovation beyond competitors • Enable new channels of access • Merger and acquisition integration • Compliance (SOX, HIPPA, etc.) 15
- 16. The Modernization Journey What does my journey look like? Strategy(Definition3 16
- 17. Modernization is a Unique Journey Unique Starting Point (languages, technologies, apps) Unique Destination (target technology stack, packaged apps, etc.) Uniquely staged to the needs of your organization Executed in a model that matches your need 17
- 18. Business Value Creation How do my modernization goals align to business goals?
- 19. What if… Some reputable company said… “Give us $1M and we will give you your system back in 1 year running on Linux in the latest technologies.” • It will do exactly what it did, the way it did it. (because changes cost more) • Oh… and we’ll need most of your top people for that year. • Why: Future-proofing & to be modern. • ROI?: Too far out to be meaningful Be the CEO or CFO for the moment.
- 20. Aligning to Business Value Creation • What does the business get out of it? • Move from an IT-centric perspective to a business-centric one • Existing IT budgets are rarely adequate to fund mid-to-large scale modernization initiatives • The business will need to sponsor and fund the project • A professional and strategic approach to the business is required So… what business problems are you solving? What is the Return-On-Investment to the business? 20
- 21. How to Create Business Value • Creating Value • Enabling new or incremental revenues • Saving money that translates into improved profits • Reducing effort, but only if it reduces labor / costs • Enabling new markets or increased market-share • It needs to be measureable and defendable • Why does the business need this and who will fund it 21
- 22. Business Value Creation example 22
- 23. Business Value Creation Example 23 Value Creation: Reduced operating costs Reduced printing costs Improved workflow Improved data quality Faster new user on-boarding Value Creation: Improved data quality Improved data timeliness Value Creation: Business flexibility Client servicing Value Creation: Reduced IT costs Reduced operating costs Improved agility Improved resource avail. New Order Entry Interface Move to Real-Time Modernize DB and Back Office App. Optional: Print Engine Replacement / Optimization
- 24. Sample Project Timeline 24 Start 12M 24M 6M 18M Stage 1: New Order Entry Stage 2: Real-Time Push Stage 3: App & DB Port Stage 4: Print Eng. Repl.
- 25. 25 The Big Picture Setting the strategy. Planning4
- 26. Modernization Challenges • Knowing where and how to start • Having a complete understanding and map of the existing systems (modules, programs, data, dependencies, etc.) • Knowing the difference between achievable and risky plans • How to assess risk • Getting funding and organizational support • Knowing what tools and approaches exist in the market and how to differentiate them “The pace of change has never been faster and the need for IT to predictably deliver has never been higher.” 26
- 27. 66% Software projects fail to be delivered on time or within budget Source: Mckinsey & Co., Oct, 2012 - Delivering large-scale IT projects on time, on budget, and on value Software Project Statistics
- 28. Source: Gartner Feb, 2012 – How to Increase Your IT Project Success Rate 24% Software projects fail completely Software Project Statistics
- 29. 17% of large software projects actually go so badly that they threaten the very existence of the company. Source: Mckinsey & Co., Oct, 2012 - Delivering large-scale IT projects on time, on budget, and on value Software Project Statistics
- 30. 56% Of those who modernize achieve all the expected benefits and more. Source: Gartner Feb, 2012 – How to Increase Your IT Project Success Rate Software Project Statistics
- 31. Finding the Right Strategy Maintain Modernize Replace Re?re Applica1on Support Services GUI, SOA & Mobile Enablement Re-‐hos1ng Automated Conversion Code Transforma1on Re-‐architec1ng / Re-‐engineering Re-‐write Packaged Applica1on Decommissioning Strategy Solu1on Application Modernization Strategies & Solutions
- 32. Adopt a Portfolio-based Approach Application Module Modernization Strategy Rationale Timeframe Accounting Packaged Replacement Non-Unique 2 years Payroll Outsource Non-Unique 12 months Shipping & Receiving Basic Modernization 12 months Tracking & Logistics UI, Desktop integration, workflow optimization, business Does not meet current business 6 months 32
- 33. Planning4 Planning How do I develop a modernization plan?
- 34. Planning Approach for GUI and Mobile Enablement Focus on User Experience Create Quick Wins 1 2 3 4 5 Engage Think Focus Create Adopt Engage with the users Think outside the IBM I Adopt Agile 34
- 35. Planning Approach for Large-Scale Modernization • Large-scale modernization projects require sizable funding and organizational support • Organizations expect results and predictability • Many businesses have experienced failures, have shaken confidence in IT’s ability to manage and deliver • For IT leadership, these are high risk / high reward projects (Career makers or career breakers) • IT leaders must invest in building strong business cases, validated by experts 35
- 36. Take a Phased Approach to Modernization • Organizations don’t like to invest into multi-year programs where the benefits only appear at the end. • Create a milestone-based plan • Establish a quick (and visible) win to show early success • What does the business get “along the way” 36
- 37. Planning Approach for Large-Scale Modernization Other Parallel Activities Solution & Project Business & Financial • Education on Tools & Approaches • Solution Due Diligence • Risk Assessment & Mitigation Plan • Alignment to Business Value Creation • Business Case • Funding Model, TCO & ROI Analysis 37 Portfolio Strategy Modernization Roadmap Scoping & Analysis Planning & Budgeting Modernization Project / Program 5-Step Process
- 38. Getting Organizational Support & Funding What does an organization want to see to fund and support a large-scale project • A clearly articulated business case • Supported by details (current state, future state, how = plan, resources, timeline, milestones, costs, spending schedule, scope, risks and mitigations, alternatives researched, rationalization) • How it aligns to creating business value and the future of the business • Milestone-driven, with funding gates • Thorough research, validated by experts • Executive sponsorship 38
- 39. What do you need to gather / build? Inventory Project Plan Strategy / Approach Document Budget (and pending schedule) Exec-level Presentation • Scope • Strategy and approach • Resourcing • Tools • Costing • Defining value to business (staged) 39
- 40. Getting Funding & Support How do I sell this to my organization? Getting'Funding'and'Support5
- 41. Each Modernization Journey is Unique • Unique Starting Point (languages, technologies, apps) • Unique Destination (target technology stack, packaged apps, etc.) • Uniquely staged to the needs of your organization • Executed in a model that matches your needs 41
- 42. Each Organization is Unique • Business challenges and growth strategies • State of IT and future vision of supporting growth and innovation • Approach to Cap-ex vs. Op-ex • Degree of rationalization and selling needed • Attitudes towards consulting 42
- 43. Selling the Strategy is Organization-specific 43 Build a strong business case Clearly define the business value creation and how it aligns to the priorities of the business. Pre-sell your strategy and plan to stakeholders long before they enter the room. • Enjoin them, integrate their input and ideas • Make them feel like its their plan Speak in business benefit terms (not technical)
- 44. 44 Start Now What do I do Monday morning?
- 45. Getting Started – The next 2-4 weeks 45 Step 1 Develop a Modernization Strategy straw-man • What apps are in the portfolio? • Define a timeframe • Define / draft what modernization looks like for each app in the portfolio • Define / quantify the Business Value of your strategy Step 2 Step 3 Seek input from line-‐of-‐business applica1on stakeholders Seek external valida?on on strategy and approach.
- 46. Developing a Modernization Strategy - Evaluating the Options Chris Koppe Vice President of Strategy chris.koppe@freschelegacy.com 46 Thank You!