In today’s fast-paced technological landscape, businesses are faced with the imperative to modernize their systems to avoid obsolescence. Jabin Geevarghese George, a Global Fintech Transformation Leader at TCS, specializes in Enterprise Systems Modernization, Fintech, and Agile practices. The AI era has brought new challenges and opportunities for companies, with enterprises that embrace modernization unlocking unprecedented levels of efficiency, scalability, and innovation. However, many modernization efforts fall short due to poor planning and execution, with reports indicating that 70% of digital transformations fail to achieve their goals.
Enterprises often struggle to keep pace with rapid shifts in business imperatives and technological advancements, necessitating new models in core IT systems. The modernization of legacy applications is crucial to maximize their value, yet many enterprises fall into the trap of simply migrating applications without true modernization. A “lift and shift” approach without proper modernization can result in missed opportunities for agility, scalability, and cost efficiency, with the clutter of too many products, platforms, and tools often leading to failures in large-scale enterprises.
Holistic modernization is essential to fully realize the benefits of new technologies, involving simplifying the IT core, integrating platforms, systems, and processes. Organizations can streamline operations and reduce risks by applying digital twin capabilities, enhancing infrastructure resiliency, and implementing AI observability. A zero-risk strategy and last-mile impact checks are vital to achieving seamless modernization, with a cohesive strategy integrating products, platforms, systems, and processes leading to successful modernization and sustained competitive advantage.
Companies seeking to maximize the benefits of modernization should adopt best practices such as strategic cloud adoption, automation, cloud-native technologies, continuous observability, security protocols, and leveraging GenAI and AIOps. The SMART framework, which encompasses components like strategic foresight, measurable outcomes, adaptability, relevance, and transformative impact, provides a structured approach that can help companies achieve success in modernization efforts. By following this framework, organizations can avoid common pitfalls and achieve substantial business benefits in terms of efficiency, scalability, and resilience.
Looking towards future directions, enterprise systems modernization remains crucial for staying competitive in the AI era. A strategic and holistic approach, supported by best practices and frameworks like SMART, can unlock significant value and drive sustainable growth. As AI and GenAI technologies continue to evolve, companies should remain agile and proactive in their modernization efforts, with future directions including deeper integration of AI, enhanced data analytics, and continuous innovation. By embracing these strategies, enterprises can ensure they are well-positioned to thrive in the dynamic digital landscape.
