The Biggest IT Modernization Barriers Enterprises Face
IT modernization comes in many forms. The key to success lies not in the specific technologies organizations implement, but in how effectively they align those technologies with their business goals and the environment in which they operate. When done right, modernization builds capacity, shapes industries, and even redefines markets. It’s about moving the business from its current state to a future filled with possibilities by maximizing the value of both existing and potential technology investments. This enables organizations to innovate in ways that set them apart from the competition.
To achieve this, businesses require end-to-end tools that embed the expertise necessary to navigate their modernization journeys. Recognizing this need, Rocket Software and Forrester Consulting evaluated IT modernization strategies involving the mainframe and the critical role external partners play in this process. The survey of 309 global decision-makers responsible for mainframe modernization revealed that success hinges on a combination of expertise and capabilities. The right platform can accelerate your transformation by aligning technology investments with your business objectives, enhancing the use of both new and legacy data sources, and enabling progress without disrupting ongoing operations.
IT decision makers say 90% of app re-write attempts fail on the first try
A core piece of IT modernization is rewriting legacy applications for newer technologies. This includes making mainframe applications compatible with the cloud. Unfortunately, this is also a core challenge for many IT teams.
Despite allocating 18% of modernization budgets towards application re-writing, 90% of decision makers said these projects failed on the first attempt. Furthermore, over half (51%) of respondents said they have attempted at least six application re-writing projects as part of their organization’s cloud migration strategy due to multiple failures. The fact that respondents continue with these projects despite multiple failures shows their understanding of the need for modernization.
Forrester says companies rewriting applications for modernization purposes need to find the right partners to fill gaps in skills, technology, and software for these application modernization projects to be successful.
Security concerns block IT modernization success
The biggest hurdle to IT modernization is concerns over security and risk, according to 41% of respondents. This is because modernization can impede productivity with elongated downtime and leave organizations vulnerable to security issues, which is indeed a risk.
What plays into concerns of risk is that IT teams lack the necessary talent and skills to modernize effectively, according to 38% of IT decision makers. Other related challenges to modernization include complex integration strategies, according to one-third of respondents, while 30% say there are issues with inadequate software platforms and the ungoverned use of new technologies like AI. The latter is a cause for concern for organizations in regulated industries.
Forrester again recommends overcoming these concerns and challenges through experienced partners. Partners fill the knowledge gaps by bringing a wealth of experience. This delivers peace of mind to IT professionals that their modernization journey is mapped out and in good hands. Modernization solutions combined with a partner company also quells concerns of security issues and other risks, while making integration strategies simpler.
Impact on business operations
IT modernization challenges can cause disruption to business operations when not handled correctly. This ultimately impacts efficiency and productivity, which can prove costly.
Nearly half (44%) of respondents said modernization challenges have led to delayed timelines, while one-third said these issues resulted in reduced productivity. From a competitive standpoint, 38% of decision makers said these challenges hurt their ability to recruit talent, while 35% said it reduced their ability to compete. Lastly, 40% of decision makers said that these challenges increased operating costs.
To overcome these challenges, organizations are investing in people, processes, technology, and partnerships. According to Forrester, roughly 2-in-5 decision makers work through these challenges by investing in new technologies to drive innovation and partnerships. Furthermore, nearly half of decision makers said they are upskilling and training employees for IT modernization.
At the end of the day, IT modernization is about having a sound plan before the process begins. The best way to do that is to have experienced partners who can fill any skills, or technology voids a company might be experiencing.
To read the full Forrester report, click here.
