A New Roadmap for Modernization

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In today’s highly competitive business environment where success is driven as much by “what you do” as “how you do it,” modernizing the IT landscape is a strategic priority. Decision-makers are increasingly under pressure to streamline business operations, comply with evolving legal/regulatory requirements, and bring new products and services to market faster. IT modernization is critical to achieve these goals. Unfortunately, for many decision-makers, determining how, what, and when to modernize can be a difficult, time-consuming, and costly decision. Moreover statistics show that a large percentage of IT Modernization projects are hampered by cost overruns, skill shortages, and a lack of visibility into key business process value streams.



Listen to Forrester analyst, Phil Murphy, and Guido Falkenberg from Software AG to discover the keys to a successful IT modernization strategy. Learn why organizations around the world are leveraging a new process-driven approach to identify, prioritize and implement strategic roadmaps for IT modernization.

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  • A New Roadmap for Modernization

    1. 1. A New Roadmap for Modernization: The Process-Driven Mandate for Achieving Business Excellence Bryan Quinn Director, Marketing Operations Software AG
    2. 2. September 6, 2011 | Software AG - Get There Faster | Guido Falkenberg VP, Enterprise Transaction Systems Software AG Phil Murphy Principal Analyst, Forrester Research
    3. 3. Will Your IT Organization Survive This Decade? IT Modernization Survival Strategies For The 2010s <ul><li>Phil Murphy, Principal Analyst </li></ul>March 29, 2011
    4. 4. “ In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment.” Charles Darwin
    5. 5. Agenda Adapt or perish IT modernization is hot, hot, hot Adaptive orgs become self-aware to let go of the past Adaptation is continuous and transparent Summary
    6. 6. IT changes happens fast …
    7. 7. Business change happens faster …
    8. 8. When there is a conflict between the two … Things don’t turn out so well for the gazelles IT organizations that don’t transform their ways are the gazelles of this decade
    9. 9. Agenda Adapt or perish IT modernization is hot, hot, hot Adaptive orgs become self-aware to let go of the past Adaptation is continuous and transparent Summary
    10. 10. IT Modernization isn’t cool, it’s RED HOT! Graphic source: “Application Retirement — It’s Time To Put The Elephant In The Room On A Diet” , February 2011 Data source: Forrsights Software Survey, Q4 2010 50%++ Base: 2,124 software decision makers (percents may not total 100 because of rounding) Mobile Cloud
    11. 11. Hotter than “sexy” issues like Cloud, Agile, and “Green” IaaS Agile Outsourcing Green IT Open source Graphic source: “Application Retirement — It’s Time To Put The Elephant In The Room On A Diet” , February 2011
    12. 12. Since modernization is so hot, how do we … Address this? Your portfolio Accomplish this? Speed / agility Avoid this? Death of IT It’s not a quick fix. Putting roller skates on legacy apps will make them mobile, but it doesn’t make them Agile
    13. 13. Agenda Adapt or perish IT modernization is hot, hot, hot Adaptive orgs become self-aware to let go of the past Adaptation is continuous and transparent Summary
    14. 14. We have to adapt: Evolve forward from old habits … <ul><li>Tech-centric approach worked in early years of IT, doesn’t anymore </li></ul><ul><ul><li>IT is a complex ecosystem, not an amoeba, expense increases with complexity </li></ul></ul><ul><li>Just because we have a new hammer, doesn’t mean everything is a nail </li></ul><ul><ul><li>Not every application needs to be new, mobile, green, open, agile, social </li></ul></ul><ul><li>Silos are good for grain and missiles, for apps? Not so much </li></ul><ul><ul><li>SOA began to erode the definition of an app, business process accelerates it </li></ul></ul><ul><li>The way we service the business is changing </li></ul><ul><ul><li>We’re shifting from automating manual processes to optimizing value streams </li></ul></ul><ul><ul><li>Speed-to-market is a make-or-break proposition </li></ul></ul><ul><li>The way we manage our portfolios has to change as well </li></ul><ul><ul><li>Think portfolio modernization, not application modernization </li></ul></ul>
    15. 15. Evolution requires self-assessment / awareness <ul><li>Inventory of existing application estate / portfolio </li></ul><ul><ul><li>Volume, redundancy, overlap </li></ul></ul><ul><li>Metrics about the applications </li></ul><ul><ul><li>Business function and value, technical make-up, health, etc </li></ul></ul><ul><li>Analysis and reporting </li></ul><ul><ul><li>By process, LoB, application owner, technology-base, business-value, etc </li></ul></ul><ul><li>Refresh </li></ul><ul><ul><li>Continuously where possible, periodic elsewhere </li></ul></ul>
    16. 16. Self-awareness enables insight, and adaptation Modernization Portfolio Mgt. Rationalization Strategic Planning Goal: Target: Tactics: (examples) <ul><li>Maintain </li></ul><ul><li>Reduce cost </li></ul><ul><li>Renew </li></ul><ul><li>Intelligence </li></ul><ul><li>Benchmarks </li></ul><ul><li>Trending </li></ul><ul><li>Streamline </li></ul><ul><li>Communicate </li></ul><ul><li>Prioritize </li></ul><ul><li>Optimize </li></ul><ul><li>Change planning culture </li></ul><ul><li>Collaborate with business </li></ul><ul><li>Change IT work culture </li></ul>Application Portfolio Portfolio All IT work <ul><li>Apply 4 fates: </li></ul><ul><li>Leave as is </li></ul><ul><li>Modernize </li></ul><ul><li>Replace </li></ul><ul><li>Retire </li></ul><ul><li>Gather metrics: </li></ul><ul><li>Business value / purpose </li></ul><ul><li>Fitness, function </li></ul><ul><li>Change and cost metrics </li></ul><ul><li>Use metrics: </li></ul><ul><li>Eliminate duplicates </li></ul><ul><li>Reduce waste </li></ul><ul><li>Reset work priorities </li></ul><ul><li>Improve estimation </li></ul><ul><li>Embrace transparency: </li></ul><ul><li>Mesh 3-5 year bus/IT plans </li></ul><ul><li>Create business / IT context </li></ul><ul><li>Recast plans against context </li></ul><ul><li>Orchestrate IT work to match </li></ul>Transparency Decisions Transparency Decisions
    17. 17. Adaptation sheds the past, evolves toward the future Silos Processes and value streams Application Modernization Portfolio Modernization Technology plans Business plans Source: Lean.org
    18. 18. Agenda Adapt or perish IT modernization is hot, hot, hot Adaptive orgs become self-aware to let go of the past Adaptation is continuous and transparent Summary
    19. 19. Express transparency in meaningful ways Business context Policy Claims Finance Business units Accomplish functions Inspection Supported by application(s) Appraise it Reimburse it Collect it Agent Interface Payment Salvage Agency Receivables Cash Cost Quality Complexity Acceptable Danger Critical Planned Total cost Actual Projects Enhance Maintain Risk? Return? Cost Utilization Health Apps Infra Active Planned
    20. 20. To guide smarter, business-led (technology) decisions <ul><li>Business decisions </li></ul><ul><ul><li>Delay inspections projects </li></ul></ul><ul><ul><li>Redirect resources to Salvage </li></ul></ul><ul><ul><li>What does Salvage need the most? </li></ul></ul><ul><ul><ul><li>Tactical </li></ul></ul></ul><ul><ul><ul><li>Strategic </li></ul></ul></ul>Claims Inspection Business units Accomplish functions Supported by application(s) Appraise it Reimburse it Collect it Payment Salvage Cost Quality Complexity Planned Total cost Actual Projects Enhance Maintain Risk? Return? Cost Utilization Health Apps Infra Active Planned <ul><li>IT – technology guidance </li></ul><ul><ul><li>New mobile app and hardware </li></ul></ul><ul><ul><li>Hardware $ and project team </li></ul></ul><ul><ul><li>Server capacity </li></ul></ul><ul><ul><ul><li>Upgrade for short term </li></ul></ul></ul><ul><ul><ul><li>New EFT-based app long term </li></ul></ul></ul>
    21. 21. Summary <ul><li>Business change outpaces IT change </li></ul><ul><ul><li>Adapt or perish – speed means survival </li></ul></ul><ul><li>We need to adapt to new perspectives on IT modernization </li></ul><ul><ul><li>Roller-skating elephants are mobile, but they are not fast or nimble </li></ul></ul><ul><li>Your new approach to modernization </li></ul><ul><ul><li>Develops self-awareness of your entire portfolio </li></ul></ul><ul><ul><li>Creates transparency in terms of business function / process </li></ul></ul><ul><ul><li>Uses transparency to inform and educate business leaders </li></ul></ul><ul><ul><li>Crafts joint modernization plans that optimize value-streams </li></ul></ul><ul><ul><li>Leverages automation / portfolio views from many informational sources </li></ul></ul>
    22. 22. Thank you <ul><li>Phil Murphy </li></ul><ul><ul><li>+1 561.748.4168 </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>www.forrester.com </li></ul></ul>
    23. 23. Software AG’s Process-driven IT Modernization 29th March 2011 Guido Falkenberg VP Enterprise Transaction Systems
    24. 24. The Process-oriented Approach to Modernization Eliminating Inefficiencies in your Value Streams Enterprise Business Processes Application Portfolio Time Costs Quality September 6, 2011 | Process-driven IT Modernization | Manual Processes End-User Acceptance Redundant Process Logic Siloed Applications No real-time Error-prone data entries
    25. 25. Software AG’s Process-driven IT Modernization Solution Transforms Core Business Applications in manageable steps, improves processes intelligently and leverages new technologies — towards the goal of business process excellence.” September 6, 2011 | Process-driven IT Modernization |
    26. 26. Discovery & Assessment Process Discovery Application Discovery <ul><li>Extract Process Performance Data from Applications </li></ul><ul><li>Analyze and Vizualize KPI’s </li></ul><ul><li>Automatically analyze Applications </li></ul><ul><li>Identify Assets and Dependencies </li></ul>September 6, 2011 | Process-driven IT Modernization | Enterprise Architecture Management Business Processes and Functions Application Portfolio Infrastructure
    27. 27. Modernization Roadmap Enterprise Architecture Management Value, Costs, Risks, Technical Capabilities Modernization Roadmap Planning & Governance of Modernization Projects From as-is to to-be Architecture Processes Integration Application Platform  September 6, 2011 | Process-driven IT Modernization | 1 2 3    
    28. 28. IT Modernization – Enabling Technologies September 6, 2011 | Process-driven IT Modernization | Business Process Enterprise Architecture Modernization Roadmap Business Process Improve workflows by modeling, automation & monitoring. Integration Seamlessly share data, master data and application functionality. Application Simplify application maintainability, flexibility and accessibility. Platform Optimize operational efficiency of existing platforms or rehost on new platforms. 1 2 3
    29. 29. IT Modernization Enabler – Platform Mainframe Optimization Platform Rehosting September 6, 2011 | Process-driven IT Modernization | Storage Mainframe Linux UNIX Windows Optimizing the performance and efficiency of your existing mainframe platforms. Move the IT workload and applications to the most appropriate platform achieving better operational efficiency and IT standardization.
    30. 30. IT Modernization Enabler – Application Application Reengineering September 6, 2011 | Process-driven IT Modernization | Web/AJAX Enablement Green Screen Transformation Easily Web-enable green screens, boost end-user productivity, improve application adaptability and maintainability. Transform transactional processing and business logic into reusable application services.
    31. 31. IT Modernization Enabler – Integration Application and Partner Integration Mainframe Integration Data Integration SaaS Packaged Applications COBOL CICS 3270 DB2 Adabas Natural PL/1 IMS MQ B2B RDBMS Data Warehouse September 6, 2011 | Process-driven IT Modernization | Master Data Batch Mainframe SOA Flexibly integrate your custom applications and databases with SOA, BPM, B2B, cloud and packaged applications, as well as with Business Intelligence environments enabling real-time connectivity.
    32. 32. IT Modernization Enabler – Business Processes Business Process Modeling Business Process Automation and Rule Integration Business Process Monitoring September 6, 2011 | Process-driven IT Modernization | Employ powerful business process capabilities using ARIS and webMethods to model, automate and monitor your human-, document- and system-centric processes.
    33. 33. Customer Success Stories New Process „Order Quality Service“ available in over 700 PoS locations lead to fewer lens rejection, reduced cost and improved customer service. Eliminated redundant claim-handling in applications by providing a common claim-process in a BPM environment. Reduced administration processing time from days to hours after migrating 75 application workflows into a Web/BPM system. Realized cost saving of over $1M annually by eliminating paper-based processes and the establishment of a flexible SOA-based platform with rich connectivity. September 6, 2011 | Process-driven IT Modernization |
    34. 34. Creating a Modernization Path with Software AG <ul><li>Process-Driven IT Modernization delivers a holistic roadmap for continuous adaptability </li></ul><ul><li>Complete solution of market-leading technologies and proven methodology </li></ul><ul><li>Achieve Business Process Excellence by focusing IT improvements on the key processes </li></ul>September 6, 2011 | Process-driven IT Modernization |
    35. 35. Visit us @ www.itmodernization.com <ul><ul><li>Information Resources </li></ul></ul><ul><ul><li>Customer Stories </li></ul></ul><ul><ul><li>Whitepaper </li></ul></ul><ul><ul><li>Free eBooks </li></ul></ul><ul><ul><li>Online Videos </li></ul></ul><ul><ul><li>Events </li></ul></ul><ul><ul><li>ProcessWorld 2011 </li></ul></ul>Launching February 2011 September 6, 2011 | Process-driven IT Modernization |
    36. 36. Thank You! Guido Falkenberg [email_address] http://www.softwareag.com/corporate/solutions/itmodernization

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