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Benefits of Software systems
modernization over their replacement
Michal Petřík, Head of Software Development July 2nd, 2020
2
Contents
1. Who we are
2. The challenges
3. Choosing the right approach
4. Case study
Who We Are
4
The State of Art Software Engineering
20+ years in
the business
and growing
Preferred employer of extraordinary talents
› Supporting start-ups, student competitions
› Computer science education for kids
Unparalleled collaboration with Top CompSci
Universities
› Five software engineering focused modules
› Applied science (research groups and grants)
Continuously learning
from the best
5
About Me
Michal Petřík
› Software Engineer
› Fullstack Developer
› Team Leader / Project / Delivery Manager
› Head of Software Development at Profinit
› 15+ Years Experience With Software Systems Modernization
Contact:
mpetrik@profinit.eu
www.linkedin.com/in/mpetrik-41442895
@Profinit_SW
Typical challenges
Typical Challenges
Typical Challenges
9
Typical Challenges
Poor Digital Business Support
− Systems lacking support for new business models or channels
Changing Requirements
− Systems not fit-for-purpose anymore, poor UX, …
High Pace of Change
− Systems being slow to change, risky and costly to change
Compliance Risks
− Aging technologies, unsupported platforms, skills shortage
Maintenance Costs
− Systems with huge technical debt, poor code quality
How has
it happened…?
11
How Has It Happened…?
› Users are in 7 countries now | system has been designed for 1
› Business has grown | system has not
› Requirements have shifted | system has not
› Required development capacity was 10 FTEs | now it is 50 FTEs
› Technical debt used to be acceptable | now imposes bussines risks
Why Has It Happened…?
… a lot of "harmless"
decisions along the way…
Time to replace?
14
Six Key Drivers
Demand
(Business)
Supply
(IT)
Fit Value Agility Cost Complexity Risk
Digital Business Support
Changing Requirements
Higher Pace of Change
Technical Debt
Aging Technology
Time, Cost & Risk of Change
Unsupported Platforms
Skills Shortage
15
The Root Cause
Fit Value Agility Cost Complexity Risk
Functionality Architecture Technology
Demand
(Business)
Supply
(IT)
Continuous Systems Modernization
…why bother and not just replace?
› Cost, Risk and Impact?
Rip and replace whole systems:
Too costly, risky, time-consuming; high impact to the business
› Business Cannot Wait
We cannot wait for everything to be transformed or modernized
› No-one Can Predict Future
It is hard to predict and design services upfront
Continuous delivery requires continuous modernization | even new systems
17
Are We Talking About
Monolithic Systems?
18
Are We Talking About
Monolithic Systems?
Where does it end?
19
Continuous Systems Modernization
The key is to identify friction points and modernize them
20
Continuous Systems Modernization
21
Continuous Systems Modernization
New Systems Become Legacy Too
... simply said: that assumption is absolutely wrong
 new systems need to be continuously modernized too
… unless you want to have the same problem every few years
"We are going to have a new system, therefore no further
investments."
 Fit, Value, Agility  Cost, Complexity, Risk
Year 3 Year 5
Use Case
24
BNP Paribas Wings Core System
› Core non-life insurance system for 3 countries
› Hard to replace but also hard to maintain
› Two approaches applied:
– Profinit‘s Takeover methodology
– Continuous modernization
2012
Poor system quality
2-3/2013
System assessment
3-7/2013
Transition to Profinit
7/2013
Full service
2016
Rollout to 4 new countries
4/2020
Engaging new countries
Summary
Summary
› Think twice before ripping out and replacing the whole system
› Continuous modernization offers a lot more options (safer/faster)
› How to modernize?
› Find the real root causes (friction points)
› Choose the best strategy for the particular case
› Plan  Execute  Evaluate  Repeat
› Modernize continuously (make sure everybody understands it)
Questions?
Profinit EU, s.r.o.
Tychonova 2, 160 00 Prague 6 | Phone + 420 224 316 016
Web
www.profinit.eu
LinkedIn
linkedin.com/company/profinit
Twitter
twitter.com/Profinit_EU
Facebook
facebook.com/Profinit.EU
Youtube
Profinit EU
Thank you
for your attention

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Profinit Webinar: Benefits of Software Systems Modernization over their Replacement

  • 1. Benefits of Software systems modernization over their replacement Michal Petřík, Head of Software Development July 2nd, 2020
  • 2. 2 Contents 1. Who we are 2. The challenges 3. Choosing the right approach 4. Case study
  • 4. 4 The State of Art Software Engineering 20+ years in the business and growing Preferred employer of extraordinary talents › Supporting start-ups, student competitions › Computer science education for kids Unparalleled collaboration with Top CompSci Universities › Five software engineering focused modules › Applied science (research groups and grants) Continuously learning from the best
  • 5. 5 About Me Michal Petřík › Software Engineer › Fullstack Developer › Team Leader / Project / Delivery Manager › Head of Software Development at Profinit › 15+ Years Experience With Software Systems Modernization Contact: mpetrik@profinit.eu www.linkedin.com/in/mpetrik-41442895 @Profinit_SW
  • 9. 9 Typical Challenges Poor Digital Business Support − Systems lacking support for new business models or channels Changing Requirements − Systems not fit-for-purpose anymore, poor UX, … High Pace of Change − Systems being slow to change, risky and costly to change Compliance Risks − Aging technologies, unsupported platforms, skills shortage Maintenance Costs − Systems with huge technical debt, poor code quality
  • 11. 11 How Has It Happened…? › Users are in 7 countries now | system has been designed for 1 › Business has grown | system has not › Requirements have shifted | system has not › Required development capacity was 10 FTEs | now it is 50 FTEs › Technical debt used to be acceptable | now imposes bussines risks
  • 12. Why Has It Happened…? … a lot of "harmless" decisions along the way…
  • 14. 14 Six Key Drivers Demand (Business) Supply (IT) Fit Value Agility Cost Complexity Risk Digital Business Support Changing Requirements Higher Pace of Change Technical Debt Aging Technology Time, Cost & Risk of Change Unsupported Platforms Skills Shortage
  • 15. 15 The Root Cause Fit Value Agility Cost Complexity Risk Functionality Architecture Technology Demand (Business) Supply (IT)
  • 16. Continuous Systems Modernization …why bother and not just replace? › Cost, Risk and Impact? Rip and replace whole systems: Too costly, risky, time-consuming; high impact to the business › Business Cannot Wait We cannot wait for everything to be transformed or modernized › No-one Can Predict Future It is hard to predict and design services upfront Continuous delivery requires continuous modernization | even new systems
  • 17. 17 Are We Talking About Monolithic Systems?
  • 18. 18 Are We Talking About Monolithic Systems? Where does it end?
  • 19. 19 Continuous Systems Modernization The key is to identify friction points and modernize them
  • 22. New Systems Become Legacy Too ... simply said: that assumption is absolutely wrong  new systems need to be continuously modernized too … unless you want to have the same problem every few years "We are going to have a new system, therefore no further investments."  Fit, Value, Agility  Cost, Complexity, Risk Year 3 Year 5
  • 24. 24 BNP Paribas Wings Core System › Core non-life insurance system for 3 countries › Hard to replace but also hard to maintain › Two approaches applied: – Profinit‘s Takeover methodology – Continuous modernization 2012 Poor system quality 2-3/2013 System assessment 3-7/2013 Transition to Profinit 7/2013 Full service 2016 Rollout to 4 new countries 4/2020 Engaging new countries
  • 26. Summary › Think twice before ripping out and replacing the whole system › Continuous modernization offers a lot more options (safer/faster) › How to modernize? › Find the real root causes (friction points) › Choose the best strategy for the particular case › Plan  Execute  Evaluate  Repeat › Modernize continuously (make sure everybody understands it)
  • 28. Profinit EU, s.r.o. Tychonova 2, 160 00 Prague 6 | Phone + 420 224 316 016 Web www.profinit.eu LinkedIn linkedin.com/company/profinit Twitter twitter.com/Profinit_EU Facebook facebook.com/Profinit.EU Youtube Profinit EU Thank you for your attention