Modernizing your legacy applications: which order will you choose?

Organizations looking to modernize their legacy environments need to carefully consider the right approach. Modernizing everything at once is often not feasible due to limited staffing and is risky, especially since many applications play a vital role in critical business processes. That’s why organizations typically choose to modernize legacy applications in a specific order. But what is the right order for modernizing legacy applications and how do you determine it?

Due to changing market conditions and rising customer expectations, many organizations face the challenge of modernizing their legacy environments in the coming years. To manage this process effectively and choose the right approach, the first step is to create a full inventory of all legacy applications within the organization. Next, the current state and business value of each application must be assessed. Once that’s clear, applications can be prioritized based on their business value and the modernization process can begin.

1. Identify all legacy applications through an audit

The first step in the process is to inventory all legacy applications present in the IT environment. For each application, document not only its functionality, dependencies, and integrations with other systems, but also license costs, maintenance contracts, version number, and how data is stored. An audit can also uncover hidden applications and shadow IT. By gathering this information, you establish a clear starting point from which you can later determine the right order for modernization.

2. Assess the current state of each application

In this step, you assess each legacy application based on technical criteria using a structured scoring model. Key factors include maintainability, compatibility, performance, security, and compliance.

Maintainability looks at how often the application requires updates and what the associated costs are. Compatibility assesses how well the application integrates with modern systems. For performance, speed and capacity are the main indicators. Security is also critical – are there any vulnerabilities within the application? And don’t forget compliance: does the application meet current laws and regulations?

In addition to evaluating these five areas, it is highly recommended to use automated code analysis tools to assess code quality. This helps identify which parts of the code need to be partially or completely rewritten.

3. Determine the business value of each application

The third step in the process is to assess the business value of each application. A good starting point is to organize interviews with stakeholders across the organization. This provides insight into how the application is being used and what value it adds to day-to-day operations. Also consider the user experience. An outdated or slow interface can impact productivity, which over time can become a significant cost for the organization.

When evaluating business value, it’s important to look ahead as well. To what extent is the application currently, and in the future, still capable of contributing to profitability?

By using a standardized evaluation framework, such as the Application Portfolio Management (APM) model, organizations can ensure a consistent and structured approach to rating the value of legacy applications.

4. Determine the modernization sequence

In the final step, based on business value, complexity, and risk, you rank all legacy applications. Generally, it’s wise to start with the applications that are most critical and offer the greatest potential for the organization. When ranking applications for modernization, you might also want to consider additional factors such as quick wins, dependencies, risk diversification, and available IT expertise.

When it comes to the actual automation process, keep in mind your IT team’s capacity and the potential impact on daily operations. It may be wise to begin with a pilot project and, based on the lessons learned, initiate a large-scale modernization project.

A good approach improves competitive position

Modernizing legacy applications is a necessary, yet complex process for organizations aiming to innovate and compete in the digital age. By choosing a methodical approach when inventorying, assessing, and prioritizing applications, organizations can modernize their legacy systems in a well-considered manner. This approach should also be flexible enough to adapt to changing business needs and technological developments.

When modernizing, it is recommended to start with applications that offer the most business value and carry the least risk. This allows the organization to gain experience, making it easier to modernize more challenging legacy applications later on. Ultimately, the step-by-step plan outlined in this article leads to greater efficiency, better customer experiences, and a stronger competitive position.

Need help modernizing your legacy environment?

Want to accelerate your digital transformation and successfully modernize legacy applications? At NetRom Software, we’re ready to support you with over 25 years of experience and a proven approach. Our team of experts is here to assist you in planning, executing, and optimizing your modernization process. Contact us today and discover how we can enhance your organization’s profitability in this digital era.