What is Legacy Modernization - and Do You Need It?
The Office of Financial Management in Washington is the owner of the AFRS system, which was implemented more than 30 years ago and continues to serve as the system of record for accounting transactions across the enterprise.?
Staff at every agency use AFRS; it’s still doing its job. But the agency understands that the AFRS solution is at end-of-life and that they are missing out on tremendous opportunities for greater efficiency and savings. Today, they are working to replace AFRS with a modern solution that will support the state’s expanding requirements.?
Similar situations play themselves out every day in agencies across the state. Systems that once instigated growth have now reached—or are approaching—their maturity points. Soon, they’ll no longer be useful. Worse, some will actively harm your organization, putting important data at risk or costing your workers time as they continue to deliver services using an aging—and increasingly sluggish—system.
What is a Legacy System?
A legacy system refers to outdated infrastructure or an outdated application or process.?All?systems eventually become legacy systems—clinging to them can hold back growth and create inefficiencies.?
But not modernizing them in the right way can be equally damaging. It’s important to approach system modernization with care, in order to determine the best way to bring the system into alignment with your organization’s current needs.
Why Modernize?
Your legacy system is familiar. It may still be performing its function admirably. But once it becomes a burden to maintain—financially or operationally—or keeps you from implementing the kinds of innovations you need to grow, it’s time to reassess its role in your agency.
Systems that have reached maturity include those that:
Modernizing a key system can have far-reaching—and long-lasting—benefits. A modernized system can help your organization:
Where—and How—To Begin?
Change is the only constant: new systems and new workflows are simply part of your work.?
If your organization has been around for a while, begin by recognizing that all of your systems are probably bordering on maturity and that you will need to bring every one of them up to date.?
First Steps
Document legacy systems thoroughly?before?you think about modernizing. Ancient systems with poor documentation are much harder to migrate because data schemas are unknown, functionality is unknown, and data may be unrecoverable. This can add time, complexity, and angst to any system modernization.
Decide ahead of time if you have the stomach for Agile or if you need to stick with Waterfall. You either need?all?your requirements documented ahead of the project start or you’ll have to make a serious investment and commitment to Agile methods before the project begins. There is no way around this.
Don’t skip the feasibility study.?It will help reveal all the gaps and opportunities and set you up with realistic expectations for cost and timeline.?
Start with the process—not?the technology.?Don’t think about your modernization project as an IT project; it’s a business project that is, fortunately, landing on a modern platform.
Involve your stakeholders early and often.?Listen to what they say, capture what they really mean, and incorporate as much of their feedback as you can.
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Which Approach?
Once you’re ready to explore other possibilities for a system, it’s time to consider the best approach. In the change management world, we call the options for application modernization the “Seven Rs.”
Retire
Your team may decide that the system, on its own, is redundant and no longer needed. If this is the case, it’s likely that you have alternate systems already in place where you can migrate existing data or users. This option may require some work to close or optimize an operational gap.
Retain
Sometimes, a team may determine that a system in its current iteration is serviceable for the time being. In this case, you will simply keep and maintain the current system. This may be a good option if the system in question is a low or mid-priority asset or if a major change, such as a merger or a leadership turnover, is on the horizon. Be aware that choosing to retain the system will require a team to re-engage the question down the road and that cumbersome, outdated systems can accrue significant costs over time.?
Rehost
Rehosting a system means that you migrate the data or other elements of your current system into a new environment without altering code, changing the functionality or features, or recompiling data. Also called “lift and shift,” this approach is used, for instance, to move an email system to the cloud. Be aware that although this approach will require less operational disruption, it does not take full advantage of options and tools available in the new system’s native format.?
Re-platform
Like a rehosted system, a replatformed system moves elements from a legacy system to a new home. The replatform approach calls for a minimal number of code changes to adapt it to the new platform while retaining the functions and features of the legacy system. This is a minimal-intervention approach that allows you to continue to take advantage of your investment in the legacy system.?
Re-architect
Changing the architecture of your system is a step beyond replatforming. Re-architecting a system often means using new technologies to make changes on the back end by optimizing code for better performance while retaining front-end functionality. This is less disruptive than a complete rebuild but leverages new capabilities.
Rebuild
The longest, most intense option, a rebuild is a complete restructuring of the current system. Though it takes the longest—and costs the most—of any of the other options, it is also the most beneficial, often moving clunky, site-based systems fully to the cloud. The result is a flexible, higher-performing, lower-cost system.?
Replace
This option calls for scrapping the existing system—wholesale—and replacing it with a modernized version to allow for updated processes and compliance with new requirements. For instance, you may move an email or invoicing system to a cloud-based application. Bear in mind that this option will require a significant amount of user training and a ramp-up period while users are learning and getting accustomed to the new system.
Conclusion
Modernizing your agency’s systems requires an intentional, 360-degree process that includes assessment, development, implementation, and integration of modern technologies that make the most of your IT resources. It is not for the faint of heart—nor can it be an afterthought. However, the results are well worth the effort.?
To get excellent results, we recommend that you partner with experts (like us) who have completed multiple successful legacy system modernization projects across diverse industries and geographies.?
Building on more than 20 years of change enablement and modernization experience, FirstRule can help your organization modernize legacy applications, transform your IT operations, and improve your business processes.
We follow a proven approach—involving people, process, and technology—to solve challenges, including working with you to understand your needs and creating solutions that are positioned to deliver value and quantifiable outcomes. Combining the right tools, techniques, and expertise, we can help ensure your organization is positioned for the future, and for success. Learn more about our?legacy application modernization services, methodology, and success stories at?firstrule.com.