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Complete Guide to Technology Modernisation
Businesses today realize that technology is a crucial enabler for success in the marketplace. We can all see how the world is racing headlong in the streams of digital-first culture. Enterprises are constantly trying to ride this stormy wave of digitalization. Only the most virtuosic teams can stay on top: those who build the technology modernization strategy correctly and implement innovative technologies accordingly. Those who know the latest technologies understand the long-term benefits of investing in IT modernization.
As organizations grow and evolve, their software and business applications may need to adapt to new realities. Technical modernization decisions can be challenging due to the significant capital and resource investments involved. But adopting reliable technology is essential for staying competitive, relevant, and flexible. Market leaders understand that technology modernisation brings long-term benefits such as increased productivity, enriched customer experience, and overall company success.
Our guide provides a roadmap to create a core IT modernization strategy and key steps to transition business processes to the digital realm. Let Digicode help you navigate this dynamic process, overcome challenges, and build a strong foundation for technical modernization decisions.
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What Is IT Modernization?
Every business uses technology to perform an operational function or to serve customers. When this technology can satisfy all the business needs, it can be called “successful tech” support to help the company for a good time. But suppose this technology, for some reason, is either unable to satisfy all business needs as before or creates hurdles in the business functioning, then the need to upgrade technology arises.
In simple words, Tech Modernization is “The Adoption of New Technology and improved Methods for Doing Things Better”.
It incorporates new and improved tech systems for delivering goods/services and integrates new ideas and working methods. The Modernization process replaces existing products or processes with new technology and enhanced approaches to better serve the company’s future needs.
Significant Benefits of Tech Modernization
The companies will benefit from Modernization regarding operational efficiency and other parameters to ensure this initiative is worthy. You will experience plenty long terms and short-term benefits from Modernization.
Find out the benefits of technical modernization:
- Successfully fulfill market expectations and needs.
- Gain the edge over competitors that holds competition in the marketplace.
- A more agile and flexible system that adjusts to changing market requirements and user expectations.
- Generate more savings through efficiency and cost-effective process operation.
- Reduce the risk of exposure related to using old & less secure technologies.
- Reduced workforce as technology requires a bare minimum of human support after installation.
- Increased employee satisfaction with better software, which is much more comfortable to use and productive.
- More operational flexibility, especially relating to changing marketplace
Technology Challenges Faced by Businesses Due To Delay In Modernization
Businesses with old technology face multiple limitations in customer service and daily operations. The legacy technology lacked the feature that allowed a delegation of authority if needed. For example, e.g., In a company, a specific business process requires the director’s physical presence in the office to authorize certain transactions. Now, if the director is unavailable, the whole business process comes to a standstill. Thus, the lack of features and modern flexibility may bring inefficiency in business operations.
With technology modernization, companies can ensure seamless integration for operational ease, ensuring an integrated tech system.
Being competitive in the marketplace requires not only meeting but exceeding customer expectations. The danger of someone disrupting your marketplace is always persistent with old technology. Lack of tech may result in inefficient processes and unfulfilled customer needs.
Complete Guide to Tech Modernization includes answers to the following:
- What are the different types of Tech Modernization?
- What are the benefits of Tech Modernization?
- What are the challenges faced while doing legacy system Modernization?
- Procedure/ Model of Technology Modernization
- 5 Success Factors for Modernizing IT Technology
- Tips for Choosing The Right Technology Modernization Partner
3. Employee Convenience
Times are changing rapidly, and fewer people are inclined to tolerate a bad operational experience in the workplace. Employees do not want to be challenged unnecessarily and expect the company to adapt to the latest technology that reduces unnecessary operations to get specific results. A functional modern technology in the system increases employee satisfaction considerably.
4. Customer Experience
Old technology affects customer experience the most. Legacy tech is invariably aligned to aging processes, thus needing more sync to new business realities.
We have seen a decrease in customer support queries as customers understand how to quickly use products/services and find their answers with the Modernization of technology.
Common Reasons For The Delay In IT Modernization
Business Modernization of technology allows companies to stand out in the market and grab a larger share, but many still need to seize this opportunity.
Here’s a list of a few major reasons for the companies to delay the legacy system Modernization process:
- The companies’ conservative approach toward their product or system is the most common reason. There is inherent inertia to making the change.
- The modernization of the existing technology system invites additional cost and risk.
- Businesses with functional technology restrain reinvesting after investing significantly in the technology.
- If the existing technology works just fine according to the business needs, there is a tendency to delay the Modernization of legacy systems.
- The fear of disrupting the current system and building on new technology.
- If the new technology is unsuccessful, avoid the risk of bad publicity in the domain.
- The low capital expenditure budget for customizing the system, support, maintenance, internal IT team, hardware servers, workstation, and training to use this technology.
- If the company built the technology in-house, the higher management would be conservative about the developed technology, as they would have better control over the system.
- Third-party technology is often seen as a high-risk factor.
Technology Modernization Approach
Leading businesses use tech Modernization to improve their processes, review their business model, create new offerings, and deliver better customer service. You can do things differently and better when you check your business process and audit your Modernization system.
You can follow various paths to find a new solution for the technology you want to replace. There exist two broad types of technology modernization methods as follows:
For businesses willing to transform, there always exists a dilemma if there is a better technology out in the market than what you have that will ultimately cover your changing needs today and tomorrow. This technology must also be reasonably priced and be around for a while. Understanding what your technology lacks and replacing it with a better and newer option is the easiest way to Modernize technology. Buying out the latest modern technology will sail you through this process.
However, this type of modernization of technology can need more end-to-end efficiency. This technology modernization strategy will only be able to cover part of your system and therefore requires more efficiency.
By building, you not only start with the replacement of old technology but review the inventory of the company’s business process thoroughly. It allows you to plan a detailed strategy addressing the underlying issues that are not necessarily in only one system.
When merged with new technology, the build method will integrate the latest software and business process to work well in multiple sections.
Building new customized technology with modern techniques will undoubtedly create a better outcome for the business. Technology Modernisation must follow business needs, which must serve the company better. Building your new technology from the ground up is way more efficient than buying the latest technology.
6 Reasons for Technology Modernization
Modernization of technology is a capital and resource-intensive decision. Many companies need to make Modernization decisions at the right time. Companies need to have clear indicators and direction to move toward Modernization.
The right time for technical modernization is when companies realize that their technology is hampering their growth or losing market share
The following scenarios will act as a green signal for the companies to move toward Modernization:
Customer Expectation Has Changed
If the company faces challenges in attracting new customers, the reason might be a bad customer experience. As the market grows, customer preferences change, and old tech may need to meet evolving customer expectations.
The company struggles to grow with the product due to the challenge from a purely technological perspective. For e.g., The company has a software product functioning accurately with a good user experience. However, it cannot be installed on all new computers as the product technology uses some libraries that do not support new operating systems.
Old Business Model
Your business model is outdated primarily because people don’t want to use it anymore.
For e.g., You still follow a licensed-based model for selling your tech and require a high initial investment commitment. But with the availability of technology, customers in your markets have switched to subscription-based models. Thus, you may face a competitive threat due to changes in customer preferences.
Competitors with New Technology
The company had a stable market share, but now the company sees a declining market share due to an upcoming new competitor disrupting the marketplace with better solutions. This competitor offers products or services far different from existing ones, primarily fetching the customer’s attention.
In the hospitality industry, hotels have been developing technology and implementing new business models for a long time. By introducing a new business model supported by robust tech, AirBnB has wholly changed the hospitality landscape.
Blockbuster used to be on every block across the USA but with the availability of the internet & new content-serving platform like Netflix, the way customers consumed content changed.
Stronger Product In The Market
Your technology’s major USP (Unique Selling Proposition) is no longer a priority for your customers due to the availability of the newer solution. Customers now use a more robust product better suited to changing market needs. You should upgrade your technology quickly before your competitor squishes you out of the marketplace.
Even in a shrinking market, where the market share is fairly constant, a lack of technical modernization can result in competition serving the business needs more effectively, resulting in a loss of market share.
The reasons for tech meant for internal use could be entirely the same; the latest technology might allow your competitors to be faster and more efficient than you. If you fail to modernize, the changing demand and supply gap can lead you to suffer significant challenges with old technology.
Technology Modernization Process
Technical modernization is a capital and resource-intensive decision, and many companies fail to take Modernization decisions at the right time. Companies need to have clear indicators and direction to move toward Modernization.
Follow the steps mentioned below to achieve your technology modernisation objectives:
The traditional functioning of an organization forces it to keep doing things in a certain way. These processes often are aligned with old tech, but with changing times, they might have become redundant. An internal audit of current processes helps unearth inefficiencies and showcases the scope for improvement.
Internal process audit becomes the first step to tech Modernization, improving understanding of processes from a business standpoint. An audit is the most important step to finding loopholes and uncovering hidden opportunities.
Streamlining Business Process
The next step to Modernization is identifying how the existing business process can be improved. Recognizing the connection between different processes, finding inter-dependencies, and streamlining to find ways to make processes faster and improve quality.
Every business process is unique, so identifying future improvement areas is always challenging. Looking at how all businesses identify the poor strategies for improvements. A verified business process plan must be created from today’s state to the desired shape.
Gradual Change and Initiate the Change
After spending a substantial amount of money and time, a failed attempt to replace the old clunky system with a new efficient system is a big disappointment. Hence, the approach of destroying and building new technology is not suggested to companies. The longer route of gradual change enables you to attain a successful replacement rather than a complete replacement approach. This approach allows you to find immediate improvement areas and what you can improve over time.
Change Initiation: Gradually migrate customers to the new system over 6-36 months to avoid high risk and expenses. Follow these steps for smooth modernization without hassles or unforeseen risks.
Consider Digicode Your Trusted Partner
Digicode is your trusted partner for technology modernization. Our unique approach allows companies to modernize technology without any surprises. We specialize in creating technology modernisation strategies, website performance optimization, and implementing innovative solutions that help businesses stay ahead of time. We also provide cutting-edge UI UX modernization services and seamless cloud migration services s and solutions to revolutionize your business technology.
We have worked on multiple tech modernization projects, providing flexible models that enable seamless migration from old platforms to new ones while protecting mission-critical processes and avoiding downtime.
For example, one of the successful technology modernization examples we have completed is the modernization of a 25-year-old electronic data recording software for a Texas-based healthcare company.
Our team studied customers’ business needs and understood the as-is processes and interdependencies. We planned and executed a gradual feature upgrade of the existing software. Our experts designed the system architecture to take the system off the legacy mode in 18 months.
Instead of replacing one piece of software with another, our team modernized the whole business process.
This approach allowed the client to switch from manual and labor-intensive to automated processes, reducing staff by more than 50% and supporting their business growth. The new software helped the client save significant money because of reduced labor costs and the ability to perform better with enhanced results and business goals.
Our portfolio and cases showcase the solutions for modernizing the IT technology we have delivered and the results we have achieved for our clients.
If you are wondering what IT modernization is and how it can benefit your business, we are here to help. Contact us to learn more about technology modernization strategy and how we can help modernize technology in your company.
If your business technology is obsolete or unable to satisfy the customer needs, you need Modernization. Technology modernisation is always on the horizon; if you still need to do it, you will need to do it sooner or later.
IT Modernization allows your business to scale, find a new product, increase customers, and grow market share. We hope this detailed article has answered most of your questions and given you a broad idea about technology Modernization.
So, if you are looking forward to modernizing IT in your business with the latest technologies in the market, now is the time to act!
Do you still have concerns about new technologies? Before you embrace new technology, take our quick tech assessment and receive a FREE customized expert report. If you want to modernise tech systems and processes, feel free to connect with our modernization experts.
What is IT modernization?
IT modernization is the process of updating legacy systems, software, and processes to newer and more efficient technology solutions to meet the changing needs of businesses. It can include implementing cloud computing, virtualization, and automation and utilizing big data, data analytics, artificial intelligence, the Internet of Things (IoT), and machine learning to drive business growth.
Why does a business need IT modernization?
IT modernization is essential for businesses to stay competitive and relevant in today’s market. Companies can increase productivity, improve customer experience, and achieve success by adopting reliable technology solutions.
What is an example of IT modernization?
A great example of IT modernization is when a company modernizes technology by transitioning from manual and labor-intensive processes to automated ones, using technologies like artificial intelligence and machine learning. Another example is modernizing a company’s legacy systems by migrating to cloud-based solutions and utilizing agile methodology to streamline processes.
How do you build a core IT modernization strategy?