Digital disruptions are imposing greater demands on IT systems and enterprises. Enterprises must consider a global end-to-end approach for modernizing, maintaining, and managing business technologies. Now that unified communications (UC) is part of IT, modernizing IT will influence UC. So the question becomes, if you have internal UC systems, should the UC systems be changed when IT looks to modernize the other applications?
For both those in and out of IT, a McKinsey & Company article titled "Modernizing IT for a digital era " may prove enlightening around the topic of modernizing IT functions and systems.
Those taking traditional approaches to modernization encounter fewer risks. When there is a problem on a small software-development project, the faulty processes can be contained and resolved before they become widespread issues. Changing by degrees delivers short-term improvements faster. For example, a change in a small service or product line produces quick benefits in customer interfaces or tasks associated with systems operations and maintenance.
However, taking small steps at a time can also limit an enterprise's growth and competitive position. Technology teams within different parts of the IT organization may independently (without consulting or collaborating with other parts) pursue discrete systems involving their own areas of competence, expertise, or internal business clients. They can create silos of solutions, which then breed more complexity into the overall IT environment, potentially producing redundant systems and processes. When an enterprise pursues digital transformation initiatives, the weaknesses in the traditional approach and IT management systems are usually exposed as a surprise. Customers will experience missing data links, slow response times or processing speeds, and unavailable products and services.
The end-to-end approach is an effective means for creating and supporting viable digital businesses (see below chart). Executives must divide the change process into three steps:
Some enterprises attack modernization by pursuing the identified changes separately and in isolation from one another. This is often in the context of a business unit's request for a new technology, feature, or function. It is uncommon that enterprises take a global view of the changes and the relationships that exist. The three steps must be approached in a systematic effort, spanning across all business units and functions. Input from both IT professionals and business executives are necessary if the changes are to be beneficial and not conflict.
A second article from McKinsey, "Two ways to modernize IT systems for the digital era," provides insights into two paths to take. The two-speed approach produces quick iterations and launches of customer facing applications. This first approach ensures the stability of the back-end systems that support foundational transactions and record keeping.
Enterprises should prioritize two or three high-value customer experiences. Mobility applications come to mind. They create a dedicated team with digital skills to produce a new service for that experience and bring it rapidly to market. The other part of the IT architecture team, operating at a slower pace, continues with their core functions. These functions should include planning and designing the longer-term strategic enterprise architecture that satisfies the enterprise's operational needs. This delivers the stability and maintenance of the current systems and managing day-to-day service delivery.
A greenfield approach replaces the core legacy IT systems. This approach is selected when an enterprise requires a complete transformation to the existing legacy systems because desired new functions cannot be supported. Implementing this approach successfully will require more lead time, so do not obligate to a rapid deployment.
There are a number of choices to make around implementing the greenfield approach. The enterprise can start from scratch, then select the best-of-breed hardware and software products and integrate them itself. Alternately, a bundled, pre-integrated suite can be implemented.
It is critical for enterprises to grasp the full capabilities of the acquired tools and packages. They must commit to redesigning their software development and delivery processes from end-to-end. The design should adhere to industry best practices and common IT standards that produce sustainable, intuitive ways that address enterprise and customer needs. Simply adapting the software packages they acquire is not good enough.
The greenfield approach can require substantial capital and liquidity, since initial investments can be millions of dollars depending on the scale and scope of the IT organization. A less capital intensive approach is to subscribe to infrastructures as a service (IaaS) or platform as a service (PaaS). Further, if modernizing unified communications, consider UCaaS.
IT must have long-term C-level support to sustain the strategic and financial commitments of the greenfield approach. C-level executives must have enough understanding of the potential business benefits to ensure that the greenfield effort is not considered as a side project being led by IT and it is getting the attention it needs.
C-level executives must carefully think through the enterprise's capabilities. A question to consider is, is there enough skilled talent and other resources available to pursue digital delivery of software? If not, should consultants be retained? Should new training be provided before the project commences? A greenfield implementation can look like an attractive fresh start but requires internal support and experience that may not exist in an organization's current structure.
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