IT Modernization: Expectations Vs. Reality | ZIVARO

People often talk about the benefits of IT modernization. But what happens when you upgrade apps and infrastructure? Here’s what […]

By zivaro|June 17, 2021|0 Comments

People often talk about the benefits of IT modernization. But what happens when you upgrade apps and infrastructure? Here’s what you can expect.

It’s more important than ever before to equip businesses with the digital tools they need to succeed—which is why many companies today are moving forward with ambitious IT modernization goals. 

It’s commonly believed that upgrading to the latest and greatest applications and cloud-based infrastructure is the key to getting ahead of the competition.

But like any big business decision, there are benefits and challenges associated with IT modernization. For example, faster work systems and higher profit margins are possible, but what happens if employees debate or reject the merit of making changes?

Here’s what you can expect—both the good and the bad—from your IT modernization.

What Is IT Modernization?

IT modernization is the process of upgrading antiquated technology in your business.

You can break modernization into three categories:

  • Application modernization. Moving towards flexible, cloud-first apps that are easy to maintain and upgrade. 
  • Infrastrastructure modernization. Upgrading existing legacy infrastructure to meet the needs of in-house applications.
  • Workplace modernization. Making a seamless transition to hybrid or digital business models while giving employees the tools to collaborate and thrive.

By moving away from outdated software and hardware, businesses can increase efficiency, effectiveness, and even workplace culture.

What Are Some Examples of Modernization?

  • Upgrading to faster, cloud-based computing applications
  • Upgrading to cloud-based platforms and CRMs 
  • Upgrading infrastructure to support existing platforms or upgrading infrastructure to support new applications
  • Upgrading collaboration tools

Accommodating new hybrid or work-from-home digital business models

What Is Digital Modernization?

Digital modernization is similar to IT modernization (and often used interchangeably). The significant difference, though, is that digital modernization aims to meet your specific industry needs. 

Sometimes called ‘business systems modernization,’ DM looks at how upgrading technologies can meet the needs of consumers in a rapidly developing digital landscape.

Take the banking industry, for example. Today, it’s estimated that 160 million Americans use online banking. Yet, just a decade ago, many people didn’t trust online banking and only wrote paper checks. 

Imagine how a bank that didn’t evolve to online banking trends would fare today (not well). 

Banking, like every industry, is constantly seeking to innovate using technology. Whereas IT modernization focuses on infrastructure, digital modernization focuses more on application and how it affects the customer experience.

Benefits of IT Modernization

  • Better execution of business strategies
  • Faster product development 
  • Increase speed of deliverables for clients
  • Better peer and colleague collaboration
  • Faster integration
  • High-tech security features
  • Reduced operating costs and higher profit margins

IT Modernization Challenges

  • The initial learning curve for employees
  • Resistance to learning new technologies
  • Initial costs to upgrade, along with fees to get rid of legacy technologies
  • Potentials for customer delays in the early stages of modernization

What You Can Expect When You Modernize IT

Here’s what you can expect when you modernize your applications and infrastructure:

  • Easier scalability. Cloud-based applications and infrastructure make it easier for you to go digital with your business. Whether that means adding virtual staff or letting your existing employees work from home, you’ll have much more flexibility. 
  • Long-term profitability. With lower operating costs, better functionality, and faster speeds, IT modernization can help you grow your business over time. Delivering a better product using the newest tools also allows you to sell your products or services for more.
  • Upgraded security features. Cybercrimes get more complex as time goes on. Infrastructure modernization protects your business and its data from the latest significant threats.

What You Shouldn’t Expect

On the other hand, here are some things you shouldn’t rely on when you modernize:

  • Higher profits from day one. It could take time for staff to get up to speed on new applications, and the costs of modernizing and removing old tech can offset profit margins for a while.
  • All your younger staff will automatically love new tech. Younger generations indeed grasp new technology faster. But if modernization leaves critical team members—young or old—behind and interrupts workflow, it could frustrate all parties involved. To some employees, change of any kind can be scary and instill fear that they may lose their job.
  • Seamless integration with other companies/customers. Just because IT modernization is the goal for many companies doesn’t mean everyone’s operating at a high capacity online. Only about 1 in 4 businesses say they’ve achieved their business system modernization goals. Some adjustments to accommodate companies or clients you work with who simply refuse to adapt may be necessary.

Ultimately, modernizing your business sooner rather than later is probably your best bet. Technology isn’t going anywhere, and companies that use the latest and greatest tools to add value to their customers stand to gain the most.

Get in touch today to learn how we can help modernize your business so you can get ahead.

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