Over the past five years, I have been involved in twelve modernization projects at the corporate level; Each has had its own unique challenges.
Technological modernization involves replacing, updating or expanding an existing technological solution with a more productive system. The scope here can range from system re-architecture to creating a simpler process with modern solutions; there is no silver bullet approach.
Not surprisingly, upgrading technology is a huge investment that almost every industry makes every five years. In fact, the modernization of technology in business never ends. Still, organizations have more notable milestones, such as moving from a conventional HTML, CSS, or J-Query website to a modern front-end framework like React/NextJS.
Technological modernization is an often overlooked necessity to stay abreast of the latest technological advantages and competition; however, it is expensive. So it’s always important to remember ROI, but remember that it doesn’t always equate to fiscal value; time-saving and quality-of-life updates have indescribable value that cannot always be included in a financial statement.
What are the challenges?
You have identified a bottleneck, process or system that needs modernization. You’ve done all your research and developed a good proposal. Now it’s time to turn to your CTO, right? Not so fast.
Before you do anything, you need to make sure you’ve covered your bases:
- What is the ripple effect of this technology choice?
- Whose job, if any, will this decision affect?
- What is the commercial opportunity or impact of this choice?
In the end, it all comes down to this: What’s the point? What are the consequences?
Everyone knows that stakeholder involvement is essential, but the above is rarely considered. You stand a better chance of getting your upgrade proposal accepted if you think about the above so that you can succinctly outline the benefits, risks and consequences. This is because your CTO will need to speak to the CEO/CFO and other board members to convince them, so outlining this information in advance will go a long way in moving the discussions forward and prompting others. that it’s not a half-baked idea (which is the main thing you want to convey).
You must accept that your decision may have ramifications and lead to difficult choices. While you should always do what is right, you also have to accept the consequences of those choices, which is the core of being a technology leader. Let’s look at an example from a previous company I worked for.
In a previous role, we modernized the way client applications worked. Previously, when people applied for the business, their data was extracted onto large Excel sheets and various paper trails, which meant that people had to be hired to check and verify the data.
This created a lot of time between application and acceptance, which was costly in addition to allocating resources to accommodate the client. The solution was simple: automate and verify the registration details.
Technologically, we can achieve this within four months with a new architecture and cloud infrastructure. The consequence was that twenty data entry clerks would lose their jobs. It was the right choice in the long run for the business and cutting twenty jobs more than paid for the new technology and improved customer experience, but still twenty people lost their jobs.
What causes failure?
Besides poor modernization project management (a definite problem where companies fail and cause modernization efforts to fail), other factors can influence the project and failure.
I previously talked about stakeholder management and idea investing; this problem can lead to failure, but outside of the C-suite, does your team buy you into the idea? I’ve seen projects fail when the technology team couldn’t align on the solution; the product team disagrees on priorities, etc. When I say get stakeholder buy-in, I mean everyone.
Agreeing on how to solve the problem is critical. You can solve a problem with various technological solutions, but what makes the most sense? This can open up a bag of worms that people never consider because engineers are engineers. I’ve been on projects where you’re 50% of the way through the solution and the engineers want to flip the script, change the approach, or rework the whole idea. Everyone has an opinion and I suggest you avoid being swayed.
Understanding your team’s capabilities is also a consideration that often leads to failure; just because something can be done doesn’t mean it can be with your team. Does your team have the skill set or previous experience to do what you plan? For example, if you’re building an AI language learning model for your company’s data, does anyone on your team know how?
One of the biggest failures I’ve ever worked on here was a complete replatform of an existing brand into a multi-client platform. The business wanted to launch a new white label service for competitors and use advanced technology. The problem was that the teams and management had no idea how to build what was itself a startup because white labeling was new to them.
So the teams worked in a waterfall and modernization efforts failed.
What leads to success?
I’ve talked to you about where it can go wrong, but what can you do to make sure your efforts succeed?
It all comes down to planning, executing and reassessing.
You must fully understand the problem, the business goals, and the outcome. Many companies built a non-standard system several years ago because they rushed the process or did not fully understand the requirements. Therefore, it is extremely important to dive deep into what needs to change and why.
Continuous communication and effective collaboration between all stakeholders, from the C-suite to the development team, is essential. Everyone involved needs to be on the same page regarding goals, timelines, and expectations. Regular updates and feedback help keep the project aligned with its goals and adapting to any new challenges or insights.
Understanding potential risks and preparing mitigation strategies in advance is vital. This includes technical risks, such as integration challenges and data migration issues, and operational risks, such as resistance to change among staff or changes in market conditions. Having contingency plans in place can help manage these risks without derailing the project.
Using the right technology and experience is critical. This may mean hiring external consultants who specialize in modernization or investing in training your current team to upskill them. Choosing the right technology tools that meet your business needs and future growth can dramatically increase the chances of success.
Rather than a complete overhaul at once, breaking the project down into manageable, incremental stages can allow for easier management and setup. This approach also allows for iterative testing and feedback, making continuous process refinement and improvement possible.
Modernization efforts should ultimately improve the user experience for internal staff or external customers. Regularly reviewing how changes affect the end user and ensuring that the upgrade delivers tangible improvements to their interaction with your company will go a long way to project success.
Focusing on these areas can increase the likelihood that your technology modernization efforts will be successful and provide sustainable value for your organization and its stakeholders.
