Continual modernisation programmes are key to IT success

Micro Focus has published the findings of its ‘Endless Modernization’ research with Standish Group, which reveals modernisation projects using an incremental and continuous improvement model achieve superior results when compared to other project-based approaches including the ripping and replacing of core business applications. The research utilises data gathered from The Standish Group’s CHAOS2020 Report and indicates that this infinite flow method to modernising core business applications has a number of benefits in regards to return of value, customer satisfaction, sustainable innovation and longer application lifespans.

“As we see in our latest research with Standish Group, a continuous and multi-phased modernisation methodology delivers incremental value and reduces risk when compared to the alternatives of rewriting or replacing,” said Neil Fowler, general manager of Application Modernisation and Connectivity at Micro Focus. “With application modernisation typically being an important first step in an enterprise’s larger digital transformation journey, an incremental flow-based model provides a methodology capable of matching the flexibility of today’s business climate while ensuring continuous transformative activity.”

Conducted by The Standish Group, a primary research advisory organisation focusing on software development performance, the multi-decade research of over 50,000 participants shows that an infinite flow model ensures ongoing modernisation activity, while narrowing the gap between project management and delivery teams. This research is consistent with Micro Focus’ own findings where 92 percent of core applications are strategic and 70 percent see modernisation as their preferred option, according to a 2020 Micro Focus study.

Key findings of the Endless Modernization research include:

• Modernisation projects yield significantly higher success rates: Companies replacing a software application and starting from scratch had a 26 percent success and 20 percent failure ratio as opposed to a 71 percent success and 1 percent failure ratio for teams choosing to modernise an existing application rather than fully replacing it.
• Rip and replace projects struggle: Only 27 percent of companies choosing a rip and replace strategy saw a high return, with 41 percent reporting a low or very low return on their investment. In comparison, a flow-based modernisation methodology returned twice the value on average than other types of software development approaches.
• Modernisation is a preferred path over ripping and replacing: 45 percent of enterprises ripping and replacing their application software were ultimately disappointed or not satisfied by their results as opposed to 55 percent of organisations choosing modernisation responding as satisfied.
• Incremental flow-based modernisation approaches have numerous benefits: Rather than running one large modernisation project, research shows that enterprises incorporating a series of smaller, microservices or microprojects achieved much better outcomes.  

“The demand is for more value, higher customer satisfaction, and lower costs,” said Jim Johnson, founder, The Standish Group. “It is our opinion—based on our extensive research and observation of role models—that the move to infinite flow satisfies all three of these demands.”