Challenger App Mod Story

Question 1

1. INSIGHT Warmer

Industry analysts estimate that 80% of existing apps will have to be modernized within the next 6 years as they will no longer be relevant to the business or affordable.

2 out of 3 CIOs say their applications portfolios aren’t aligned to their business strategy 2 out of 3 CIOs don’t know the true breakdown of costs of running their portfolios 50% of all CIOs don’t have the expertise, resources or budget to modernize their applications 60% of all CIO’s admit they lack the right strategy to transform their organization’s portfolio With downward pressures on budgets that see 70-80% of their budget being consumed by ‘run & maintain’ activities, the case for a re-think is clear. Modernization isn’t a nice to have any more - it’s necessary for survival.

Answer 1

2. Reframe: Today 100% of IT organizations want to reduce IT spend and over half are looking to initiate innovation and transformation.

They understand that there are tremendous opportunities for IT Total Cost to Serve reductions and huge benefits to business operations by modernizing applications.

However they do not understand how to build a solid business case nor how to approach it

Question 2

3. IMPACT: Rational Drowning: Most IT departments have tried unsuccessfully to move their portfolio’s forward: piece-meal projects and lengthy consulting engagements that end in no actionable recommendations.

They are simply unable to effectively deal with the fast-changing technologies and business needs that are compounded by global competition.

Time is running out and the problem is becoming more complex as new platforms, new mobility functionality and cyber security requirements drive the need for transformation.

rate increase for mainframe usage are inevitable

Aging business critical apps represent increased risk to the business

Increasing IT Support costs are unsustainable

Answer 2

4. Emotional Impact:
••Radical unstructured change will drive many CIO’s to failure. Slow incremental change will drive many others to the same fate, especially as the graying of the workforce will put much of our legacy assets at risk. Reactive fire-fighting is simply not the answer. Industry experts are telling us that those who do not actively accelerate their portfolio modernization effectively will find themselves in very precarious situations.

• •Successful modernizations allow IT Managers to re-staff and reskill and change the nature of their relationship with the business from cost centre to enabling strategic partner.
• •Failure to modernize may result in the business turning to outside firms for new IT and/or growth of internal “shadow IT”
• •a G100 North American based company identified applications modernization as the best way forward but were unable to build an business case because they were using the traditional approach. They found that using a partner with an industrialised approach reduced the cost, shortened the project timescales, improved risk and delivered higher quality.

Question 3

5. SOLUTION: New Way Forward You should: Develop a “Total Cost to Serve” understanding to build a well quantified business case that justifies your modernization investments

“Low hanging fruit” quick win migrations will provide the kick-start to platform cost reductions to fund strategic modernizations that focuses on increasing Business Value

Gain buy in from the Business stakeholders through workshops

Establish a Modernization/Cloud Enablement Governance body to ensure applications are modernized and move to cloud in right sequence, in the right way, and to schedule to maximize the benefits and ROI

Migration to the Cloud will reduce operating costs and enable IT to start innovating with the business to support their growth/change agenda . IT ceases to be a cost and becomes a competitive differentiator and positions itself as a priority area for business to invest in.

Answer 3

6. CSC Offerring: CSC Offering: CSC’s Migration Services Offering is a proven unique industrialised service and low risk method of application modernization for the cloud.

Features are:

Trained experienced apps modernization staff in dedicated facilities using best practice and leveraging a Global partner/vendor eco-system.

Best of breed tools that deliver 90-95% automated processing

Full range of modernization for technologies e.g. C++, COBOL, VB, etc.

Delivers industry leading results:

Best Costs;

Highest level of consistency across the apps;

Highest quality of output code

Benefits: Fastest time to value and lead to

50% - 80% IT cost reductions in infrastructure support 30% - 40% cost reduction in IT development costs and Application maintenance

Flexibility and Agility in application innovation