MWC 2024: Why modernization projects go wrong: Insights from Stephen Ellis of Amdocs Cloud
As banks and telcos handle vast legacy IT estates with numerous applications, a prevalent challenge arises: many of these apps are outdated, no longer suitable for their intended purposes, and demand urgent modernization.
The goal of modernization must be to deliver maximum business value.
Modernization can reduce tech debt, cut IT costs, improve the digital experience and enable innovation. Without modernization legacy apps can place your organization at a competitive disadvantage and constitute a security risk. Yet, due to limited budgets and the preference to take a manual approach, modernization teams can touch only a fraction of these apps each year.
Indeed, research shows that 79% of modernization projects fail to deliver the expected results. This is attributed to cost, complexity, scoping, skill gaps and project fatigue, amongst other reasons1. In contrast, based on our years of experience in modernization projects, Amdocs contends that such failures are often due to a lack of focus on business value.
We hold that putting business value front and center, and identifying the right areas to improve, is the essential first step towards a successful modernization project.
This article first appeared on Vanilla Plus.
