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IT Modernization: Unlocking Growth in the Digital Era

IT Modernization

But what exactly does IT modernization entail, and why is it crucial in the contemporary digital workplace? Let’s delve into this transformative process and explore its significance for businesses aiming for sustained growth and success.

IT modernization refers to the strategic overhaul and upgrading of a company’s information technology infrastructure, systems, and practices. Modernization will align with current technological trends and meet evolving business needs. This can encompass a wide range of initiatives, from migrating to cloud-based solutions to implementing advanced cybersecurity measures and adopting agile development methodologies.

Examples of IT modernization initiatives are becoming increasingly common. Organizations are leveraging technologies like AI, intelligence, machine learning, and advanced analytics to streamline operations, enhance customer experiences, and drive innovation. From automating routine tasks to optimizing workflows, the benefits of IT modernization are manifold, contributing to improved efficiency, productivity, and agility in the digital workplace.

Drivers of Modernization:

Organizations today are driven by several factors to prioritize IT modernization. One of the primary drivers is the need to address legacy or outdated systems that pose significant challenges in terms of user experience, maintenance, compatibility issues, and security risks. For instance, relying on legacy infrastructure can leave businesses vulnerable to cyber threats and data breaches, as outdated systems may lack the necessary security patches and updates.

When we consider the objectives of many end user computing (EUC) teams, e.g., efficiently managing endpoints, simplifying device management, and streamlining troubleshooting processes, IT modernization is an effective way to achieve these goals.

Adapting to evolving employee expectations, customer needs, and market demands calls for a shift towards modernized IT solutions. In today’s digital landscape, employees and customers alike expect seamless access to IT support and services anytime, anywhere. Legacy approaches to IT support, characterized by reactive troubleshooting and cumbersome ticketing systems, no longer suffice in meeting these expectations. Employees and customers facing technical issues are left frustrated by long wait times and inefficient resolution processes. Modernizing IT support with self-service portals, proactive remediation tools, and streamlined device management enables faster response times and boosts overall satisfaction.

Recent insights into retail banking indicate that these organizations are leaning on modernization to unlock customer experience enhancements. A survey of leaders at financial institutions in Europe and the U.S. highlights that three-quarters of the banks surveyed believe they need to modernize. They also understood the need to phase out legacy systems to implement customer service enhancements.

Modernizing IT is essential for enabling broader digital transformation initiatives that benefit the entire organization. IT leaders suggest that legacy tech hinders transformation by limiting the ability to introduce newer technologies, making it one of the top 10 barriers to strategic IT success. By efficiently managing endpoints and optimizing IT infrastructure, businesses can drive innovation, improve collaboration, and gain a competitive edge in the marketplace.

Let’s explore the benefits of IT modernization in more detail.

The benefits of IT modernization:

Modernizing IT yields numerous benefits, not only for IT teams but for the wider organization, too.

Enhanced efficiency and productivity: Modernizing IT streamlines workflows, automates routine tasks, and eliminates manual processes, leading to increased efficiency and productivity. For example, implementing cloud-based collaboration tools enables remote teams to collaborate seamlessly, improving communication and productivity.

Similarly, modernizing service desk processes and infrastructure will lead to enhanced efficiency and productivity. The IT org will benefit as employees are relieved of time-consuming manual tasks and can focus on higher-value, engaging work. Other employees will also benefit from self-service options, for example. This modern technology empowers users to troubleshoot common issues independently, reducing reliance on IT support and enhancing satisfaction.

Scalability and flexibility: Modern IT infrastructure is scalable and flexible, allowing businesses to adapt quickly to changing market dynamics and business needs. Cloud computing, for instance, enables organizations to scale resources as needed, reducing infrastructure costs and improving agility. Legacy systems often struggle to adapt to an evolving digital landscape, leading to inefficiencies. To compensate for this, 92.6% of enterprises use three or more tools to monitor, manage, and troubleshoot.

Cost savings and ROI: IT modernization can lead to significant cost savings over time through reduced maintenance costs, improved resource usage, and increased operational efficiency. For instance, consolidating legacy systems and migrating to cloud-based solutions can result in lower hardware and maintenance expenses, yielding a positive return on investment.

Modernizing enables IT leaders to reinvest in organizations, fund further innovation, and drive growth. As Chirajeet (CJ) Sengupta of global research firm Everest Group explains, “[organizations are] building a business case as they modernize, using savings from one piece to fund the next.”

Better security and compliance: Modernizing IT strengthens cybersecurity defenses, mitigates risks, and ensures compliance with regulatory requirements. Implementing advanced security protocols, such as multi-factor authentication and encryption, protects sensitive data from unauthorized access and breaches.

Improved user experience: Modern IT solutions often have digital employee experience (DEX) at their core. They prioritize user experience, deliver intuitive interfaces, personalized services, and seamless access to resources. Moving away from traditional solutions and toward modern tools such as end-user experience management (EUEM) and DEX, will lead to more satisfied and effective employees. For example, EUEM tools help to remove blind spots and identify the source of device performance issues more easily. This, in turn, improves the user experience, as proactive IT allows for less downtime and digital disruption.

In conclusion, IT modernization isn’t just a technological upgrade—it’s a strategic imperative for businesses seeking to thrive in the digital era. By addressing legacy systems, adapting to evolving needs, and embracing digital transformation, organizations can unlock a multitude of benefits. These range from enhanced efficiency and productivity to improved scalability, cost savings, and better security. Embracing IT modernization isn’t merely an option—it’s essential for driving growth, innovation, and competitiveness in today’s digital workplace.

Report

The FORRESTER WAVE™: End-User Experience Management, Q3 2022

The FORRESTER WAVE™: End-User Experience Management, Q3 2022