Before commencing modernization, perform a careful analysis of the breadth and diversity of resources needed for a successful outcome. Project management and transformational leadership capabilities are as important as technical capabilities. Be highly selective in forming the team that oversees the effort. Choose people with a strong bias for change, a strong desire and ability to learn. A high tolerance for complex and uncertain situations, and a solid reputation for collaboration and teamwork.
Financial resource allocation is just as important. Align funding to your highest modernization priorities. Be very clear about which areas you will not spend money on. Ensure that financial resources are aligned with the highest value. Examine your choices about the desired characteristics and technologies.
Avoid locked-in situations, in which a single vendor has control over your interactions (because, for example, your data resides in a closed and proprietary system). Insist on open APIs that can connect to a range of other systems. Experiment with open source software and make interoperability and integration a critical part of your technological due diligence. For example, if you use commercial off-the-shelf software, make sure it can link to a variety of databases, including open source products. Due to the languages in which they are written and the technology piles on which they are based; look for technologies that integrate easily and work together.
When building the new system; think of resources for the legacy system to work properly. Even during the transition, you may need to fund must-do modifications to the legacy system (for example, to meet new regulatory and legislative requirements). Ensure that funding for these types of changes, for both the old and the new systems, has been factored into the overall budget.
Plan for funding to decommission and retire the old system, and to move people to the new one. Include funding for learning and development. Be clear and up-front about the transition plan so that the team with responsibility for maintaining the legacy system understands how important their role is, and what options are available to them. Provide incentives to make sure that these people remain highly motivated while doing what may seem to be unglamorous work.
Questions for investing in resources that make the change stick:
- Which IT investments are linked to the greatest return?
- How do we realign resources to support the transformation while running the business?
- What skills will be needed with the new systems, and how do we build them?
