IT Modernization Strategy | Deloitte Insights

A core modernization framework built around technical soundness can be more comprehensive than a traditional debt framework. Such a framework focuses on preventive care. In this case, use enhanced tracking, measurement, and prediction to address unoptimized legacy technology before it becomes a major problem for your business. Rather than accumulating debt and periodically repaying it with large but inefficient investments, the Wellness Framework allows companies to repeatedly identify technical issues and reduce costs, operational risks, and innovation readiness. encourage you to predict when your investments will be most effective based on

The focus of such a health check, or core check, would be on the five areas that statistically have the greatest spending and the greatest opportunity. Each has current goals for modernization, which may change over time as emerging technologies become more sophisticated or new technologies become more widespread.


Infrastructure is the broadest category and often the most difficult and expensive area. Fortunately, as Utah proves, organizations can move their entire mainframe system to the cloud within 18 months if they align with their transformation goals.8 Within this category, technical wellness refers to the migration of mainframes, servers, and end-user devices (e.g., virtual desktops) to the cloud across technical environments (sandboxing, quality assurance, operations). Additionally, aging fiber, LAN, and WAN networks across facilities (such as data centers and corporate offices) are being modernized to 5G, Wi-Fi 6+, low-energy Bluetooth, and satellite communications. These upgrades enable businesses to take advantage of private networks, advances in software-defined networking, and other advanced connectivity features.


Data life cycle (including cleansing, manipulation, and management) and data storage make up this category. Businesses need automation to streamline data cleansing and manipulation so they can spend less time managing data and more time analyzing insights. An AI model is only as good as the data it ingests, so reporting on data usage and cleanliness is also important, especially from a trust perspective.

You can modernize storage across data centers, offices, and remote assets to cloud storage systems, and even stream data in real-time. Amazon Web Services recently established a streaming data pipeline that moves data across multiple sources from connected devices into a central repository, allowing users to make better use of their data and ensure the most up-to-date information possible. is now available.9 This data can be used in applications such as predictive maintenance, environmental monitoring, and smart city management. This application opportunity relies on a vast environment of data stores, lakes, spindles, and drives, each with complexities and very real costs.

“Anything other than using real-time data has become very frustrating and feels unnatural to the end consumer,” said Mindy Ferguson, vice president of messaging and streaming at Amazon Web Services. I am. “Having real-time data always available is becoming a customer expectation. That’s the world we live in.”Ten


This broad category includes legacy custom applications that organizations have modernized over time through one or more of the “Five R’s”: replatform, reinvigorate, remediate, replace, and refurbish. . It also includes packaged applications such as ERP and SaaS applications. These applications require a clear upgrade strategy as vendors continue to improve their products, dealing with the inevitable series of customizations that complicate upgrade paths and integration.

This category of modernization also includes inspections of operational technology applications and product technology stacks, such as embedded products and customer-facing digital products.

Labor force

Many companies struggle with a workforce that is a mix of in-house and third-party contractors that may or may not be ready to deliver on the modernization efforts described above. As we discussed in the “From DevOps to DevEx” trend, to improve talent acquisition and retention for their technical teams, leaders are looking to improve talent acquisition and retention for their technical teams by using modern technology, powered by investments in tools (across the entire software development lifecycle), processes, and culture. engineering experience should be prioritized.

Cyber ​​risk and trust

Finally, companies need to consider the relative health of their cybersecurity across multiple areas: security and privacy, regulatory compliance, and ethics and morals. The first two areas can be tracked and improved through cybersecurity automation, especially in response to the rise in artificially generated content, as detailed in the trend “Reality Defense.” Ethics requires a more nuanced approach, and companies need to stay abreast of the latest thinking on the potential harm that technology can cause to society.11

The benefits of a core health check across these five areas are not only intangible, but also financial. For example, leaders who proactively manage and reduce technical debt are expected to deliver services to the business at least 50% faster.12 And the time back to developers can lead to even more features being developed to generate revenue from customers and efficiency for employees. Perhaps most importantly, an accurate technical debt tracking system gives your organization some peace of mind knowing when and how to prioritize investments, rather than scrambling to catch up to the market. That means there is a possibility of getting it.

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