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Over the past 40+ years, our nation’s businesses, organizations and Federal, State and Local government agencies have invested trillions of dollars to develop powerful software that successfully runs critical functions for their respective organizations without fail on a daily basis. Even today, these applications, containing hundreds of billions of lines of out of date programming code, are among the most valuable corporate and organizational assets in our economy.

Unfortunately, over the decades, these legacy systems have not kept up with the pace of new strategic technological innovation. Though this software is now several generations behind the latest technology, these applications continue to provide essential operational support to our nation’s corporations, organizations and government agencies.

Collectively, our corporate and political leaders, and our IT industry have turned a blind eye to the risks posed by these aging legacy applications. For the past 15 years, the overwhelming investment in strategic software has focused on deploying modern technology to the front end, “public-facing” applications while leaving the back end, “back office” functionality where it has been since the 70’s and 80’s or before.

This incremental “kick the can” practice has led to nationwide complacency regarding these inflexible, fragile systems. When consumers of these systems access modern, front end applications, they assume that the systems are state of the art. Few realize that behind the front end veneer, most of the workload is performed by cumbersome, outdated legacy applications with a dwindling number of resources capable of supporting them.

The recent Coronavirus pandemic and our government’s response to the catastrophe has publicly and decisively exposed the grim reality about the true state of our nation’s critical enterprise systems.

As the U.S. economy was largely shut down resulting in an historic loss of jobs, the CARES Act was passed to inject urgently needed funds into our ailing economy. Though the Federal government acted swiftly to pass this legislation, the outdated systems in most states have been unable to process applications for the new unemployment benefits provided for in the law.

This crisis has revealed the threat posed by our collective failure to face, accept and address the challenge of updating the nation’s most critical infrastructure – its aging legacy applications. Though this is one of the first nationally recognized failures of this magnitude, it will not be the last. It is only a matter of time before other outdated legacy systems suffer the same fate with severe consequences to the corporations and governments that depend on them.

In subsequent blogs over the next few weeks, I will discuss the threats posed by this crumbling infrastructure, the limitations of ineffective stop gap solutions and will ultimately propose how we can successfully transform these applications. Doing nothing is no longer a viable option.


ETS can help you make the transformation https://www.etsassociates.com/contact-us.




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Narrow focus limits Enterprise return on investment


Why does the Enterprise Market fail to embrace the promise of AI and Machine Learning? Many of the greatest minds in technology have been focused on Artificial Intelligence for years. Virtually every Tech Giant has launched high priority, big ticket initiatives in this area. Pundits from Gartner, Forrester, MIT and Deloitte peddle the allure of AI and Machine Learning.


Yet Gartner's 2018 survey shows that only one in 25 CIOs have implemented AI in their organization. Why?


Many AI enthusiasts are anxious to deploy AI but lack a specific problem or a clear vision to apply it to. Worse, without a high priority objective with a clear return on investment, it is difficult to secure a commitment for such a project.


Today, most AI applications focus on new applications such as evaluating retail customer behavior, detecting fraud in financial transactions, facilitating the recruiting process, assisting with employee productivity and improving shipping logistics. Important, to be sure.


Some Enterprise AI applications focus on mining legacy databases for insights and ways to monetize the data assets. Also important.


Yet all of today’s AI applications seem to assume that legacy enterprise applications and their inherent limitations will live forever. They focus strictly on minimizing legacy limitations (e.g. technical debt and lack of adaptability), monetizing the value of the legacy data or adding value with “bolt on” applications that must be integrated with the legacy applications. In other words, they fail to address the most significant issue.


Utilizing AI for comprehensive Digital Transformation


If AI and Machine Learning are going to meaningfully transform business functions, their power must be applied to the enormous multi-trillion-dollar problem of Enterprise Legacy Digital Transformation. Harnessing the power of this technology will unleash the biggest assets of the world’s largest corporations, governments and organizations – their legacy business rules that run their operations seamlessly every day – from the limitations of proprietary legacy hardware and operating systems.


These business rules locked in monolithic legacy applications are considerably more valuable and less available than the legacy data that many AI applications attempt to classify, interpret and mine for insights. Once the business rules are liberated from their aging platforms, the high cost of maintenance and lack of adaptability to changing business needs will be a thing of the past. The new AI and Machine Learning platforms will enable the enterprise domain and subject matter experts to work with data scientists on detailed, actionable roadmaps with clearly marked milestones for high value digital transformation and to revolutionize how software is developed, modified and maintained. And the world will never to be the same.


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Ironically, the biggest impediment to Enterprise Digital Transformation is not the lack of resources familiar with modern technology and platforms. Instead, the opposite is true…the true barrier is the lack of application developers on legacy platforms.


For the past few years, the Enterprise market has focused IT spending on deploying innovative, strategic technologies for customer-facing applications. Since the legacy systems weren’t broken and typically ran the “behind the scenes” mission critical business functions, IT leaders chose to ignore them. Instead, they chose to use sophisticated, alluring front end applications to enhance the company brand and effectiveness thus reducing the risk and disruption of upgrading their ERP systems.


This “kick the can down the road” approach resulted in the abolition of new investment in legacy applications. This drove legacy developers to abandon legacy platforms in search of the promise of challenging and stimulating endeavors. Some developers changed careers entirely while others retired.


Unintended Consequences

This unpredictable result has created enormous technical debt and a vast chasm between modern technologies and legacy systems. For organizations that base their success -- their very existence -- on their ability to capitalize on information technology and to do “more with less” this is extremely challenging. Today’s rate of acceleration in the change of business and technical innovation only exacerbates the problem.


Gartner predicts that every dollar invested in digital business innovation through the end of 2020 will require enterprises to spend at least three times that to continuously modernize their legacy application portfolio. Yet where will Enterprise customers find the legacy developers required to modernize their legacy application portfolio? In addition, how much longer will the scarce resources be available?


Contact ETS for Help

Enterprise Transformation Specialists provides you with highly skilled application developers to immediately address your critical resource shortage and to tackle your immense technical debt. We focus on business value as the primary driver of IT spending and adopt the philosophy of continuous maintenance, upgrades and improvements of your IT systems. The result we deliver is a cost-effective, long-term approach for digital transformation. Our specialists provide a bridge to transformation while preserving your valuable corporate legacy application software.


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