Legacy Systems Modernization Combined · Taking ITto the next level Srini Madala President/CEO ... Microsoft PowerPoint - Legacy Systems Modernization_Combined Author: devans Created

Legacy Systems ModernizationLessons Learned

Government Technology Conference

May 9th, 2011May 9 , 2011Dale Jablonsky – CalPERS

Modernization AgendaModernization Agenda

1. Building a Business Case. u d g a us ess CaseA. To Justify a new Modernization ProjectB. To Save existing Projects from Budget Cuts

2. Modernization OptionsA. Rip and ReplaceB. Piece‐meal ApproachesC. COTS Software vs. Custom Development Solutions

h l f i i3. The Value of Enterprise IntegrationA. Multi‐Channel IntegrationB Paperless Workflow IntegrationB. Paperless Workflow IntegrationC. Government‐to‐Government Integration

Building a Business CaseBuilding a Business Case

• Legacy Systems – a “Burning Platform”Legacy Systems a Burning Platform

• The Definition of Sustainability

i i l i• Transaction Processing evolution– CPU evolution

– Storage evolution

• Business Alignment and emerging Strategies

• Government Modernization

Burning PlatformBurning Platform

• Obsolescence FactorsObso esce ce acto s– Readily Trained Staff availability– Lack of Documentation – Succession Planning– Ease vs. Difficultly of Integration– Maintainability (n‐tiered vs. monolithic)– Shared Environment = Shared Costs (you do not want to be the last one standing)

• Cost Factors – Time and Money• Cost Factors – Time and Money• Mission Criticality• Business Agility• Business Agility

Sustainability DefinedSustainability Defined

• Aligned with Industry Trends (EA)Aligned with Industry Trends (EA)

• Increasing Platform Innovation opportunities

i & O i S ff dil• Maintenance & Operation Staff are readily trained and available

• Engineering & Development Staff are readily trained and available

• Total Cost of Ownership is decreasing

• Return on Investment is steadyReturn on Investment is steady

OLTP EvolutionOLTP Evolution

• CPU InnovationC U o at o– Moore’s Law– Commoditization – Wintel & Lintel– Application Virtualization– Processing as a Service (pay as you go)

• Storage Innovation– Commoditization – Solid State DisksD t Vi t li ti– Data Virtualization

– Storage as a Service (pay as you go)

• Data Center “in a box” grid computing• Data Center in‐a‐box – grid computing

Business AlignmentBusiness Alignment

• E‐Government StrategyE Government Strategy

• Paperless Office – Document Imaging

d kfl• Automated Workflows

• Responsive to Legislative Changes

• Integrated Services

• Business‐to‐Government (B‐to‐G) trendsBusiness to Government (B to G) trends

• Government‐to‐Government (G‐to‐G) trends

Government ModernizationGovernment Modernization

• California GovernmentCalifornia Government– World’s 7th Largest Economy

Volumes and Complexity– Volumes and Complexity

• State‐of‐the‐Art Government needs State‐of‐th A t S tthe‐Art Systems

• “Do More with Less” Mandate

• Enterprise Systems – Enterprise Architecture

• Private Sector CompetitionPrivate Sector Competition

Taking IT to the next level

Srini MadalaPresident/CEO

Modernization Alternatives

SoftSol Technologies

GTC West

9

Alternatives SacramentoMay 9, 2011

AgendaAgenda

• Modernization FactorsModernization Factors

• Deciding Among Modernization Alternatives

“ i i h l ”• “Doing More with less”

• Case Studies

• Lessons Learned

Modernization FactorsModernization Factors

Legacy Application Features

Target Considerations

Service Goals Better ServiceCollaborationTransparency

Organizational Factors

External FactorsFactors

Modernization OptionsModernization OptionsHighly Customized

COTS

Rewrite

Auto‐MigrationRewriteMigration (Auto/Manual)

R h tLow budget

Significant Enhancements

Auto Migration

Rehost

Rehost

Industry Standard

COTS

y

“Doing More with Less”Modernization in Current TimesModernization in Current Times

Millennials

Millennials The new generation

Modernization Initiatives

ResourcesBudget

Budgets Resources

CDB/COMET Auto MigrationCDB/COMET Auto‐Migration

Challenge

• Obsolete platform

Solution/Results

• Completed with no impact

• 30,000 transactions per hour

• Mission Critical Application

to business

• Low cost and reliable

• Risk mitigated for larger• Mission Critical Application • Risk mitigated for larger modernization initiative

R it f C M t S tRewrite of Case Management System

Challenge Solution/ResultsChallenge

• 30 Yr mainframe COBOL

• Lacking critical functionality

Solution/Results

• Complete web‐based self‐service optionsLacking critical functionality

• Limited Accessibility • Seamless integration with DMV

h bl• Better services to the public

Modernization Lessons Learned

• Support of Top ManagementSupport of Top Management• Customer acceptance• Lack of test cases/test assets• Lack of test cases/test assets• Data cleansingU t i i• User training

• Latest technology need not be the most i tappropriate

• Crafting the right methodology

SummarySummary

• Challenge? Opportunity?Challenge? Opportunity?

• Many alternatives

S Ch i• Smart Choices

THANK YOU

May 9th ,2011

Legacy Modernization

y ,

egacy ode a oLessons Learned

Presented by Brian SwayGovernment Technology Conference - West

© CGI GROUP INC. All rights reserved

_experience the commitment TM

Keep Focused On the Core Objective:How Best to Support Your Business NeedsHow Best to Support Your Business Needs

Search for combination of measures to rationalizeyour application portfolio to reduce cost increaseyour application portfolio to reduce cost, increase efficiency, and effectiveness

As-is Portfolio To-Be Portfolio

2© CGI GROUP INC. All rights reserved

“Yes Modernization is Attractive, but …”

• Am I seeing the world differently than other organizations?organizations?

• What change is appropriate, how I prioritize?How can I justify a BCP in an “all cuts” environment?• How can I justify a BCP in an all cuts environment?

• How can I manage the risks associated with a modernization project?modernization project?

• Will I have the people and needed skills to support the transition and future state?


Motivations for Application Portfolio Programs

Change Drivers CGI Poll• Consolidate the portfolio for

long-term savings 32%

• Find near-term, immediateLong-term savingsFind near term, immediate

expense reductions 29%

• Lay the foundation for future competitiveness 39%

savings

Short-term expense competitiveness 39% cutsStrategic Change

Source: CGI Website Poll, 5/1/2009, 499 replies21


Modernization is a Process of Portfolio RationalizationRationalization

Not a one-size fits all question• Retain current applications

Renovate the applicationsRenovateRetain

• Renovate the applications• Replace or retire the applications • Re-engineer

ical

Con

ditio

nTe

chn

Replace or Retire Re-engineer

Business Value


Use a Disciplined Approach to Determine an Appropriate StrategyAppropriate Strategy

Application Portfolio Rationalization Assessment

Catalog /Inventory Categorize Business

CaseEvaluate /

RecommendCost &

RoadmapPrep &

Planning

Collaborative Process With Diverse Expertise

Detailed OutcomesDiverse Expertise

• Business Domain Knowledge• Business Engineering • Technology

Current State Application Portfolio• Enterprise Information View• Application Inventory

• Governance • Change Management

pp yRationalization Roadmap

• Business CaseCost / Benefit Analysis• Payback


What does Portfolio Rationalization Translate into?into?• We typically identify 10 to 30% savings in an organization’s

IT maintenance budgetIT maintenance budget• Enables organizations to spend less on maintenance &

support, realigning expenses with reduced revenue levels, and/or reallocating IT dollars for business critical initiativesand/or reallocating IT dollars for business-critical initiatives

Example of Decreases in Maintenance &

IT Budget: $150MMaintenance as % of Budget: x 73%

Support Annual Budgets

Maintenance as % of Budget: x 73%Application Maintenance & Support: $110MMaintenance & Support Savings %: x 20%

Savings $ $22MNew Maintenance & Support Budget $88MNew Maintenance & Support Budget $88MNew IT Budget: $128M


Managing the Risk of Restructuring a Legacy PortfolioPortfolio

• Disciplined portfolio rationalization assessment helpshelps• Provide measureable and meaningful criteria to manage

program• Prioritize initiatives• Avoid projects that don’t measure up • Identify needed business process adjustment• Identify change management requirements

Provide concrete road map for optimizing efficiency &• Provide concrete road map for optimizing efficiency & scale, while reducing complexity & operational risk


HR Best Practices/Workforce in TransitionMuch more than crunching numbers and dataMuch more than crunching numbers and data

• Address the needs of your dedicated and valued employees who are the keepers of organizational knowledgeablewho are the keepers of organizational knowledgeable

• Employee engagement & support• Effective communication• InclusionInclusion

• Change management • Skills assessment

C t i i / R t i i• Cross training / Retaining• Provide career growth opportunities• Reassignment

• Leadership• Senior management must keep employees informed about the change process

following through on actions• Middle management must facilitate change and help their employees

understand the reasons for the change and adapt to it26


A Comprehensive Rationalization Program

Resource R ll i /

Due Wind DownReallocation/Modernization

Diligence/Analysis Transition/

Rationalization

• Catalog/Inventory• Categorize• Evaluate/Recommend• Roadmap• Business Case

• Change management/ retraining/ retaining staff• Acquire/Transfer knowledge• Deploy/Operate• Manage operational risk• IP monetization

• Re-deploy freed-up resources

• Provide career growth opportunities

• Positioned for the • Business Case • IP monetization• Decommission applications and transactions future


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Legacy Systems Modernization Combined · Taking ITto the next level Srini Madala President/CEO ... Microsoft PowerPoint - Legacy Systems Modernization_Combined Author: devans Created