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Time To Innovate: How Established Businesses Can Differentiate Through Modernization

Dec 02, 2024 - forbes.com
Sanjay Brahmawar, CEO of Software AG, argues that established businesses can leverage their legacy systems to gain a competitive advantage over startups. He suggests that modernizing these systems can turn the vast amount of data they contain into valuable insights for decision-making and service improvement. Brahmawar also points out that scale is an advantage for established organizations, as they have a breadth of historical data that can be turned into a key differentiator with the right modernization efforts.

Brahmawar emphasizes that modernization should not be confused with migration, which can lead to errors and security issues. Instead, modernization should focus on upgrading and optimizing existing systems without uprooting the information they house. He also outlines the competitive advantages of legacy modernization, such as streamlining processes, deploying new apps, integrating AI and machine learning, and reducing complexity within the tech stack. Ultimately, he believes that modernization can lead to industry-wide innovation and benefit customers.

Key takeaways:

  • Modernizing core systems can provide strong opportunities for differentiation and can turn the large volume of data within these systems into valuable insights for decision-making and service improvement.
  • Established organizations have the advantage of scale and a breadth of historical data, which can be turned into a key differentiator with the right modernization efforts.
  • Modernization should be prioritized over migration to the cloud, as the latter can lead to errors and security issues. Modernization can upgrade and optimize existing systems without uprooting the information they house.
  • Legacy modernization can provide tangible benefits such as streamlining processes and workflows, enabling the deployment of new apps, integrating AI and machine learning into existing ecosystems, and transforming IT from a cost center to a business asset.
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