Levels of software modernisation are lower than expected in most industries, averaging 30%-36%, according to a study by Forrester commissioned by CA Technologies.
The path to modern software-enabled business will take many twists and turns, it says, depending on a particular firm's starting point, environmental features and organisational capabilities and commitments.
However, in almost all firms, software modernisation is low, which reduces business agility, restricts implementation flexibility, and stretches time-to-value for digital innovation.
Given customer preferences for digital, or at least being digitally enabled, across all B2B and B2C industries, low levels of software modernisation suggest the possibility of significant returns to firms that move quickly. Software modernisation has three characteristics:
• A modern approach to software development that emphasises the use of methods and skills geared to rapidly translate software opportunities into software systems.
• A modern approach to software delivery that exploits mechanisms matching software consumption to software spending.
• A bias to employ software that provides essential business outcomes now while maximising future options for software-enabled business opportunities.
The faster-growing companies had IT application development cycles that were 29% shorter than those in slower growing companies.