How platform modernization supports businesses in keeping pace with new technologies

The rapid growth of new technologies like Artificial Intelligence (AI), the Internet of Things (IoT), Robotics, and Virtual Reality (VR) means businesses will continue to face successive waves of new digital technologies and challenges. This is where the concept of platform modernization comes in. It updates the existing platforms with current standards by upgrading the underlying Information Technology infrastructure, architecture, and features.

Technology-led disruptions in business are not going to slow down. Most companies are soon expected to employ hybrid or cloud management technologies, tools, and processes. According to a McKinsey report, over 50% of user touches are expected to be augmented by AI-driven speech, written word, or computer algorithms by 2024. With digital being seen as the way forward, the speed of modernization of business platforms has also accelerated since the pandemic. By 2026, global digital transformation spending will reach $3.4 trillion from $1.6 trillion in 2022.

Globally, businesses are waking up to the fact that while legacy systems may have fueled their growth till now, they have reached a maturity point beyond which further development is impossible. Companies that continue to invest in their legacy systems leave no room for innovation in their business. Moreover, maintaining a legacy platform often becomes a financial burden for businesses as working with old software, and underlying infrastructure becomes more expensive and challenging. Therefore, most organizations are spending fortunes to keep pace with the latest technologies. However, blindly adopting new technologies and business strategies like social media, mobility, analytics, and cloud strategies like AI and IoT while ignoring old systems could be counter-productive.

How Platform Modernization Helps 

While it is being realized that legacy applications and outdated platforms can bring a booming business down, platform modernization techniques have proven that organizations can upgrade their existing systems without compromising on the current needs. They can unlock the data and intelligence stored in their legacy systems to include them in their modernization journey.

Platform modernization techniques help update and optimize existing business systems while supporting their integration with other systems based on the latest technology platforms. This provides operational efficiencies to organizations by addressing technology constraints and meeting customer expectations. The following are some benefits of platform modernization that no company can ignore:

• Cost benefits: Maintaining old systems is a more significant cost burden than going for modernization. While the upfront cost of platform modernization may seem high to a business entity, it helps reduce overall costs in the long run.
• Productivity: Platform modernization has helped in reviving many failing old businesses. As it brings new-age innovations like automation and data-driven intelligence into the picture, a company’s productivity increases several notches.
• Better customer experience: Providing a better customer experience is key to business success in modern times. As customers are exposed to the better experience provided by early-stage businesses, legacy organizations are also required to up their game by going for modernization. This will also help them in taking on the competition in the tech-heavy business landscape.
• Security: Upgraded platforms are less vulnerable to cyber-attacks. As new software is frequently upgraded, it becomes easy for modernized platforms to keep their critical data safe.
• Agility: Companies become more agile as platform modernization makes adopting new algorithms, security protocols, and technologies easy. This agility acquired through modernization, thus, keeps a business relevant in the long run.

New Trends in Platform Modernisation

As underlying technologies are growing fast, several recent trends in platform modernization have emerged. Here are some examples:

Cloud migration: More companies are migrating to the cloud for faster data transfer and processing, better third-party integration, and security.

DevOps: Companies are also adopting DevOps, an automation-driven model enabling seamless collaboration between development and operations teams.

AI Chatbots: Implementing AI chatbots enables legacy organizations to turbocharge their sales.

Hyper-automation: Forward-looking companies are increasingly automating routine processes harnessing futuristic technologies like AI, virtual assistants, robotic process automation (RPA), and low code application platforms (LCAP).

Getting on the disruption bandwagon

Platform modernization improves a company’s overall efficiency and allows it to be tech-forward, enabling it to use the latest technologies to drive new value and scale faster than competitors. For instance, a platform-based model enables a seamless experience across the ecosystem by making sense of large volumes of data with the help of AI and using Machine learning to match customers with the products and services they need or want. It is no surprise, therefore, that most global tech giants are platform-based organizations. Even legacy organizations operating in areas like automobile and banking have recognized platforms as the future. They are transforming fast to keep pace with the rapidly changing tech and global business landscape.

(The author is Dr. Anil Kaul, CEO of Absolutdata (an Infogain company) and Chief AI Officer at Infogain and the views expressed in this article are his own)