Legacy Systems Modernization Lessons Learned

Transcription

1 Legacy Systems Modernization Lessons Learned Government Technology Conference May 9 th, 2011 Dale Jablonsky CalPERS

2 Modernization Agenda 1. Building ud ga Business Case A. To Justify a new Modernization Project B. To Save existing Projects from Budget Cuts 2. Modernization Options A. Rip and Replace B. Piece meal Approaches C. COTS Software vs. Custom Development Solutions 3. The Value of Enterprise Integration A. Multi Channel Integration B. Paperless Workflow Integration C. Government to Government Integration

3 Building a Business Case Legacy Systems a Burning Platform The Definition of Sustainability Transaction Processing evolution CPU evolution Storage evolution Business Alignment and emerging Strategies Government Modernization

4 Burning Platform Obsolescence Factors 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) CostFactors Time andmoney Mission Criticality Business Agility

5 Sustainability Defined Aligned with Industry Trends (EA) Increasing Platform Innovation opportunities 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 steady

6 OLTP Evolution CPU Innovation oato Moore s Law Commoditization Wintel& Lintel Application Virtualization Processing as a Service (pay as you go) Storage Innovation Commoditization Solid State Disks Dt Data Virtualization ti Storage as a Service (pay as you go) Data Center in a box box grid computing

7 Business Alignment E Government Strategy Paperless Office Document Imaging Automated Workflows Responsive to Legislative Changes Integrated Services Business to Government (B to G) trends Government to Government (G to G) trends

8 Government Modernization California Government World s 7 th Largest Economy Volumes and Complexity State of the Art Government needs State of the Art AtSystems Do More with Less Mandate Enterprise Systems Enterprise Architecture Private Sector Competition

9 Taking IT to the next level Modernization Alternatives Srini Madala President/CEO SoftSol Technologies GTC West Sacramento May 9,

10 Agenda Modernization Factors Deciding Among Modernization Alternatives Doing More with ihl less Case Studies Lessons Learned

11 Modernization Factors Legacy Application Features Target Considerations Service Goals Better Service Collaboration Transparency Organizational Factors External Factors

12 Modernization Options Low budget Rehost Highly Customized Rewrite Auto Migration COTS Industry Standard Significant Enhancements COTS Migration (Auto/Manual) Rewrite Rh Rehost

13 Doing More with Less Modernization in Current Times Millennials Millennials The new generation Modernization Initiatives Budget Resources Budgets Resources

14 CDB/COMET Auto Migration Challenge Obsolete platform 30,000 transactions per hour Mission CriticalApplication Solution/Results Completed with no impact to business Low cost and reliable Mission Critical Application Risk mitigated for larger modernization initiative

15 Rewrite of Case Management tsystem Challenge Solution/Results Complete web based selfservice options 30 Yr mainframe COBOL Lacking critical functionality Limited Accessibility Seamless integration with DMV Better services to the public

16 Modernization Lessons Learned Support of Top Management Customer acceptance Lack of test cases/test assets Data cleansing User training i Latest technology need not be the most appropriate it Crafting the right methodology

17 Summary Challenge? Opportunity? Many alternatives Smart Choices THANK YOU

18 May 9 th,2011 Legacy Modernization o Lessons Learned Presented by Brian Sway Government Technology Conference - West CGI GROUP INC. All rights reserved _experience the commitment TM

19 Keep Focused On the Core Objective: How Best to Support Your Business Needs Search for combination of measures to rationalize your application portfolio to reduce cost, increase efficiency, and effectiveness As-is Portfolio To-Be Portfolio CGI GROUP INC. All rights reserved 2

20 Yes Modernization is Attractive, but Am I seeing the world differently than other organizations? What change is appropriate, how I prioritize? How can I justify a BCP in an all cuts environment? How can I manage the risks associated with a modernization project? Will I have the people and needed skills to support the transition and future state? CGI GROUP INC. All rights reserved 20

21 Motivations for Application Portfolio Programs Change Drivers Consolidate the portfolio for long-term savings 32% Find near-term, immediate expense reductions 29% Lay the foundation for future competitiveness 39% CGI Poll Long-term savings Short-term expense cuts Strategic Change Source: CGI Website Poll, 5/1/2009, 499 replies CGI GROUP INC. All rights reserved 21

22 Modernization is a Process of Portfolio Rationalization Not a one-size fits all question Retain current applications Renovate the applications Replace or retire the applications Re-engineer Technical Condition Retain Renovate Replace or Retire Business Value Re-engineer CGI GROUP INC. All rights reserved 22

23 Use a Disciplined Approach to Determine an Appropriate Strategy Application Portfolio Rationalization Assessment Prep & Planning Catalog / Inventory Categorize Evaluate / Recommend Cost & Roadmap Business Case Collaborative Process With Diverse Expertise Business Domain Knowledge Business Engineering Technology Governance Change Management Detailed Outcomes Current State Application Portfolio Enterprise Information View Application Inventory Rationalization Roadmap Business Case Cost / Benefit Analysis Payback CGI GROUP INC. All rights reserved 23

24 What does Portfolio Rationalization Translate into? We typically identify 10 to 30% savings in an organization s IT maintenance budget Enables organizations to spend less on maintenance & support, realigning expenses with reduced revenue levels, and/or reallocating IT dollars for business-critical initiatives Example of Decreases in Maintenance & Support Annual Budgets IT Budget: $150M Maintenance as % of Budget: x 73% Application Maintenance & Support: $110M Maintenance & Support Savings %: x 20% Savings $ $22M New Maintenance & Support Budget $88M New IT Budget: $128M CGI GROUP INC. All rights reserved 24

25 Managing the Risk of Restructuring a Legacy Portfolio Disciplined portfolio rationalization assessment helps 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 & scale, while reducing complexity & operational risk CGI GROUP INC. All rights reserved 25

26 HR Best Practices/Workforce in Transition Much more than crunching numbers and data Address the needs of your dedicated and valued employees who are the keepers of organizational knowledgeable Employee engagement & support Effective communication Inclusion Change management Skills assessment Cross training i / Retaining i 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 it CGI GROUP INC. All rights reserved 26

27 A Comprehensive Rationalization Program Due Diligence/ Analysis Transition/ Rationalization Wind Down Resource Reallocation/ Modernization Catalog/Inventory Categorize Evaluate/Recommend Roadmap Business Case Change management/ retraining/ retaining staff Acquire/Transfer knowledge Deploy/Operate Manage operational risk IP monetization Decommission applications and transactions Re-deploy freed-up resources Provide career growth opportunities Positioned for the future CGI GROUP INC. All rights reserved 27