Today, IT leaders are under pressure to modernise legacy systems while balancing cost, speed, and minimal risk. While strategies like the 5Rs and continuous modernisation offer valuable frameworks, the challenge remains: how can organisations drive innovation and business growth without disrupting critical operations during the modernisation journey?
While “big bang” modernisation strategies promise rapid transformation, they often lead to cost overruns and resistance from internal teams.
Instead, there’s a smarter way to modernise while delivering measurable business value at every step. The answer is incremental modernisation.
Adopting an ‘Incremental Modernisation’ Strategy
Incremental modernisation is a strategic approach where legacy systems are updated in small, manageable phases rather than “all at once.” Each phase targets specific applications, services, or domains, enabling quick wins and reducing the risk of disruption. This approach allows organisations to:
- Gradually adapt with minimal business disruption.
- Spread costs and effort over time, reducing financial risk.
- Test, learn, and refine strategies as they go.
- Realise faster ROI and improve agility in responding to business needs.
Why Incremental Modernisation is Gaining Momentum
Recent studies reinforce the success of this approach:
- A 2023 study at APSEC highlights how incremental modernisation reduces risk in legacy systems by enabling gradual improvements.
- In the banking sector, incremental modernisation helped reduce IT maintenance costs by 40% while enhancing customer experience, as per a Boston Consulting Group report.
- A McKinsey study also highlights the direct cost benefits of incremental modernisation. As technologies evolve, costs of modernisation is coming down. The report highlights how a US $100mn modernisation project now costs almost 50% of that, thanks to GenAI and data engineering advancements.
How Merit’s Phased Modernisation Approach Reduces Risk
Merit supports incremental modernisation through a proven, phased methodology tailored to each client’s needs. Our four-stage approach ensures modernisation efforts are aligned with business objectives while maintaining stability and minimising risk:
- Fitment Analysis to Identify Low-Risk, High-Impact Areas
- Assess legacy systems based on business criticality, technical debt, and ROI potential.
- Start with non-critical applications or reporting systems to validate modernisation strategies without disrupting core operations.
- Modular Code Conversion with AI-Powered Tools
- Gradually refactor legacy codebases (e.g., COBOL to Python or Java) using Merit’s LLM-driven code conversion utilities.
- Achieve 60% reduction in manual effort and seamless migration to cloud environments with no downtime or business disruption.
- Agile Deployment with Test Automation & DevSecOps
- Enable continuous testing and integration using Merit’s Test Automation Framework.
- Integrate real-time security monitoring and frequent, low-risk releases through DevSecOps pipelines.
- Result: Faster time-to-market, improved system stability, and early detection of vulnerabilities.
- Gradual Scaling to Complex Domains
- Expand to modernise data pipelines or customer platforms after initial successes.
- Reduce technical debt, improve system performance, and gain flexibility to adapt to evolving business needs.
Growth with Stability: The Key to More Effective Modernisation
Incremental modernisation allows organisations to balance growth and stability:
- Quick Wins: Early successes build momentum and stakeholder confidence.
- Lower Costs: Spreading modernisation investments over time reduces financial strain.
- Scalability: Modern components can be scaled independently, supporting business growth without rework.
- Future-Ready Systems: Modular, cloud-native, and AI-enabled updates position organisations for long-term agility and innovation.
Achieving Quick Wins + Long-Term Stability: 5 Key Points to Remember
To successfully modernise incrementally, organisations should:
- Start with low-impact, high-value applications.
- Adopt a modular, API-driven architecture for flexibility.
- Leverage AI-driven tools to reduce manual effort.
- Automate testing to ensure quality at every stage.
- Implement a secure DevSecOps pipeline for continuous deployment.
Start with a Low-Risk Pilot: Merit’s Consulting Framework
Merit encourages businesses to take the first step towards modernisation with a low-risk pilot programme. Our consulting team helps identify the best entry points, develop a tailored roadmap, and execute initial phases using our robust modernisation frameworks.
Ready to modernise without the risk? Connect with Merit to explore how an incremental approach can deliver growth with minimal risk – starting with a pilot designed for success.