How to Achieve Agility for Success in the Application Economy Date:   Tuesday , October 28, 2014 How do companies stay ahead in the marketplace? How do you keep up? Everything ages over time, some things - like fine wine, art or cheese - even age better with passing time. Your technology? Not so much. When is the last time you tried to send a FAX (remember those?), or tried to check your email through your flip phone? Probably not so convenient - or timely - or efficient. Why use a flip phone when you can use a smart phone? They both deliver the same end user experience. But the latter makes it experience all the more richer, provides more capacity and makes communicating more efficient - to name a few. So why hang onto your old software? What may have met your needs in the past, more than likely does not meet your needs today. Thankfully, technology offers newer methods and versions that make doing the same \'old thing\' - better, faster and more efficient. CIOs do not have the resources to spend on innovation - they often feel trapped because they are spending 60 percent of their budgets just keeping the lights on. This does not leave much wiggle room for new thoughts and innovative project spending. If you are really smart, you need to re-balance your IT spend to the areas that provide the most ROU. Savvy business leaders accept that shifting revenue to innovation or at the very least keeping your IT investment current and by funding new innovation - is a great path to increased revenue and growth performance. In this new application economy, software is increasingly being used to transform business models and drive new go-to-market opportunities. Understanding the underlying dynamics of this emerging market is key to staying competitive and relevant in business. In fact a recent *survey, asked participants, \'What is the impact of modernized versus non-modernized enterprise software on business performance metrics?\' The research clarified the underlying relationships between enterprise software modernization (improved agility, reduced cycle time, less maintenance and increased savings) and business result. The study asked IT decision makers about this concept if modernization and the conclusion was that up to date IT management systems enable faster product and application development cycle times, which in turn show higher revenue and profit growth potential and contribute to a better bottom line. Organizations of various sizes were surveyed and, faster-growth companies reported having average product cycles that were 35 percent shorter than slower-growth companies. IT application development cycles of faster-growth companies were also 29 percent shorter. The study looked at three areas of enterprise software: systems of records, which support internal operations such as HR and finance; systems of engagement, which support the acquisition, servicing and retention of customers; and systems of IT management, which support development, operations and management. Out of the three, product cycle times were most closely linked to the level of modernization of systems of IT management. Organizations in the top third for modernized systems for IT management had product planning and release cycles that were 15 percent shorter than those in the bottom third. What is causing this result? According to Forrester, firms reporting higher levels of modernization in their systems for IT management likely are the ones that have already invested in the tools to ensure that their technology is operating both efficiently and effectively. The visibility of and control over their systems likely allows them to react to business needs, adding the desired agility and allowing faster product cycle times. The bottom line is: investments in keeping these foundational systems current enable longer-term flexibility for the business to respond to market changes. Getting your systems and solutions up to date can positively impact your bottom line. Five steps identified in the study that help contribute to a successful software-enabled business include: 1. Connecting software quality to brand value 2. Evaluating application impacts on agility and flexibility 3. Modernizing crucial systems of technology management 4. Adopting modern application development and delivery practices 5. Measuring business returns on software modernization It is simple math: Significant benefits can be achieved by modernizing your software and IT investments. Successful software modernization is crucial to your business and the roadmap is simple. Begin by assessing your level of modernization and determine what percentage you feel is modernized by domain and which is supported by businesses processes. Next, evaluate whether budget and personnel resources are being best deployed supporting software at lower levels of modernization. Finally, consider how to extend the life of existing on premise assets through upgrades that align to business needs through mobility, better use and access to data, and capabilities that increase agility. Still want to use your old flip phone? Flip it up, put it down, and let go of that old technology that is keeping you rooted in the past. Evolve your software and evolve your organization\'s path to success. *A commissioned study conducted by Forrester Consulting on behalf of CA, \"Enterprise Software Modernization And Business Performance,\" March 2014.