What to do when a system stops providing the value that your business needs and an immediate change is necessary? Replacing such a system is usually the first idea that comes to mind. However, is it the only and the best approach you should consider? Not necessarily!

1. Software systems modernisation
- a better option to their replacement
Michal Petřík, Head of Software Development February 24th, 2021

2. Questions and polls
https://www.sli.do
event #2854

3. 3
Contents
1. The challenges
2. Choosing the right approach
3. Case study

4. 4
About Me
Michal Petřík
› Software Engineer
› Fullstack Developer
› Team Leader / Project / Delivery Manager
› Head of Software Development at Profinit
› 15+ Years Experience With Software Systems Modernisation
Contact:
mpetrik@profinit.eu
www.linkedin.com/in/mpetrik-41442895
@Profinit_SW

5. Typical challenges

6. 6
Typical Challenges

7. 7
Typical Challenges

8. What are typical business challenges
today?
ⓘ Start presenting to display the poll results on this slide.

9. 9
Typical Challenges
Poor Digital Business Support
− Systems lacking support for new business models or channels
Changing Requirements
− Systems not fit-for-purpose anymore, poor UX, …
High Pace of Change
− Systems being slow to change, risky and costly to change
Compliance Risks
− Aging technologies, unsupported platforms, skills shortage
Maintenance Costs
− Systems with huge technical debt, poor code quality

10. How has
it happened…?

11. 11
How Has It Happened…?
› Users are in 7 countries now | system has been designed for 1
› Business has grown | system has not
› Requirements have shifted | system has not
› Required development capacity was 10 FTEs | now it is 50 FTEs
› Technical debt used to be acceptable | now imposes bussines risks

12. Which situation are you familiar with?
ⓘ Start presenting to display the poll results on this slide.

13. Why Has It Happened…?
… a lot of "harmless"
decisions along the way…

14. Time to replace?

15. 15
Six Key Drivers
Demand
(Business)
Supply
(IT)
Fit Value Agility Cost Complexity Risk
Digital Business Support
Changing Requirements
Higher Pace of Change
Technical Debt
Aging Technology
Time, Cost & Risk of Change
Unsupported Platforms
Skills Shortage

16. 16
The Root Cause
Fit Value Agility Cost Complexity Risk
Functionality Architecture Technology
Demand
(Business)
Supply
(IT)

17. 17
Continuous Systems Modernisation
…why bother and not just replace?
› Cost, Risk and Impact?
Rip and replace whole systems:
Too costly, risky, time-consuming; high impact to the business
› Business Cannot Wait
We cannot wait for everything to be transformed or modernized
› No-one Can Predict Future
It is hard to predict and design services upfront
Continuous delivery requires continuous modernisation | even new systems

18. 18
Are We Talking About
Monolithic Systems?

19. 19
Are We Talking About
Monolithic Systems?
Where does it end?

20. 20
Continuous Systems Modernisation
The key is to identify friction points and modernize them

21. 21
Continuous Systems Modernisation

22. 22
Continuous Systems Modernisation

23. 23
New Systems Become Legacy Too
... simply said: that assumption is absolutely wrong
 new systems need to be continuously modernised too
… unless you want to have the same problem every few years
"We are going to have a new system, therefore no further investments."
 Fit, Value, Agility  Cost, Complexity, Risk
Year 3 Year 5

24. How old are your core systems?
ⓘ Start presenting to display the poll results on this slide.

25. Use Case

26. 26
BNP Paribas Wings Core System
› Core non-life insurance system for 3 countries
› Hard to replace but also hard to maintain
› Two approaches applied:
– Profinit‘s Takeover methodology
– Continuous modernisation
2012
Poor system quality
2-3/2013
System assessment
3-7/2013
Transition to Profinit
7/2013
Full service
2016
Rollout to 4 new countries
4/2020
Engaging new countries

27. Summary

28. 28
Summary
› Think twice before ripping out and replacing the whole system
› Continuous modernisation offers a lot more options (safer/faster)
› How to modernise?
› Find the real root causes (friction points)
› Choose the best strategy for the particular case
› Plan  Execute  Evaluate  Repeat
› Modernise continuously (make sure everybody understands it)

29. Audience Q&A Session
ⓘ Start presenting to display the audience questions on this slide.

30. Questions?

31. Profinit EU, s.r.o.
Tychonova 2, 160 00 Prague 6 | Phone + 420 224 316 016
Web
www.profinit.eu
LinkedIn
linkedin.com/company/profinit
Twitter
twitter.com/Profinit_EU
Facebook
facebook.com/Profinit.EU
Youtube
Profinit EU
Thank you
for your attention