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 November 4th, 2020

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

3. 3
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

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

5. Typical challenges

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Typical Challenges

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Typical Challenges

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

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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…?

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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?

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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

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

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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

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Are We Talking About
Monolithic Systems?

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

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

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Continuous Systems Modernisation

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Continuous Systems Modernisation

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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

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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

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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