DALLAS, TX - Nov 3

Presented by:

Building Your Own Modernization RoadmapEmmanuel Tzinevrakis

VP Professional Services

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Three Key Points to Retain

￭ IBM i applications and data contain tremendous value￭ Modernization drives business value￭ There is a Modernization Strategy for everyone

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Topics

￭ Value of Your IBM i￭ Business Value Creation￭ Modernization Strategies￭ Planning Your Modernization￭ How to Get Started

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Leveraging Your IBM iApplications and Data Modernization

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Why invest in IBM i

￭ Modern secure platform￭ IBM commitment with roadmap and support for

mainstream solutions including open source￭ Years of business critical information in your systems￭ Leveraging existing investment is proven to be faster,

lower risk and more cost effective

Replace with PackageReplace the current system with a new one.

ModernizationExtend, Evolve, or Transform the application to newer technologies.

RewriteRewrite the applications in their entirety.

Do NothingLive with the challenges and adapt.

Strategic Options for IBM i Applications Do Nothing, Modernize, Replace or Rewrite

Sources: Standish Group

Legacy Application and Data Challenges

Medium BusinessChallenges

Outdated interfaces, Remote access, Onboarding new staff

Lack of innovation, Integration with desktop and external systems

Access to data, Real-time information, Data integrity

Retiring staff, Lack of skills, Attracting new talent, IT Backlog

Developer and IT productivity, Monolithic code base, Time to market

Process improvement, Document distribution, Workflow automation

Non standard or mainstream languages, Portability

User Experience

Extend Business Functionality

Data Access

Resource /Business Continuity

IT Efficiency / Productivity

Streamline Business Process

Maintainability / Agility

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Modernization Business Goals

Agility

Reduce training / onboarding

Lower costs / increase profitability

Drive innovation for competitive benefit

Enable new channels of access

Merger and acquisition integration

Compliance (SOX, HIPAA, etc.)

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Technical View of Modernization

￭ GUI / Web Enablement￭ Mobile Access￭ Workflow Optimization

￭ Code restructuring / modularization￭ RPG-Free Format￭ Code Transformation

￭ DDS to DDL￭ Data accessibility (long names, data model, reporting, etc.)￭ Data integrity (foreign key constraints, data cleansing)

User Interface (5250)

Code / Business Logic

Database

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Modernization is a Unique Journey

￭ Unique Starting Point(languages, technologies, apps)

￭ Unique Destination(target technology stack, packaged apps, etc.)

￭ Uniquely staged to the needs of your organization

￭ Executed in a model that matches your needs

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Business Value CreationHow do my modernization goals align to business goals?

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Aligning to Business Value Creation

What does the business get out of it?

Move from an IT-centric perspective to a business-centric one

Existing IT budgets are rarely adequate to fund mid-to-large scale modernization initiatives

The business will need to sponsor and fund the project

A professional and strategic approach to the business is required

So… what business problems are you solving?

What is the Return-On-Investment to the business?

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SAMPLE – Business Value Creation Exercise

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SAMPLE – Modernization Project Sequencing

New Order Entry

Interface

Move to Real-Time

Optional:Print Engine

Replacement / Optimization

Modernize DB and Back Office App.

Value Creation:Reduced operating costsReduced printing costsImproved workflowImproved data qualityFaster new user on-boarding

Value Creation:Improved data qualityImproved data timeliness

Value Creation:Business flexibilityClient servicing

Value Creation:Reduced IT costsReduced operating costsImproved agilityImproved resource avail.

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Sample Modernization – GUI Improvement

Increased customer retention

Increased productivity

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Sample Modernization – Mobile Access

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Sample Modernization – eCommerce

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How to Create Business Value

￭ Creating Value▶ Enabling new or incremental revenues▶ Saving money that translates into improved profits

● Improve workflows, save on resources

▶ Enabling new markets or increased market-share

￭ It needs to be measureable and defendable￭ Why does the business need this and who will fund it

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Descriptions of a Modernization Plan

Business Value Description:￭ Moving to a low-cost, open platform to

run our business will reduce operating costs by 20% per year with mid-to-long-term costs savings on resources.

￭ Business workflow will be optimized and we should be able to see a decrease of 10% in data entry positions and 75% reduction in onboarding time of new staff.

￭ Time-to-market on new products and revenue-generating features will be cut by 60%, enabling us to innovate quicker and more easily respond to competition.

Technical Description:

￭ Transforming our system to xx low-cost platform and yy feature-rich database.

￭ Web-based user interface with a focus on a new user experience.

￭ Restructured, modern code that anyone can maintain.

￭ Integrated security

￭ Improved data integrity and data accessibility.

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Modernization StrategiesThere’s a plan for everyone.

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Challenges With Modernization Projects

￭ Knowing where and how to start

￭ Having a complete understanding and map of the existing systems (modules, programs, data, dependencies, etc.)

￭ How to find the time

￭ Having the right skills

￭ How to plan such projects

￭ Knowing what tools and approaches exist in the market

￭ Getting funding and organizational support

“The pace of change has never been faster and the need for IT to predictably deliver has never been higher.”

Finding the Right Strategy

Application ModernizationStrategies & Solutions

Maintain

Modernize

Replace

Application Support Services

GUI, Services & Mob. Enablement

Automated Conversion

Code Transformation

Re-architecting / Re-engineering

Re-write

Packaged Application

Strategy Solution

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Adopt a Portfolio-based Approach

Application Module Modernization Strategy Rationale Timeframe

Accounting Packaged Replacement Non-Unique 2 years

Payroll Outsource Non-Unique 12 months

Shipping & Receiving Basic Modernization 12 months

Tracking & Logistics UI, Desktop integration, workflow optimization, business enhancements

Does not meet current business needs. Cumbersome workflow.

6 months

Materials Management Basic Modernization 2 years

Inventory UI, workflow optimization Needs intuitive workflow 6 months

Supplier Management TBD Will work with business to refine needs

12 months

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PlanningHow do I develop a modernization plan?

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Take a Phased Approach to Modernization

￭ Organizations don’t like to invest into multi-year programs where the benefits only appear at the end.

￭ Create a milestone-based plan

￭ Establish a quick (and visible) win to show early success

￭ What does the business get “along the way”

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SAMPLE – Phased Modernization Strategy

DB Modernization

(basic –long names)

UI & Workflow Customizations

Published Data Model

(transparency & accessibility)

Rapid Web Enablement

Web Services(expose business

functions)

Code Refactoring

(maintainability and agility)

DB Modernization(for integrity and

security)

Reporting Data Mart

Data Access Modularization

(& record set processing)

Stage 1: Non-invasive, quick wins

Stage 2: Transformation, Strategic Investment into Improving Business Agility

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SAMPLE – Project Timeline

Start 12M 24M6M 18M

Stage 1:New Order Entry

Stage 2:Real-Time Push

Stage 3:App & DB Port

Stage 4:Print Eng. Repl.

Proven Approach to Successful Modernization

Define Goals Measures Implement

Aligning Business and ITUnderstanding the business

needs, the current environment, creating a strategy, plan and

budget that aligns IT and business goals.

Defining SuccessIn order to achieve success,

it’s important to define it. This phase captures goals and

metrics that will measure the performance of the plan and

success of the effort.

Where to StartWhere are we starting? This

phase focuses on aligning and staging the plan in order to achieve desired business

outcomes.

ImplementationCarrying out the plan

according to the resources, skills, bandwidth and

experience. In-house or outsourced.

Continuous ImprovementImplementing and adopting new processes, procedures, tooling,

skillsets and capabilities to improve agility and keep IT at the forefront of technology within the

organization.

Plan Improve

Modernized Applications = Increased Business Value & New Opportunity

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Planning Approach for GUI and Mobile Enablement

1. Engage with the users

2. Think outside the IBM i

3. Focus on User Experience

4. Create Quick Wins

5. Adopt Agile

1 2 3 4 5Engage Think Focus Create Adopt

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Planning Approach for Large-Scale Modernization

￭ Large-scale modernization projects require sizable funding and organizational support

￭ Organizations expect results and predictability

￭ Many businesses have experienced failures, have shaken confidence in IT’s ability to manage and deliver

￭ For IT leadership, these are high risk / high reward projects (Career makers or career breakers)

￭ IT leaders must invest in building strong business cases, validated by experts

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Getting Organizational Support & Funding

￭ What does an organization want to see to fund and support a large-scale project▶ A clearly articulated business case▶ Supported by details (current state, future state, how = plan, resources,

timeline, milestones, costs, spending schedule, scope, risks and mitigations, alternatives researched, rationalization)

▶ How it aligns to creating business value and the future of the business▶ Milestone-driven plan, with funding gates▶ Thorough research, validated by experts▶ Executive sponsorship

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What do you need to gather / build?

InventoryProject Plan

Strategy / Approach DocumentBudget

(and Spending Schedule)

Exec-level Presentation

￭ Scope

￭ Strategy and approach￭ Resourcing￭ Tools

￭ Costing

￭ Defining value to business (staged)

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Managing Risk

￭ Choosing less risky modernization paths and strategies

￭ Breaking up the modernization project into smaller pieces

￭ Proper project planning

￭ Understanding all the costs (hardware, software, services)

￭ Skill set requirements and acquiring them (hiring, training, contracting)

￭ Risk and contingency planning

￭ Finding the right partner(s) – experience, breadth of knowledge

￭ On-going executive buy-in and support

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Start NowWhat do I do Monday morning?

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Getting Started – The next 2-4 weeks

Step 1: Seek input from line-of-business application stakeholders

Step 2: Develop a Portfolio Strategy straw-man▶ What apps are in the portfolio?

▶ Define a timeframe

▶ Define / draft what modernization looks like for each app in the portfolio

▶ Define / quantify the Business Value of your strategy

Step 3: Seek external validation on strategy and approach.

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Three Key Points to Retain

￭ IBM i applications and data contain tremendous value￭ Modernization drives business value￭ There is a Modernization Strategy for everyone

Questions?

Emmanuel TzinevrakisVP Professional Services, Fresche

Emmanuel.Tzinevrakis@FrescheLegacy.comwww.FrescheLegacy.com

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