Future-Proof Your Data Modernization Strategy: 5 Essential Steps

Modernizing data infrastructure is a necessity. 

With 83% of executives acknowledging that data and application modernization is central to their business strategy, companies that delay risk falling behind [IBM, Modernizing applications on hybrid cloud, June 2023]. 

In fact, four out of five organizations are already upgrading their processes to accelerate digital transformation [IBM, Modernizing applications on hybrid cloud, June 2023]. 

The benefits? Organizations that have fully modernized their AI-led operations see 2.5x higher revenue growth and 2.4x greater productivity compared to their competitors. [Reinventing Enterprise Operations Survey, 2024] 

If you’re looking to stay ahead, you need a modernization strategy that stands the test of time. This blog breaks down how to build a data modernization strategy that not only solves today’s challenges but scales for tomorrow’s opportunities. Here’s how to do it right. 

Source: IDC’s Data Modernization Services Buyer Perception Survey, 2024 

1. Align Your Strategy with Business Goals

A one-size-fits-all approach won’t cut it. Your modernization efforts must support your organization’s broader objectives. Ask yourself:

• What business challenges are you addressing with modernization? 

• Are you looking to improve customer experiences, enhance operational efficiency, or scale AI capabilities? 

• How does data modernization fit into your company’s long-term vision? 

Start with a clear roadmap that connects your modernization efforts to tangible business outcomes. This ensures that investments yield measurable returns rather than becoming expensive tech upgrades with no strategic impact. So, define measurable objectives early and clearly. 

Blackbuck Insights (BBI) modernized a global retailer’s infrastructure by migrating outdated on-prem applications to a public cloud and upgrading data and BI platforms. This shift involved moving large volumes of historical data along with implementing SLA-driven SRE and DevOps. As a result, the retailer achieved 99.9% platform availability, reduced resolution times by 70%, and lowered manual work by 30%. 

2. Adopt a Phased Approach to Minimize Risk

Big-bang transformations rarely succeed. Instead, consider a step-by-step approach that minimizes disruption and delivers value incrementally. 

• Assessment: Conduct a thorough evaluation of your current data landscape. 

• Prioritization: Identify high-impact areas that deliver quick wins. 

• Execution: Implement changes in phases, ensuring minimal business disruption. 

• Evaluation: Continuously monitor results and adjust accordingly. 

By modernizing in stages, your organization can adapt to emerging trends and avoid costly missteps. 

3. Invest in Cloud and Hybrid Architectures

If you are looking for agility and scalability, look no further than cloud platforms. While moving to the cloud may seem daunting, a hybrid approach offers flexibility while leveraging existing investments. 

• Public Cloud: Ideal for scalability and AI-driven analytics. 

• Private Cloud: Ensures greater control over sensitive data. 

• Hybrid Model: Combines the best of both worlds, allowing gradual migration. 

A leading credit bureau needed to modernize its outdated legacy system, enhance data processing, and streamline dispute resolution while improving data governance. BBI migrated the system to a cloud-based infrastructure, introduced API-driven processes for seamless data exchange, and upgraded the Universal Data Access (UDA) framework with real-time data streaming and advanced search algorithms. 

This transformation resulted in a more agile and cost-effective system with a significant reduction in infrastructure and software licensing costs, improved efficiency, and zero downtime due to infrastructure upgrades, decision-making, and customer experience. 

4. Embed AI and Automation for Scalability

The role of AI in data modernization cannot be overstated. Companies that have successfully integrated AI into their processes report 3.3x higher success in scaling AI-driven initiatives. [Reinventing Enterprise Operations Survey, 2024] 

To make the most of AI: 

• Automate repetitive tasks like data cleansing and categorization. 

• Use AI-powered analytics to derive actionable insights. 

• Implement intelligent data governance to ensure compliance and security. 

AI-driven modernization enhances productivity and helps organizations make real-time, data-backed decisions. 

5. Ensure Security and Compliance from Day One

Data modernization without a security-first approach is a ticking time bomb. Protecting sensitive information should be a top priority, especially as cyber threats evolve. 

Best practices include: 

• Encrypting data at rest and in transit. 

• Implementing zero-trust security models. 

• Regularly auditing compliance with industry regulations. 

By embedding security measures early in the modernization journey, businesses can mitigate risks while maintaining customer trust. 

Final Thoughts 

Future-proofing your data strategy is about making deliberate, strategic choices that position your business for long-term success. By aligning modernization efforts with business objectives, adopting a phased approach, leveraging cloud solutions, embedding AI, and prioritizing security, you’ll be well on your way to staying ahead of the curve. 

The question isn’t if you should modernize; it’s when and how. 

BBI is dedicated to guiding our clients towards their modernization goals by offering strategic advisory services, thought leadership, and top-tier resources. We provide proven patterns and best practices to ensure a seamless and successful transformation. 

Ready to future-proof your data?  Sign up for a demo to learn more. 

References:

1. IBM Institute for Business Value (IBV)  Modernizing applications on hybrid cloud, June 2023, Pg 5 
2. IBM Institute for Business Value (IBV)  Modernizing applications on hybrid cloud, June 2023, Pg 7 
3. How reinvention-ready companies are driving growth and relevance with gen AI, Reinventing Enterprise Operations 2024 Report, Page 11
4. Gartner, Enhance Your Roadmap for Modernizing Business Through Technology, 2021, Pg 2 
5. IDC MarketScape: Worldwide Data Modernization Services September 2024 Vendor Assessment, Data Modernization Services Buyer Perception Survey, 2024