5 reasons why your Modernization Process needs Business Area Involvement.

There’s no doubt about it: modernizing large applications is among the most challenging projects for any company, regardless of sector. Outdated technologies, loss of control over legacy systems, coexistence models, coupling... These projects face not only complex technical and organizational challenges but also require significant investment.

These risks are well-known to any company embarking on such projects, yet there’s something often overlooked: the need to actively involve business stakeholders to ensure the modernization succeeds. Yes, modernizing large applications and core systems is also a business matter.

A few days ago, we discussed how disconnects between IT and business can impact modernization projects. Today, we’ve compiled the main reasons why involving business stakeholders is a guarantee for success.

1 . Ensuring the delivered software gets used

This is the most obvious reason. The final result of modernizing a large application or core system is software intended for actual use (clients, internal users from various business areas, etc.). It has long been proven that overlooking end-user needs in software development is a direct path to failure.

When modernizing an old system, two common pitfalls emerge when users are excluded:

• Assuming the current system needs to be replicated as is.
  This is rarely true. Often, this belief arises because no one has asked the business team what challenges the current tool presents or which needs remain unmet. Asking business stakeholders might seem like an added effort or cost, but it’s usually just as expensive to replicate the current system as it is to improve it.
• Assuming IT knows perfectly what’s needed.
  While IT might know how business processes are implemented, they often lack insight into how they’re actually used, the frequency of use, external tasks performed, or pain points. Gathering this information first-hand avoids misunderstandings and ensures that business needs are met effectively.

Ignoring this principle can lead to massive failures where entire projects, often costing millions, are scrapped because they don’t align with business needs.

2 . Preparing the company for current and future challenges

The outcome of a modernization project is not designed to last just one or two years. It’s expected to serve the company for decades. While this is clear when planning new technological solutions, it’s often overlooked on the functional side when businesses simply ask for “what we already have.”

• A modernization project is an opportunity to proactively address the company’s future challenges: competition, innovation, operational efficiency, and diversification. Two reasons for this are:
• The modernization process will take years, and these challenges will arise before completion.
• If the software is meant to last for years, it needs to be adaptable to future needs, not become a limitation.

Achieving this is impossible without ensuring continuous business involvement throughout the modernization process.

3 . Ensuring project continuity

Modernization projects consume significant company resources, in both financial and human resources. While they might start within the IT perimeter, they inevitably impact the business side sooner or later.

If business stakeholders aren’t involved from the beginning, they will face unforeseen problems when the modernization inevitably impacts them. These might include:

• Changes in workflows without prior consultation.
• Halted initiatives due to IT capacity constraints.
• Functionalities that the new model doesn’t support but are critical for business needs.

Such issues can erode organizational support, leading to reduced budgets or deprioritization of modernization efforts.

4 . Optimizing the modernization budget

Facing the modernization of a system can be overwhelming due to the significant cost and time involved. While it’s impossible to predict exact figures, you don’t need all the answers upfront in an annual budget allocation model.

Modernizing an entire system doesn’t have to be an all-or-nothing decision. Instead, breaking it into independent parts with identified value allows for prioritization based on business impact. This approach enables better budget management while ensuring a transparent return on investment.

Moreover, demonstrating measurable benefits of these investments facilitates securing additional funding from leadership.

5 . Empowering IT by delivering constant value

Closely related to the previous point, breaking the system into parts aligned with business processes allows for constant, measurable value delivery. This strengthens IT by creating clear traceability between new technological assets and their business impact.

With this transparency, IT can communicate achievements in a way that’s understandable and indisputable across the organization, highlighting the value achieved through modernization efforts.