New Multi-Decade Research Indicates Continual Modernization Programs are Key to IT Success

Rhea-AI Summary

Micro Focus (NYSE: MFGP) released findings from its 'Endless Modernization' study in partnership with Standish Group, highlighting the advantages of a continuous modernization approach over traditional rip-and-replace strategies. The study, based on over 50,000 data points, shows a 71% success rate in modernization projects compared to 26% for replacements. Additionally, modernization yields higher customer satisfaction and better returns on investment, setting it as the preferred method for enterprise digital transformation. This research underscores the value of incremental improvements in enhancing application longevity and performance.

Positive

• 71% success rate for modernization compared to 26% for rip-and-replace strategies.
• Modernization projects provide higher customer satisfaction with 55% satisfaction rates.
• Incremental flow-based methodologies yield double the value compared to other software development approaches.

Negative

• Only 27% of companies utilizing rip and replace saw high returns, with 41% reporting low returns.

SANTA CLARA, Calif., Dec. 2, 2020 /PRNewswire/ -- Micro Focus (LSE: MCRO; NYSE: MFGP) today announced the findings of its 'Endless Modernization' research with Standish Group. The research reveals modernization projects using an incremental and continuous improvement model achieve superior results when compared to other project-based approaches including the ripping and replacing of core business applications. The research utilizes data gathered from The Standish Group's CHAOS2020 Report and indicates that this infinite flow method to modernizing core business applications has a number of benefits in regards to return of value, customer satisfaction, sustainable innovation and longer application lifespans.

"As we see in our latest research with Standish Group, a continuous and multi-phased modernization methodology delivers incremental value and reduces risk when compared to the alternatives of rewriting or replacing," said Neil Fowler, General Manager of Application Modernization and Connectivity at Micro Focus. "With application modernization typically being an important first step in an enterprise's larger digital transformation journey, an incremental flow-based model provides a methodology capable of matching the flexibility of today's business climate while ensuring continuous transformative activity."

Conducted by The Standish Group, a primary research advisory organization focusing on software development performance, the multi-decade research of over 50,000 participants shows that an infinite flow model ensures ongoing modernization activity, while narrowing the gap between project management and delivery teams. This research is consistent with Micro Focus' own findings where 92 percent of core applications are strategic and 70 percent see modernization as their preferred option, according to a 2020 Micro Focus study.

Key findings of the Endless Modernization research include:

• Modernization Projects Yield Significantly Higher Success Rates: Companies replacing a software application and starting from scratch had a 26 percent success and 20 percent failure ratio as opposed to a 71 percent success and 1 percent failure ratio for teams choosing to modernize an existing application rather than fully replacing it.
• Rip and Replace Projects Struggle: Only 27 percent of companies choosing a rip and replace strategy saw a high return, with 41 percent reporting a low or very low return on their investment. In comparison, a flow-based modernization methodology returned twice the value on average than other types of software development approaches.
• Modernization is a Preferred Path over Ripping and Replacing: 45 percent of enterprises ripping and replacing their application software were ultimately disappointed or not satisfied by their results as opposed to 55 percent of organizations choosing modernization responding as satisfied.
• Incremental Flow-Based Modernization Approaches Have Numerous Benefits: Rather than running one large modernization project, research shows that enterprises incorporating a series of smaller, microservices or microprojects achieved much better outcomes.

"The demand is for more value, higher customer satisfaction, and lower costs," said Jim Johnson, founder, The Standish Group. "It is our opinion—based on our extensive research and observation of role models—that the move to infinite flow satisfies all three of these demands."

As digital transformation continues to drive strategic business change, Micro Focus helps customers run and transform their business by reusing and enhancing their unique and business-critical applications and data for a more pragmatic, low-risk and low-cost approach to modernization. An incremental approach to modernization, as introduced by the Standish Group, is proven to deliver faster time to value for organizations seeking to adapt established core business systems to new business requirements of the digital age. By helping organizations bridge now and next, Micro Focus has the experience and application, process, and infrastructure modernization solutions to enable innovation without added cost and risk.

Additional Information

For more information on the Endless Modernization: How Infinite Flow Keeps Software Fresh, register to watch our December 9^th webinar or visit our website for the full report.

Join Micro Focus on LinkedIn and follow @MicroFocus Twitter.

About Micro Focus
Micro Focus delivers enterprise software to empower 40,000 customers worldwide to run, transform, and adapt. With a comprehensive portfolio, underpinned by a robust analytics ecosystem, Micro Focus delivers pragmatic, customer-centric solutions to bridge the gap between existing and emerging technologies and enable organizations to achieve Smart Digital Transformation. That's High Tech, Low Drama. 

PAN Communications
Harper Schmidt
415-544-7200 
microfocus@pancomm.com

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SOURCE Micro Focus

FAQ

What are the key findings of Micro Focus's Endless Modernization research?

The research reveals a 71% success rate for modernization projects, significantly higher than the 26% for rip-and-replace approaches, indicating the effectiveness of incremental modernization.

How does the continuous modernization model benefit organizations?

It delivers higher customer satisfaction, better returns on investment, and enhances application longevity, providing a pragmatic solution for digital transformation.

What percentage of enterprises prefer modernization over ripping and replacing applications?

The study indicates that 70% of enterprises see modernization as their preferred option.

What does the research suggest about the future of software development?

It emphasizes the need for continuous improvement through incremental flow methodologies to meet evolving business demands.

How does Micro Focus plan to help organizations with digital transformation?

Micro Focus aims to assist customers by reusing and enhancing existing applications, focusing on low-risk and cost-effective modernization strategies.