Newsletter November 2017
Message from CEO
Keeping it simple.
Steven ten Napel
We live in a complex world, where change is a certainty and continuous disruption is the new normal. We are bang in the midst of the 4th Industrial revolution (I4.0) as it is happening, which in terms of scale, scope, and complexity is unlike anything the world has seen before.
Unlike the linear pace of earlier waves of disruption, this change is happening at an exponential pace, driven by digital accelerating technologies such as SMAC, IoT, AI, VR, Robotics, 3-D printing, Drones etc. Fusion of technologies is blurring the lines between physical, digital, and biological spheres, creating a pervasive impact on virtually every aspect of human life, in every industry, and in every country.
Dealing with this unprecedented disruption, and not to lose grip is a struggle for many, including businesses. Simply staying afloat without losing footing is no longer good enough in this hyper-competitive landscape. Businesses must not only survive, but also innovate their way forward, continuously.
Easier said than done.
How does one make sense of all that is happening around us? How do you know what is important and relevant? How do you make the right choices, take the right decisions, execute properly, in such a complex environment?
Imagine that you could see through this complexity, declutter and distil into something simple Imagine the opportunities that would bring. The legendary Steve Jobs said:
One needs to understand the complex, to derive simplicity and move forward. It’s our business to understand the complexity around us, and make it simple for our customers, so that they don’t lose grip, and can continue to move forward. With our unique blend of people, experience, and proven expertise in collaboratively creating sophisticated software products and platforms, we are proud to make this claim:
We help businesses Re:Imagine their possibilities in a complex world.
We now live in one of the most transformational periods in human history, and every facet of our life is undergoing exponential change. Enterprises are struggling to deal with the dual challenges of business model disruption, and technology disruption. Perhaps the impact of this disruption is most acutely felt by the software industry, due to its inherent vulnerability to innovation and technology changes. Thanks to a perfect storm of technology and business model disruption, there is intense pressure on software businesses to modernize their traditional products and services. Multiple forces are driving the demand for modernization of software products, which can be broadly categorized as follows:
- Unprecedented consumerization of IT, and demand from enterprises to embrace their digital journeys, and deliver amazing user experiences
- Demand to support anywhere, any-time, any-device access and availability with the right performance, security, and scalability
- Changing business models demanding a commensurate change in supporting technologies, software and services
- Emergence of new technology and architectural paradigms to support needs of the digital era
Software landscape is dotted with tens of thousands of traditional products, which still run on legacy technology stacks such as Power Builder, Progress, Delphi, FoxPro, COBOL and VB etc. Often, these products have a monolithic and tightly coupled architecture, making them very difficult to maintain and support. Very often it is also the case that these legacy products cannot support the current needs in terms of transaction-speed, event processing, and real-time data handling.
Modernization is not just moving from a legacy technology to a new stack, but it’s also about modernizing applications for the digital era.
- Traditional to Digital-Native: Traditional, standalone applications are becoming obsolete, and are getting rebuilt and replaced with digital-native applications.
- On-premise to SaaS: On-premise installations are being replaced with SaaS and cloud-ready applications using leading-edge services such as MS Azure, AWS, and Google Cloud.
- Monolithic to Microservices: Monolithic architectures and legacy technologies are giving way to micro-services and API-based architectures, and newer technology stacks such as: .Net, Java, Java Script, LAMP and MEAN.
- Products to Platforms: Isolated products are being replaced by a platform of products and services, where configurability, integrations, and functional richness to support multiple business processes, are key product considerations.
coMakeIT’s Technology Modernization services are designed to help you navigate this maze, make the right technology, architecture, deployment choices, and execute the appropriate modernization strategy. Choice of technology modernization strategy will depend upon multiple factors, such as:
- current software stack and application architecture
- target architecture and technology frameworks
- hosting environment
- resource availability
- time frame and cost
After making a thorough assessment of the current status, future needs, and also considering factors such as complexity, risk, and business need, an appropriate modernization strategy must be chosen, and some of the possible options are:
Using this modernization strategy, the underlying core business logic and data are left undisturbed, and the legacy application is re-deployed without any major changes, to a different hardware/software platform. In this option, usually, the middleware, database, OS and hardware are replaced, and this is often viewed as an intermediate step in the modernization roadmap.
In this option, internally the software is improved, while keeping the external behaviour unchanged. Usually in a refactoring exercise, the focus is on simplifying the code to make it more maintainable, and this usually tends to be a low-risk option.
In this option also known as re-engineering, fundamental changes are made to the code; parts of the existing system or application may be reused, while other parts are added, or substantially modified to create a more robust and easier to maintain application. This typically calls for major redesign of the application architecture, tends to be more expensive and riskier than re-factoring, and could involve methods such as porting and migration.
If one can afford, this is perhaps the easiest option to implement and legacy software is replaced with off-the shelf commercially available products, if they serve the business needs.
Develop a new digital-native application:
This is perhaps the most radical, high-risk, and expensive modernization option. If the effort involved and complexity in transforming the legacy application is far more than what is entailed in building a new digital-native application, and when the potential rewards outweigh the costs and risks, then this could be the preferred modernization option.
coMakeIT Blog Digest
Software-driven businesses are using co-Innovation strategies to overcome acute skill shortages, and drive growth.
Software-driven businesses must make the leap from building traditional software products to becoming complete digital platform vendors.
In the digital era, every software product will be delivered only as a service, and cloud will no longer be considered as disruptive, but will become the new normal.
Automation will lead to reinvention and innovation, but not extinction, and human effort and thinking traits such as innovation and creativity will become even more valuable.
Project-driven, transformational ICT initiatives are doomed to fail. An incremental, evolutionary, collaborative, product-driven approach will deliver rapid innovation, and help avoid the pitfalls of cost overruns and catastrophic ICT project failures.
A relentless focus on customer-centricity is the hallmark of success in the digital era. Businesses must reimagine customer intimacy and pursue a holistic strategy for achieving excellence in this key value discipline.
News you can use
Moody’s Investors Service (“Moody’s”) has upgraded the Government of India’s local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive. The decision to upgrade the ratings is underpinned by Moody’s expectation that continued progress on economic and institutional reforms will, over time, enhance India’s high growth potential and its large and stable financing base for government debt, and will likely contribute to a gradual decline in the general government debt burden over the medium term.
In Q3, the Norwegian economy expanded a seasonally-adjusted 0.7% from a quarter earlier, slowing markedly from the notable 1.1% growth recorded in Q2 but nonetheless confirming that the economic recovery was still firmly underway. This was largely attributable to the ongoing rebound of the country’s offshore oil and gas sector, which had returned to growth in Q2 after contracting sharply at the outset of the year. Meanwhile, mainland GDP, which excludes petroleum activities and related ocean transport, experienced stable growth in Q3 from a quarter earlier (Q3: +0.6% quarter-on-quarter), following a slight downward revision to Q2’s result (previously reported: +0.7% qoq).
Industrial production in Sweden rose a seasonally-adjusted 2.2% in September over the previous month according to Statistics Sweden (SCB), down from August’s revised 1.6% decline (previously reported: -1.7% mom). The increase was underpinned by greater output in the mines and quarries, manufacturing and electricity, gas, steam and hot water plants sub-sectors. On a year-on-year basis, industrial production grew 4.5% in September, up from 7.5% in August. Annual average growth in industrial production increased from 3.8% in August to 4.0% in September.
The consumer confidence index released by Statistics Denmark bounced back to 7.6 points in November, up from 7.1 points in October, following three consecutive months of declines. The indicator moved further above the crucial zero-point mark that separates optimism from pessimism among consumers, where it has remained since January of this year. The improved result was fueled by more favorable perceptions among respondents about the general economic situation over the next 12 months, their personal financial situation and savings in the coming months, along with decreased pessimism on future unemployment and the evolution of consumer prices.
Eurozone economies are firing on all cylinders, and growth is back up to levels not seen since 2011, and unemployment in the Eurozone has hit its lowest level since January 2009.
Will Australia’s ‘miracle economy’ keep on winning? If there was a podium for economic success, this is a country that would be bending forward to accept the award. More than 25 years of uninterrupted growth is a remarkable achievement.
India for the first time moved into the top 100 in the World Bank’s Ease of Doing Business global rankings on the back of sustained business reforms over the past several years. This was announced by the World Bank Group’s latest Doing Business 2018: Reforming to Create Jobs report. The report also recognizes India as one of the top 10 improvers in this year’s assessment, having implemented reforms in 8 out of 10 Doing Business indicators.
United States and India will co-host the 2017 Global Entrepreneurship Summit (GES), which will be held between November 28-30 in Hyderabad, India. The theme of the summit will be Women First, Prosperity for All, highlighting the critical role women play in fostering global growth and prosperity. Ivanka Trump, Advisor to the President, will lead the U.S. delegation.
“Today India is at the brink of a possibility of moving into 8 percent plus growth rate. Why? Because India has made a very bold step in integrating internally its nation into one market. So the shift into Goods and Services Tax (GST) is a tectonic shift,” World Bank Country Head in India Junaid Ahmad said at an industry event.
“Gartner’s top 10 strategic technology trends for 2018 tie into the Intelligent Digital Mesh. The intelligent digital mesh is a foundation for future digital business and ecosystems,” said David Cearley, VP and Gartner Fellow. “IT leaders must factor these technology trends into their innovation strategies or risk losing ground to those that do.”
No insurance company has yet completed a digital transformation – one that fully harnesses the power of digital technology to rethink every aspect of the organization. But a number of carriers are making remarkable progress, indicating the direction others should take.
To compete against digital disrupters, existing IT must be brought up to speed. Time for a fresh approach.