Modernisation Missteps: The Future Is Built, Not Patched

By Dr. Ritesh Jain

For over two decades, I have had a ringside view of industries valiantly grappling with one of the most intractable quandaries of our time: legacy modernisation. Whether one observes banking, retail, healthcare, or manufacturing, the narrative remains dishearteningly familiar. Organisations, often in the throes of optimism, allocate millions—nay, billions—towards upgrading their antiquated systems, only to find themselves ensnared in the same labyrinthine errors that have bedevilled their predecessors.

The reality, often obfuscated by technical jargon and managerial hubris, is that modernisation is not merely a technological pursuit; it is a holistic reimagining of a business’s very foundation. Alas, too many organisations attempt to slap a digital veneer over structural inadequacies, labouring under the illusion that incremental patches suffice. They do not. Let us explore where the cracks appear and how they might be sealed with strategic sagacity.

Recurring Catastrophes - The Anatomy of Failure

In 2019, Hertz—a name synonymous with car rentals—stumbled into ignominy. The company made headlines, not for market triumphs but for suing a technology vendor. Hertz had earmarked $32 million for an ambitious digital transformation project aimed at delivering a seamless, multichannel customer experience. The outcome? Deadlines were missed, expectations remained unmet, and a lawsuit unveiled the fundamental flaw: the endeavour was approached as a technology project, not as the strategic overhaul it was meant to be.

Hertz’s debacle is but one amongst many cautionary tales. Across industries, organisations fall into a predictable pattern of missteps:

Myopic Focus on Technology, Neglect of Strategy

All too frequently, legacy modernisation is relegated to the confines of IT departments. The focus becomes singular: upgrading infrastructure, migrating to the cloud, or implementing the trendiest technology. What is sorely missing is alignment with overarching business objectives.

Consider the example of a prominent global bank. Over the course of a decade, it poured billions into incrementally updating its core systems. By the time this Herculean task reached its conclusion, much of the technology had already become obsolete. The bank, in its pursuit of short-term fixes, failed to pose the existentially critical question: How does this investment enable us to compete, innovate, and respond to future disruptions?

Data, the Neglected Stepchild

Legacy systems are notorious for trapping data within isolated silos, rendering it inaccessible and underutilised. However, in the haste to modernise, organisations often migrate this fragmented data without cleansing, integrating, or optimising it. The result? Modern systems running on suboptimal data—an oxymoron in the making.

GE’s Predix platform exemplifies this folly. Envisioned as the epitome of industrial IoT, the platform faltered under the weight of fragmented datasets and legacy inefficiencies. The lesson is unequivocal: without a coherent data strategy, even the most sophisticated technology will crumble into irrelevance.

Incrementalism - The Comfort Zone That Stifles

Incremental changes may appear prudent, ostensibly minimising disruption and financial strain. Yet, this piecemeal approach often culminates in a patchwork of systems that are neither modern nor cohesive. The costs of maintaining such Frankenstein-esque architectures frequently eclipse the cost of bold, transformative action.

A Fortune 500 manufacturer serves as a case in point. Its phased attempt to modernise supply chain systems unraveled under the pressures of geopolitical shocks and sustainability imperatives. The company realised, belatedly, that playing it safe was, in fact, the riskiest strategy of all.

Underestimating the Human Element

No amount of technological wizardry can compensate for neglecting the people who must wield it. Organisations often deploy sophisticated systems while failing to prepare their workforce for the cultural and operational shifts that these entail.

Take, for instance, Target’s ill-fated expansion into Canada. The retailer’s ERP rollout was marred by inadequate training and poorly adapted processes, resulting in inventory mismanagement and operational chaos. Within two years, the venture collapsed, and Target exited the Canadian market, haemorrhaging $2 billion in the process.

The Strategic Shift - A Blueprint for Success

Over years of observing these recurrent failures, I have distilled a fundamental insight: modernisation is not a mere exercise in upgrading systems; it is an act of business transformation. The organisations that succeed are those that approach modernisation with foresight, resolve, and a clear understanding of their objectives.

To illustrate, let us examine three paragons of modernisation done right.

DBS Bank - The Alchemy of Customer-Centric Innovation

When DBS Bank in Singapore embarked on its modernisation odyssey, it did not commence with technology. Instead, it began with an audacious question: How do we make banking invisible? This vision, centred entirely on the customer, propelled DBS to adopt cloud-first and AI-driven solutions.

The result was transformative. From seamless contextual banking to hyper-personalised financial services, DBS redefined what it meant to be a bank in the digital age. Modernisation, in this case, was not an end unto itself but a means to revolutionise customer experience.

Netflix - The Virtuoso of Continuous Reinvention

Netflix’s transition to the cloud was not merely a cost-saving measure; it was a masterstroke of strategic foresight. By embracing a microservices architecture, Netflix gained unparalleled agility, enabling it to refine personalised recommendations, enhance streaming quality, and rapidly experiment with new features—all without interrupting its core operations.

Herein lies the lesson: modernisation must pave the way for perpetual innovation. Netflix’s success was not just about upgrading—it was about reinventing.

Amazon - The Apotheosis of Composability

Amazon’s adoption of microservices epitomises the power of composable architectures. By dismantling its monolithic e-commerce platform into hundreds of independent services, Amazon unleashed a torrent of innovation. From Alexa to AWS, this modular approach allowed Amazon to diversify and scale with breathtaking efficiency.

The Road Ahead - Building, Not Patching

Modernisation, when executed thoughtfully, is nothing short of alchemy. It transmutes legacy constraints into opportunities for growth and innovation. To embark on this journey successfully, organisations must adhere to the following principles:

Start with the Customer: Let customer needs guide your modernisation strategy.

Prioritise Data: Clean, integrate, and govern your data. A solid data foundation is non-negotiable.

Embrace Composability: Opt for modular architectures that enable agility and scalability.

Invest in People: Equip your workforce to adapt and thrive in the new environment.

Conclusion - The Courage to Transform

In my over two decades of experience, one truth stands out: modernisation is not for the faint-hearted. It requires audacity, clarity of vision, and a willingness to challenge entrenched norms. The organisations that flourish are those that see modernisation not as a technical endeavour but as a strategic imperative.

To paraphrase an age-old adage: the future is not inherited—it is built. And those who dare to build boldly will reap the rewards of resilience, agility, and enduring success.

Dr. Ritesh Jain is a globally recognised expert in financial services, technology, and digital transformation. He has spent over 20 years guiding organisations across industries towards innovation and sustainable growth.