Q: How does application modernization contribute to a company becoming a digital business?
Becoming a digital business can mean different things to various individuals and companies. Embracing digitalization entails having the capability and eagerness to harness both established and emerging information technologies to enhance business outcomes. It involves utilizing digital tools to not only optimize existing operations but also to transform the way a company conducts business and create new net revenue streams.
Application modernization empowers a company to embrace the digital business model by providing the flexibility, efficiency, and innovation needed to thrive in the digital age. It ensures a company can adapt, grow, and remain competitive in a rapidly changing business landscape.
Q: Can you describe the adoption of modernization at Avery Dennison?
One of our IT strategic priorities is delivering productivity through continuous operational improvements and safeguarding our invaluable assets. Our other strategies include fostering team development, enabling profitable growth, cultivating digital fluency and capabilities, and advancing sustainability.
To support our priorities, we introduced UNITY, our internal, cloud-first IT architecture framework, in 2019. UNITY enables a comprehensive suite of capabilities, emerging technologies, and software platforms designed to empower our core business processes and modernize our technology.
UNITY has facilitated an impressive return on investment by enhancing revenue, cost efficiencies, customer satisfaction, employee engagement, and sustainability. These substantial benefits are a testament to our strategic investments in information technology and underscore the value of IT.
Q: How does governance fit into your application modernization efforts?
Governance is integral to modernization. It assures the value of UNITY platforms, their adoption, management of IT-related risks, and control over information. Our governance framework ensures that IT consistently enables our overarching business objectives.
Governance plays a pivotal role in the application rationalization process. Firstly, effective governance ensures alignment between IT initiatives and the company's strategic objectives. This means that application leaders and their teams can prioritize applications that directly contribute to the organization's goals, improving operational efficiency, reducing costs, or enhancing product quality. By defining clear criteria and decision-making processes, governance helps avoid the proliferation of redundant or obsolete applications, streamlining the IT landscape and maximizing resource utilization.
Secondly, governance provides transparency and accountability throughout the application rationalization journey. It establishes a structured framework for evaluating and categorizing applications based on business value, technical debt, and security risks. This not only facilitates informed decision-making but also ensures that stakeholders across the organization are involved and aware of the rationale behind application changes. Additionally, governance mechanisms can enforce compliance with industry regulations and data security standards, reducing potential risks and legal issues. In essence, governance empowers IT and the rest of the business to navigate the complex ecosystem of application rationalization in a systematic, controlled, and value-driven manner, ultimately driving the company's success.
