Sustainable system transformation, rather than a transient response, is necessary for legacy system issues.

Among the challenges known as 'the 2025 cliff', the legacy system issue is applicable to many companies in japan. The problems of systems that have become bloated due to repeated function additions and bug fixes involve more than just increased maintenance costs. Constraints arising from aging IT systems can become a hindrance to management and business strategies. Even when attempting to address the issue, the inability to create an organization to oversee the whole can lead to efforts being stalled partway through, or remaining only with partial responses, leaving fundamental issues unresolved.

To achieve sustainable system transformation, it is vital to take a medium- to long-term perspective, looking 5 to 10 years ahead, overseeing the entire structure, and managing stakeholders without leaving anyone behind.
The first step for companies in japan should be to establish an Enterprise Architect (EA) organization to visualize the current system, present a roadmap to the desired grand design, and gain agreement from the management, thereby gaining an overview of the issues. Next, securing the budget for strategy execution, implementing a loosely coupled system structure, and establishing a mechanism for continuous governance to suppress further issues are necessary.
In the US and Europe, which lead global IT trends, EA organizations are also managing enterprise architecture and overseeing the design while looking at the entire system's consistency and future state, progressing toward solutions for legacy system issues.

Figure 1: Approach to solving legacy system issues through sustainable system transformation.

Source: NRI

Developing and applying a unique framework to continue promoting legacy modernization.

Based on the experience and knowledge gained from leading the modernization of systems for japanese companies, NRI has developed the EA modernization framework. This service supports the resolution of legacy system issues using this framework.
The EA organization views legacy system issues as part of the activities to maintain the system in a "Future Ready" state, meaning it can respond promptly to changes in business and technology, and works on the resolution. By doing so, the aim is to minimize the medium- to long-term costs and risks of the entire system.
The components of the EA modernization framework are as follows (Figure 2).

• ①

  Organizational design support: Designing the EA organization that leads legacy modernization and maintains the overall structure that the system should have.

• ②

  Architecture design support: Implementing a grand design that shows the ideal state of the entire system, along with architecture designs specified for individual themes such as modernization.

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  Roadmap formulation support: Clarifying the transition process to the desired state and developing a roadmap that ensures the consistency of resource allocation.

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  Governance operation support: Based on the architecture design and roadmap, providing technical guidance and evaluation while manifesting governance that accompanies the resolution of business and IT challenges.

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  Modernization run support: Managing stakeholders related to legacy system renewal and promoting multiple large-scale projects.

Figure 2: System of the EA modernization framework.

Source: NRI

Utilizing generative AI technology, the process from system consideration to development is expedited.

Furthermore, in the phase of executing the modernization of legacy systems, NRI leverages its generative AI technology to efficiently create systems that are easy to maintain and align with the grand design and policy.
Specifically, using unique technologies that leverage generative AI, such as "AI Redocument", which visually semi-automates complex data flows and workflows, and "AI Rewrite", which semi-automatically converts programs written in old technologies like COBOL to Java5, we will accelerate the cycle of the EA modernization framework.

NRI will continue to evolve this service, addressing the challenges faced by client companies struggling with legacy system issues, and realizing sustainable growth and enhanced competitiveness for japanese companies.

• 1

  ‘DX Report - Overcoming the "2025 Cliff" in IT Systems and Full-scale Deployment of DX’ (Ministry of Economy, Trade and Industry "Research Group for Digital Transformation" 2018)

• 2

  Enterprise Architect, EA: A professional who ensures the alignment of business processes and information systems to achieve the company's strategic goals, guiding IT investments for maximum returns.

• 3

  Modernization: The concept of modernizing or optimizing outdated IT assets such as aging systems and old processes from a business perspective.

• 4

  Future Ready: A state in which a company has achieved digitalization and is prepared for future growth.

• 5

  Java is a registered trademark of Oracle Corporation and its subsidiaries and affiliates in the USA and other countries.