IT modernization: a business-critical priority

Gert de Jong, Kim van Wilgen & Marco Verstegen
June 30, 2025 · 2 min read English

Business doesn’t wait. Neither does disruption. In today’s climate, challenges don’t arrive one at a time—they show up all at once and often reinforce each other. Whether it’s tightening regulations, cybersecurity threats, or shifts in customer demand, organizations need to be ready to act, not react.

The technological foundation must keep pace with these changes or even lead them. The reality is this: a fragmented, outdated IT landscape holds businesses back. If your foundation can’t scale, adapt, or support new business models, you’re exposed as a business. That’s why IT modernization is no longer an optional technical project—it’s a business-critical priority. A modernized IT landscape—one that supports strategic decision-making, fuels innovation, and improves operational efficiency.

Put simply: IT must serve the business.
As we enter the fourth industrial revolution and industries face significant redefinition of their business, outdated IT solutions can become significant obstacles to growth and even survival. Despite its critical importance, many organizations continue to perceive IT modernization as merely a standalone IT technology initiative rather than embedding it as a core business strategy. This perspective underestimates the strategic value of modernization and misses an important opportunity for progress.

Start with the business, not the tech
The most impactful modernization efforts are guided not by technology alone, but by a clear strategic purpose. They begin by asking the right questions: What business outcomes are we aiming for? Where do current processes create friction? And how can technology become an enabler of long-term value?

Taking a business-first approach allows organizations to phase out outdated processes, intentionally reduce complexity, and ensure that technology investments are aligned with broader enterprise goals.

We’ve seen real success when business and IT teams co-create from the outset—leveraging focused concept sprints to sharpen priorities, build shared ownership, and accelerate decision-making.

IT modernization empowers digital transformation
Modernization is the backbone of digital transformation. Without it, initiatives like cloud computing, automation, and AI remain siloed experiments that fail to scale or deliver lasting impact.

We often see organizations attempting to modernize around fragmented legacy systems find that transformation efforts stall. Data remains trapped in silos, automation is patchy, and cross-functional solutions are difficult to implement. But when the core IT architecture is cleaned up and aligned with business strategy, everything starts to connect. Cloud-native platforms, microservices, and event-driven architectures enable real-time data flows, faster development cycles, and scalable operations.

It’s not about chasing the latest technology—it’s about creating a digital foundation that is fit for purpose, resilient, and ready to support evolving business demands.

Ultimately, true digital transformation happens at the intersection of technology and strategy. And when modernization is done right, it doesn’t just support change—it drives it.

Prepare, not just respond
There’s no shortage of external pressure—whether from regulators, customers, or attackers. But there’s a big difference between scrambling to respond and having the infrastructure in place to adapt calmly.

IT Modernization gives that confidence. When systems are modular, data architecture is clean, and the security posture is built into the stack, organizations can respond to change without scrambling. They are not patching holes—they are adapting by design.

That’s why we approach modernization with a risk-first lens. Start by identifying what’s vulnerable. Build resilience. Then extend that into opportunities for innovation.

According to Gartner, nearly 70% of boards have accelerated digital business initiatives in response to disruption. But acceleration without modernization simply increases fragility. You can’t drive transformation on a fragile foundation.

Businesses that embrace a flexible, cloud-native IT foundation gain the flexibility to scale, pivot, and integrate emerging technologies seamlessly. This shift moves IT from a support function to a core strategic driver—where data flows effortlessly, automation accelerates efficiency, and systems are built for growth.

Let go of what no longer serves
One of the most powerful outcomes of modernization is clarity. You get to see which systems, processes, or products are no longer aligned with your goals—and let them go. It’s about simplifying the landscape to increase speed and reduce cost.

Legacy systems may still “work,” but that doesn’t mean they’re helping. They often come with hidden costs: duplicated data, inconsistent processes, security risks, and lengthy release cycles. Modernization helps untangle the spaghetti, giving you more control over your data flows, pipelines, and dependencies.

More importantly, it lets you redirect resources away from maintenance and towards value creation. That’s where innovation starts: when your best people are solving business problems, not managing technical debt.

Why speed without alignment fails
Moving fast is good. Moving in the right direction is better.

We’ve seen many transformation efforts rush into adoption without alignment. Teams get stuck in effort-based models, delivering features and projects without clear business impact. That’s not modernization—that’s motion without momentum.

At Schuberg Philis, we believe in “diagnose before you prescribe.” That means defining success together, setting clear outcomes, and measuring real business value—not just progress on a roadmap. It also means creating synergies between IT and business—working together, not in sequence.

That’s where modernization becomes sustainable: when it’s rooted in shared understanding and executed with discipline.

The true value of modernization
One of the biggest challenges in IT modernization is the difficulty of quantifying its immediate impact. Unlike direct revenue-generating initiatives, modernization’s benefits unfold over time. However, the long-term advantages are undeniable: faster go-to-market strategies, enhanced security, improved customer experiences, and greater resilience in case of attacks.

Companies must shift from short-term cost analyses to long-term value creation. A business case alone should not drive modernization efforts. Instead, leadership must recognize IT modernization as a strategic enabler, not an IT cost center. The shift from seeing IT as a supporting function to an integral part of business strategy is what separates industry leaders from laggards.

McKinsey shows that companies with modern IT achieve revenue growth twice as high as their peers. That’s not a coincidence. When technology works as an enabler, everything moves faster and with less friction.

A future-proof strategy
IT modernization is not just an operational necessity—it is a fundamental enabler of sustained competitive advantage. Organizations that embed modernization within their strategic roadmap do more than adapt to change; they drive it.

A future-ready IT foundation strengthens resilience, security, and agility—core capabilities that determine an enterprise’s ability to navigate disruption and capitalize on new opportunities. While the immediate returns may not always be quantifiable, the long-term value is clear: accelerated innovation, enhanced risk mitigation, and the flexibility to scale in alignment with business objectives.

The real differentiator lies in mindset. Organizations that position IT as a strategic asset—rather than a cost center—lay the groundwork for sustained growth and market leadership. The question is no longer whether modernization is necessary, but how effectively and decisively it can be executed to secure the future.

The question is no longer whether modernization is necessary. It’s how decisively you can execute it to secure your future.