This document summarizes a presentation by Zylog Systems Ltd on their approach to modernizing legacy applications. Zylog discusses industry trends driving organizations to modernize, challenges with outdated systems, and Zylog's methodology using tools to analyze code and estimate migration efforts. A case study is presented on Zylog modernizing a point of sale system from PowerBuilder to JEE to support a retailer's growth to over 450 stores. The project delivered cost savings, improved processes, and enabled the client's expansion plans.
2. Key Speakers
Srinivasan Raghanathan Kamlesh Shah
Practice Lead, Zylog Systems Ltd Program Manager, Zylog Systems Ltd
Kamlesh is an experienced IT professional with 25 years of
delivering business benefits through effective project &
programme management. Prior to working with Zylog,
Kamlesh held various management roles with the insurance
and finance industries, to include Coverpoint, Santander,
CitiGroup, and NRG.
Kamlesh is highly experienced in managing stakeholders,
internal/outsourced teams and third party
suppliers/integrators. During his tenure with Zylog since 2008,
Kamlesh has led major application migration projects which he
drives through Zylog’s global development and delivery
centres.
www.zsl.com
3. Agenda
• Introducing Zylog Systems Ltd
• Industry Trends on Modernisation
– CIO Agenda – Modernisation
– How end of life Product support is affecting Enterprises
– Why Modernise
– Business Value
• Zylog’s Approach to Legacy Modernisation
– Tools Set (demo the tools and reports)
– Methodology
• Case Study
www.zsl.com
4. Zylog – 15 years of Evolution
2008 - 2011
5 companies acquired
2009-10 2010-11
2008-9
$219m $400m
$151m Turnover
Turnover Turnover
2007-8
$153m Turnover
4,000+
people
2006-7
$93m Turnover
2007
2004 Zylog IPO through Zylog – Growing &
Zylog Europe BSE/NSE
Profitable,
incorporated
1996 Routes to market:
Opened ODC – Chennai - Direct - Serving Enterprises
Opened USA office
- Indirect partnering with other IT services
companies
www.zsl.com
5. Worldwide Office Locations
Zylog (Europe) Limited is based in Mansell Street, Aldgate
4000+ Developers (Java, .NET + Legacy, OpenSource)
www.zsl.com
10. CIO Agenda
• Gartner predicts that by the end of 2010 more than 1/3 of application projects will arise as a
result of tackling outdated technology and skills
• The scale of obsolescence in the set of portfolios is a major problem in its own right
– compounded by the lack of integrated planning capability within many IT teams
• IT modernisation cannot be addressed as a short-term panic-response project
– As it is large and complex and requires the wholehearted commitment from IT
management team and many of the business clients as well
• Gartner said modernisation is needed as IT systems and services are too slow to respond in
a fast enough manner, compounded by a market that is becoming increasingly more
crowded and complex
www.zsl.com
11. CIO Agenda
• Furthermore, IT departments historically tried to squeeze as much value as possible from
older systems even if they fail to deliver modern standards of functionality
• Other recent Gartner research highlighted the fact that CIOs are struggling to drive their
businesses forward
– Due to lack of control as a result of too many people being involved in the decision
making process
CIOs clearly have a role to play in redressing the balance. "The scale and
complexity of the issues means that IT modernisation is a CIO agenda item and will
remain a CIO agenda item for the near future
www.zsl.com
12. How End of Life(EoL) Product impacts you
• Overdependence's increases maintenance cost
• Continue investing into the product
*
• Frequent investments into upgrades
• Architectural inflexibility
*
• Cannot adapt to business changes.
• Too slow when compared to business competitors
*
www.zsl.com
13. General Application Options
(New build) (Refurbish) (Extend)
- Brand new custom app - Partial SDLC -Least Effort
- Full SDLC - Less Effort -No escape from
- Use of best available - Faster legacy code
Architecture & - Restricted Scope - new code + Old code
technology --Brand new app - Poor roadmap
-Nuts to Wing Nuts -Add new features &
functionalities
www.zsl.com
14. The problems with COTS Packages
Highly Invasive to Av ERP system costs
business operation £0.5m to licence
Highly invasive to IT Av ERP system costs £0.5
procedures to implement
Causes organizations to Av ERP system costs £5m
/bend’ to suit the package to maintain over its lifetime
Benefits lower than Benefits lower than
expected expected
Costs higher than Future flexibility is limited
expected by the ERP vendor
www.zsl.com
15. Why Modernise
Protects the investment made in the legacy
application (Business Logic)
Delivers a brand new application (no legacy code)
Provides flexible, capable, new-technology platform
Low Risk (Re-implementing existing app)
Minimizes business disruption
Uncertain Product Roadmap
www.zsl.com
16. Why Modernise-Migrate
Innovation Risk Cost
No Change Low High High
New COTS Med/High High High
Modernise/Extend High Low Low/Med
Modernise/Migrate High Med Med
www.zsl.com
17. Business Value
Language Component
Extensibility
Productivity Re-Use
R
O
I
Cost Development
Hours Risk
www.zsl.com
19. Business Objective
The expansion in app usage
in new countries will make a
big contribution to European
operations (€m)
Not ideal to roll out a 20+ PB
year old application App
Easier and better to roll out a
new web application.
21. Application Modernization Framework
Transfor
Set-Up
Legacy Target System
Intermediate Object
m
System
Model
Java
Stage 5 - Modernize
Stage 1 - Assessment
Visual Basic
Templates
As-is To-Be C#
Transformation
Platform
Stage 4 – Re-
Oracle Forms
Preparation
To-Be System
Oracle Pro*C
Stage 2 -
Stage 3 -
System
Legacy
Design
Design
Target
Factor
Power Builder Database
Architecture
Parser
Progress 4GL JEE
Infomix 4GL .NET
Tooling
Foxpro ADF
Workbench
Language
Rational Design &
Delphi SOA
Development Tools
Access / VBA RIA
Eclipse Visual Studio
www.zsl.com
22. Rewrite vs. Migration – SDLC Comparison
Migration Using
Rewrite Manual Migration
Smartprise
Requirement J2EE .NET
Analysis Application study Application study Application study
High Level Design High Level/
Low Level Design
Low Level Design
GUI Design GUI Design
Construction
Migration
Migration
Migration
Testing Testing
Testing Testing
User Acceptance User Acceptance User Acceptance User Acceptance
www.zsl.com
23. Migration Toolset
Tools Benefits Key
Deliverables
Tool-based analysis provides
accurate estimates for planning.
Business Process
PB-Code AnalyzerTM Tool-base migration increases
Document
accuracy, reduces human errors,
PB-EstimatorTM Application Inventory
speeds up migration and
PowerMigratorTM checklist
consistency.
System Design Document
Application bottlenecks
Architecture Design
identified, upfront – unused
Document
codes / Level of inheritance fine
Project Plan
tuned. This helps reduce future
maintenance cost
24. PowerMigrator - Automated Estimation
Effort Estimation and Proposal Generator
1 3
Zylog App Assessment Workshop Report
Application
Run Object or Code Analyzer Windows
Client
DataWindows
2 Global Variables
Code Analyzer Functions
PowerMigratorTM Events
PowerBuilder Menus
Object &
Application Structures
Code Analyzer Generate
User Objects
Report
.txt file, .psr files
5 4
Estimation Report Effort Estimator Mail to
Zylog
Zylog
Summary Report PowerMigratorTM
Generate
Automatic Effort
Effort
Detail Report Estimator Tool
Estimation
6
Produce estimation
32. In Summary:
Reliable
Predictable
Repeatable
Futuristic
www.zsl.com
33. Why Zylog’s Modernisation Services?
Saves 30-50% of time and effort involved in rewrite
Re-usability of 50-60% of your legacy application codes and
reducing up to 30% of your capital investments on new technologies
Automated migration processes with minimal human intervention-
minimal or no errors
BPM enablement for automated business processes-more business
flexibility and agility and optimized resource capitalization
SOA technologies bringing in line the business and IT with greater
interoperability and seamless interaction
Cloud enablement expertise
TCO is slashed by 40% and ROI is doubled within a short span
www.zsl.com
35. About Client
• Rent-to-own retailers of electricals,
white goods and furniture
• 180 stores – 21 new last year
• 146,000 customers
• Revenue of £170m (up 16.9%)
• 13.9% like-for-like revenue growth
• Strategy for growth – 450 possible
new sites have been identified
36. Business Problem
• Current store systems would constrain the
Client growth to 200 stores as the overnight
process would fail
• Store system runs on isolated local store
servers which are expensive and prone to Store system constraint
at 200 stores
failure
Store 1 Store 3
Overnight (Projected max store growth figures)
Store 2 replication
Store 4 etc...
to Head
Office There was no replacement
“off the shelf” system available that
• Other issues with the old system:
could support the unique Customer’s
– Drive inefficient store processes
business model
– Costly to open new stores due to
infrastructure requirements
37. Project Opportunity
• The core objective of project was to transform Web
Web
the point of sale (POS) system into a Store 3
Store 1
centralised and easy to use system that will
support future store growth
Web Web
• The project also allows the opportunity to... Real time
web
Store 2 Store 4 etc...
interface to
– Improve the efficiency of existing in-store Head Office
processes
– Support future flexibility of the business Store servers to be
(future enhancements) removed and recycled
– Improve usability and reduce training
requirements
– Improve reliability and reduce the support
Project provided the unique
and maintenance costs
opportunity to overhaul the core store
system which supports 80% of store
processes
38. Approach
11 months
Dec ‘08 Jan‘09 Nov ‘09
• Detailed analysis of the legacy system • Rigorous integration • Required upgrade
• Analysis and
• Significant enhancements built on legacy and performance to company wide
prioritisation of all
functions to simplify user training testing web training portal
business and IT
requirements but maximise in-store benefits • Application and • Staff from 180
initiatives
• The system was defined and built module- infrastructure stores fully trained
• IT strategy
by-module to allow live testing throughout the suitable for rapid on new system
supported by the
whole business project store growth
• Underpinned by infrastructure upgrade
39. Results
Old System New System
Web Web
Store 1 Store 3 Store 3
Store 1
Web Web
Overnight Real time
Store 2 replication web
Store 4 etc... Store 2 Store 4 etc...
to Head interface to
Office Head Office
• Decentralised system limits store growth • Centralised web system enables store growth
• Inflexible functionality inhibits future development • User friendly screen design
• Complex to use and train new users • Flexible to business needs and cheaper to support
40. Business Benefits
Growth Benefits Business Case
• Project was required for Client to grow beyond 200
stores as current system constraints were a “show
Benefit
stopper”
• The success of Project means that Client can continue
to grow stores without minimal investment in POS
systems
• Additional revenue from new stores would increase Payback in
£7m+ NPV
Benefits
turnover by £200m per year by 2013 under 1 year
• This benefit is not directly measurable and was not
Year 5
included in the business case
Year 4
Year 3
Year 2
Efficiency and Cost Benefits
Year 1
• Improved system infrastructure and centralisation of the
system will save £5m in license and support costs over
the next 5 years Time
• Store efficiency benefits * will allow store staff to spend Costs
more time serving customers, improving debt
management and driving increased sales – this will £1.4m
increase profit by £7m over 5 years
* estimated by study of time and motion in-store
41. Store Feedback
Store feedback has been hugely positive and proven benefits in-store:
“New system has made the end to end sign up process so
much quicker – 50 mins down to as little as 30!”
“Navigation of the system is very user friendly - this will
makes much easier for new users “
“Great for searching stock, by region and nationwide”
“Customer transfers are a lot easier – this will save a lot of
time”
“The system automatically moves through the process in
steps, great!”
(all from everyday store users)