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_experience the commitment TM
Legacy Application Transformation
Leveraging past investment to build future success
Jan 2011
2
Market data indicates that Legacy Application Transformation
will be a critical activity in the next 5 to 10 years
• Legacy Applications continue to dominate an organization’s portfolio (North America and Europe):
> 310 billion lines of legacy code (65% of total SW)> $2 trillion (USD) worth of Mainframe applications that house 70% of all
critical business logic and data> 5 billion lines of new code are being written every year
• More than 50% of the resources maintaining these systems will be retiring between 2010 and 2020
• Approximately 60% - 70% of IT budgets goes to maintaining Legacy Systems
•Customers expect real-time, consolidated information that is available in a self-serve (e.g. online) environment and customized products/services.
•Rapidly changing regulatory frameworks require agility in back-office platforms.
http://www.davistech-llc.com/Microsoft%20NAMS%20Presentation%20Sacramento.pdf, cited Dec. 2010
“A Workable Application Modernization Framework is Job No. 1 Now”
56475, Forrester Research Inc, April 26th 2010.
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2/3’s of the IT budget is spent maintaining status quo, leaving
only 1/3 to move the business forward
“A Workable Application Modernization Framework is Job No. 1 Now”
56475, Forrester Research Inc, April 26th 2010.
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High staff attrition and turnover threaten the loss of legacy
business knowledge held by apps and SMEs
“A Workable Application Modernization Framework is Job No. 1 Now”
56475, Forrester Research Inc, April 26th 2010.
5
Global delivery model – onshore, nearshore,
offshore
Local client
proximity model
115+ proprietary
business solutions
31,000+ IT and BPS
professionals;
5,000 in Ontario
100+ offices in
16 countries
$4.5B Cdn
annualized revenue
Customer satisfaction
score of 9 out of 10;
loyalty score of 9.1
End-to-end IT
Services
One of the Top 8 pure
play providers of IT
services globally
$13.6B backlog
*Scored out of possible 10, as measured by customers according to CGI ISO 9001 certified customer partnership management framework
Canada’s only global IT professional services provider.
Largest local presence in the industry.
CGI Overview
6
• Leading global firms
in aerospace, metals
& mining and
chemicals
• 450 oil and gas
clients
Manufacturing
• 7 of top 10 telecom
firms
• Solutions in 34
major North
American utilities
Telecom and
Utilities
• All major Canadian
banks
• 24 of the top 25
banks in the
Americas and 17 of
the top 25 in Europe
• 8 of top 10 US P&C
carriers and 25+ life
insurers
Financial Services
• 100+ Canadian
federal departments
and agencies
• 9 of 10 Canadian
provinces, all
territories
• 100+ U.S. agencies
and 44 states
• Agencies in Europe
and Australia
Government and
Healthcare
• Partner to 250+
retailers across
North America
• Provider to
distributors in
multiple segments
Retail and
Distribution
CGI Builds Long-Term Relationships in Focused Industries
7
It is critical to improve business agility and reduce costs and
risks related to legacy systems and processes
http://hubpages.com/hub/Application-Rationalization--Modernization-Strategies-for-Investment-Bank-IT-Division
“The March Toward Insurance Claims Automation”, 40546, Forrester Trends, February 8th, 2007
“With 50% - 70 % of bank's IT investment still in legacy technologies…IT needs to
be sure that most of business critical functionality is out of legacy technology
between 2015 and 2020 (modernization) and also that it exists in re-usable form
(rationalization).”
“Many processes are still based on old legacy or manual systems, and insurance
workers spend a large amount of time on associated routine interactions that have
little or no impact on the outcome of a claim. The use of multiple, old, or legacy-
based claims systems creates a series of business inefficiencies and
challenges…”
8
CGI has developed a Legacy Application Transformation
Framework to help our clients respond to these pressures
•The Legacy Application Transformation Framework identifies and addresses
challenges relating to legacy IT environments and the processes that they enable.
•The framework is comprised of six phases, each of which delivers proven
services relating to Business Transformation, Business Process Management and
Technology Services.
•It allows CGI to tailor offerings to clients that can be as specific as documenting
the business and technical functionality of one application or as far reaching as
enabling and delivering a strategic transformational program.
Discovery AssessmentLegacy
Transformation
Roadmap
Legacy
Application
Documentation
Transformation
Delivery
Sustainment &
Management
Technology
Bus. Process
Management
Business
Transformation
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The Legacy Application Transformation Framework can be
applied entirely as a program or as individual engagements
•The Legacy Application Transformation Framework is built upon discrete services and offerings that can be delivered independently or together as a long-term transformational program.
•It identifies the activities and deliverables that address technology, process and business transformation and are required to successfully overcome legacy related challenges.
Project A
Project B
Project C
Legacy Application
Transformation Program
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BP
MB
TT
ec
hn
olo
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Legacy Transformation Framework
Phases Discovery Assessment Legacy TransformationRoadmap
Legacy ApplicationDocumentation
TransformationDelivery
Sustainment & Management
Phases may be iterative as a Roadmap and Strategy are executed over a period of timeObjective Articulate
Current State Define
StrategyDefine
RoadmapBaseline Application
KnowledgeExecute Modernization
RoadmapEnsure
Continued SuccessActivities
Document IT landscape Define target state for IT architecture
Define application treatmentDefine modernization timeline and milestones
Validation and enhancement of existing documentationCreation of technical & business documentation
Project delivery of: Legacy Retirement, Migration, Conversion, Enhancement, Extension (SOA), and Re-Architecting
Managing, Monitoring, Refining and Enhancing Application Environment
Review business strategy, objectives and key success factors
Identify transition plans and impacts to IT and business
Detail Change Management PlanFinalize KPI, KSF and business benefits
Develop Training and Communication/ Documentation
Develop and Implement Benefits Realization ProcessesImplement Organizational Model
Ongoing change management support and ImplementationOngoing benefits realization support
High level process environment overview
Inventory current state processesProcess health check diagnostic assessment
High level future state process definitionOpportunity identification and assessment of benefits
Detailed future state process definition
Execute process migration Implement transition to future state
Ongoing sustainment of revised processes
DeliverablesTechnology InventoryTotal Cost of Ownership Stakeholder Analysis, Industry Trends and Competitive Analysis
Scope, Vision and Value PropositionArchitecture Roadmap (4 - 7 year)High Level Business Case Risk mitigation plan
Modernization Roadmap (1 – 3 year)Application BlueprintRefined Business Case IT HR Recommendations
Application BaselineTechnical and Business Documentation
Application/Service Design, Development, Testing and ImplementationSDLC and PMLC Artefacts
Governance Model for Factory Development Processes and Application Management Procedures Documentation and Knowledge Management
Business Transformation Strategy
Business Transformation Plan
Change Management Strategy and PlanBenefits Realization Strategy PlanOrganizational Design Plan
Communication and Training Documentation
Organizational (Roles/Responsibilities) Documentation
Benefits realization support
Stakeholder engagement and organization level process context mapping
Detailed current state process analysis and documentation
Future state process documentationDetailed work plan and benefits realization plan
Detailed future state process documentation Implementation transition plan
Implementation of designed processes
Process sustainment methodology integrated into operating environment
Typical Timeline 1 – 3 weeks 2 – 4 weeks 4 – 12 weeks 2 – 12 weeks 3 – 12 months OngoingPricing Model Fixed Price Fixed Price Fixed Price T&M/Fixed Price T&M/Fixed Price Fixed Price
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Clients are driving towards strategic goals driven by Legacy
Application Transformation…
Clients include 24 of the top 25 banks in the Americas and
17 of the top 25 in Europe, 6 of the top 10 global property
and casualty insurers, and 25+ life insurers.
Providing Legacy
Application
Documentation services
to a Canadian bank
through a major
transformational
initiative over a multi-
year program.
Delivering the final
phases of a multi-year,
strategic Legacy
Modernization effort for
one of Canada’s leading
insurers.
Delivering
Modernization Services
converting over 4 million
lines of COBOL to C# to
enable business
strategy and reduce IT
costs.
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…and are realizing immediate benefit while working towards
these goals
Immediate Benefits
Strategic Goals
• Improve business agility, time to market and regulatory compliance
• Enable business self-serve architecture
• Enable customer self-serve architecture
• Enable customer-centric architecture
• Redirect budget from support/maintenance to value-add activities
• Improve transparency and relationships with business partners
• Reduce risk of unrecoverable system failure
• Unlock system and business knowledge and expertise
• Reduce costs and achieve consistent project success
• Reduce risk of loss of skilled workforce via churn and retirement
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How Legacy Application Transformation fits into the larger
picture
14
Each project is delivered with a tailored approach and mix of
onsite, Global Delivery Capability and automation tools
Automation
Tools
CGI Onsite
Engagement
CGI Global
Delivery
Capability
Experienced in Legacy
Application Transformation
across most languages
and platforms.
Legacy Application
Transformation successfully
delivered to numerous clients
across a variety of industries.
Leveraging CGI’s established
frameworks, capability and
expertise delivering
Transformation initiatives.
Full service capability including
Business Transformation and
Application Management with
Legacy Application Transformation
Incorporating leading edge evolving tool capabilities.
Tool agnostic approach allowing the selection of the best-of-breed to match the
specifics of the engagement.
15
Our established Consulting Service Lines are used to deliver
Legacy Application Transformation
Transformation starts with discovery and continues through to sustainment to ensure the strategic value and long term success of change.
Discovery
Assessment
Legacy
Transformation
Roadmap
Legacy
Application
Documentation
Transformation
Delivery
Sustainment &
Management
•Technology Inventory
•Stakeholder Analysis
•Business Strategy & Operations
•Scope, Vision & Value Proposition
•Architecture Roadmap
•High Level Business Case
•Modernization Roadmap
•HR Plan & Recommendations
•Process Future Mode of Operations
•System & Business Documentation
•Application Code Baseline
•Detail Business Case
•Application Delivery
•Process Implementation
•Training and Knowledge Transfer
•Capability to Support, Enhance and
Integrate Systems and Business
Services
PeopleBusiness
Transformation
TechnologyIT Strategy and
Solutions
ProcessBusiness Process
Management
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Established and proven IT services form the basis of the
Legacy Application Transformation Framework
Service Definition
Legacy
Migration
Legacy
Conversion
Legacy
Enhancement
Legacy
Extension (SOA)
Legacy
Re-Architecting
Provide migration to a new platform that is more robust
and/or scalable.
Conversion of Legacy Application, e.g. COBOL to J2EE,
Assembly to COBOL; conversion validation services.
Identify and eliminate redundant or problematic code; re-
face legacy applications with modern UI.
Service enablement on legacy platform through extension
and introduction of SOA based services as an overlay.
COTS or development to replace Legacy functionality and
services with an improved architecture (e.g. SOA).
Legacy
Retirement
Impact analysis, data retention strategies and de-
commissioning services.
Legacy Application
Documentation
Full documentation services for business and technical
functionality, interfaces, dependencies, etc.
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Decisions are guided by CGI’s proven Application Portfolio
Rationalization & Management (APR\M) methodology
Retain Renovate
Replace or Retire Re-engineerLow
Tactical Strategic
High
Business
Value
Technical
Condition
Legacy
Re-Architect
Legacy
Extension (SOA)
Legacy
Re-Architect
Legacy
Enhancement
Legacy
Migration
Legacy
Conversion
Legacy
Application
Documentation
Total Cost of Ownership is applied subsequently and may result in changes to the application roadmap
AssessmentTechnical
Analysis
Business
ValidationSign Off
Inputs • Application scope
• Stakeholder & Delivery
Team
• Existing documentation
• Source code
• SRS draft v0.0
• SDS draft v0.0
• SRS draft v0.1
• SDS draft v0.1
Roles • Business Analyst(s)
• Technical Support SME(s)
• Systems Analyst(s)
• Technical Analyst(s)
• Technical Support SME(s)
• Systems Analyst(s)
• Business Analyst(s)
• Business SME(s)
• Systems Analyst(s)
• Stakeholders
• Systems Analyst(s)
Activities • Identify and Assess:
• Application architecture
• Related business
processes
• Existing system
documentation
• Required source code
• Current State
Assessment
• Peer review and quality
control
• Analysis of source code
and documentation using:
• Onsite team
• Global Delivery team
• Tools & templates
• Create System
Requirement Specification
(SRS) and System Design
Specification (SDS)
• Peer review and quality
control
• Validate application based
business logic and rules with
business SME(s)
• Identify and address any
gaps in the draft SRS and
draft SDS
• Peer review and quality
control
• Conduct SRS and SDS
review with stakeholder(s)
• Incorporate feedback
• Peer review and quality
control
• Sign off
Milestones • Application scope finalized
• Documented current state
assessment
• SRS draft v0.0
• SDS draft v0.0
• SRS draft v0.1
• SDS draft v0.1
• Final SRS
• Final SDS
Systems Analysts follow a systematic process to complete the
Legacy Application Documentation process.
Confidential18
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Result
Significantly reduce the cost to support business and deliver
the capability to bring business strategy to life
Migrate to current technologies;
accurately document
applications
Reduced reliance on Legacy Systems,
lower support costs
High cost of legacy system
maintenance
Migrate to current technologies;
accurately document
applications
Increased candidate pool;
knowledge management and
system expertise documented
Shrinking workforce and
fading skill set
Introduce SOA platforms
and applications
Enable for business driven rule
definition and configuration; ability to
react faster to regulatory change
Impaired business agility and
longer time to market
Develop a roadmap for
modernization; implement
capability for integration
Improved project costs and delivery,
improved data quality and
business process support
Lack of flexibility and integration
Accurately document
applications
and IT infrastructure
Ability to quickly check impacts of
modifying or removing interfaces and
functionality
Risks from new implementations
and system changes
Implement well structured code;
accurately document
applications
Ability for Business Analysts to
understand requirement impacts and
associated costs
Project estimations that are not
accurate or are difficult to attain
TransformationChallenge
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CGI’s comprehensive Legacy Application Transformation
offering enables your business for today and the future
•IT spend towards maintenance
•HR risks and challenges
•Business hampered by systems
•High project costs and risks
•Unclear or roadmap that can’t be realized
•IT spend towards strategic growth
•Documented and transferable expertise
•Business configured rules and processes
•Control project costs and risks
•Clear roadmap, manageable steps
CGI has successfully delivered Legacy Transformation to all industries, across most technologies.
_experience the commitment TM
Our commitment to you CGI provides the best mix of responsive local service at global delivery value.