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Flash Findings

From Clunky to Clever: How Governance Can Rescue Your Legacy App Portfolio

Mon., 21. April 2025 | 1 min read

Treat legacy application modernization as a governed portfolio initiative, not a one-off IT spring cleaning. CIOs and IT leaders should stop viewing modernization as isolated tech upgrades and instead position it as a governance-driven exercise under the IT portfolio. Aligning modernization with strategic goals, resource management, and value delivery ensures you're not just replacing worn-out tires but steering the whole vehicle in the right direction.

Why You Should Care

  1. Legacy bloat hides opportunity: Pandemic-era and other legacy apps that once served urgent needs are now sitting idle, eating costs and exposing you to security and performance risks. Research has shown that modernization can slash maintenance costs by up to 50% and boost revenue by 14%.
  2. Governance matters more than guts: Erasmus & Marnewick’s study shows that IT governance—especially around resource allocation, value delivery, and strategic alignment—is a more reliable predictor of modernization success than technical heroics.
  3. Not all strategies are created equal: From rehosting to rebuilding, modernization strategies vary in cost, complexity, and business impact. Selecting the right one requires portfolio-level oversight—precisely where governance frameworks shine.
  4. COBIT to the rescue: Leverage EDM (Evaluate, Direct, Monitor) and APO (Align, Plan, Organize) domains from COBIT 2019 to drive benefit-based decisions and governance for IS portfolios. These aren’t just compliance tools—they're compasses.

What You Should Do Next

  • Map your app modernization efforts to IS portfolio governance using COBIT’s APO and EDM domains.
  • Classify modernization targets into: implement, enhance, or maintain, based on perceived importance vs current maturity.
  • Elevate modernization from IT ops to strategic oversight. This is a C-suite conversation that IT leaders should push to get started

Get Started

  1. Run a modernization audit using criteria like cost, complexity, security risk, and strategic fit. Tag each app as a portfolio asset.
  2. Apply COBIT governance controls (EDM01-05, APO05-08) to direct modernization decisions based on benefits realization and strategic alignment.
  3. Build a modernization roadmap that links each initiative to strategic business outcomes, not just tech fixes.
  4. Train your teams on modern architecture (APIs, microservices, DevOps) while reinforcing the governance model behind the tech.

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