Defining scope of modernization

"OUR modernization initiative is focused on transforming our entire business application platform."

I have come across this statement many times. It describes a multi-year IT platform modernization journey and captures the magnitude of the change envisioned by the technology teams. I have also observed that eventually, the defined scope of such large-scale modernization journeys become too wide to track the exact return on the investment - unless the roadmap focuses on incrementally modernizing specific (set of) component/s to attain particular business objectives.

Eventually, the defined scope of the modernization can become too wide to track the exact return on the investment

Fundamentally, the information technology in any enterprise has three layers - Applications, Data and Infrastructure. These information technology systems deliver value for a specific business objective. So, it usually is a (set of) limitation/s in any of these layers that trigger the modernization. But many times, the scope of modernization is defined by combining other non-related backlog items with the critical components to modernize. This approach creates a tidal wave of interdependent changes.  

It is very critical to find the exact limitation. It's equally important to find out what layer it occurs in

Because Applications, Data, and Infrastructure are tightly integrated, it is critical to identify the layer and the component limiting the business value delivery. This layered view can help identify the top-down impact these layers have on one another. Application layer modernization can warrant Data layer modernization, which in turn might trigger Infrastructure layer modernization. Hence, it is very critical to find the exact limitation. It's equally important to finding out what layer it occurs in. And define the scope of modernization accordingly. 

Modernization effort focused on solving a specific limitation, supported by an Agile delivery, will help businesses yield measurable returns on their investments.

There is always an epic or set of stories outlining nice-to-have features or enhancements to the application. While it is tempting to expand the modernization scope to include such backlog items, including areas unrelated to the limitation usually leads to diluted focus and unnecessary spending, sometimes dropping the expected business value delivery. It is like creating a problem where it doesn't exist and then spending resources to solve it.

Hence modernization effort focused on solving a specific (set of) limitation/s to enable particular business value delivery helps businesses yield measurable returns on their investments.