Drive innovation during application modernization

The App Modernization Guidance for Azure is a lifecycle approach to continuous innovation. As you expand your cloud-native footprint, you can take advantage of AI and build more intelligence into your applications and processes. You can create new business models and revenue streams, replacing outdated components with the latest Azure services to stay ahead.

Innovation is the natural outcome of your earlier application modernization activities. By adopting the mindset of continuous innovation, you ensure that your enterprise applications remain resilient, efficient, and future-ready.

Objectives of innovation

The objective at this stage is to embrace innovation as a core competency and introduce new initiatives. This is the time to:

• Embrace the API economy to drive innovation and create new opportunities to collaborate and enhance services.
• Explore opportunities to monetize data and data streams, opening new revenue channels, expanding into new markets, and offering innovative services to customers.
• Enhance customer interactions and deliver new, engaging experiences such as AI-driven customer support, personalized recommendations, and interactive interfaces.
• Demonstrate a mindset of continuous innovation, viewing application modernization as an iterative practice and embracing AI and other new technologies.

Expected outcomes of innovation

In the application modernization maturity model, innovation activities are associated with Digital Champions. You can expect significant advances in business agility, innovation, scalability, security, and development velocity. To maintain this leadership position, you must continually invest in new technologies such as AI services, scalable architectures, and proactive security measures.

With innovation at your organization’s core, you can infuse intelligence into your processes, drive new revenue streams, thrive in the API economy, and deliver innovative customer experiences, ultimately leading to sustained growth and market leadership.

Impact vs ROI during innovation

Cycles of innovation help you stay ahead of the competition. Using advanced technologies and innovative solutions, your organization can differentiate itself in the market and quickly adapt to trends.

Modernizing your enterprise application opens numerous possibilities for creating new revenue streams. By monetizing data and exploring new markets, you can unlock additional income channels and offer innovative services that cater to the evolving needs of your customers.

Consider the following strategies:

• Monetize your data. Analyze the data that your application collects and identify opportunities to monetize it. For example, consider selling anonymized data sets, offering premium data insights, or creating subscription-based data services.
• Explore new markets. Use data to identify potential new markets and tailor your offerings to meet their needs. For example, consider localizing your application or developing new features that cater to specific market demands.
• Develop new services. Use customer data and feedback to enhance experiences through predictive analytics, personalized recommendations, and advanced reporting features.

Next steps

Continue the journey and innovate and automate using AI services.