WorkThe story, in brief

IT modernization: Still a make-or-break project for CIOs

CIOs are now modernizing faster than ever — but this time, AI is forcing them to rethink what 'legacy' even means.

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People, judgement and the changing nature of work.AI illustration by KeyNews
The KeyNews take

Why it matters

IT modernization is shifting from a technology-driven refresh cycle to a business-driven response to AI's impact on workflows, user interfaces, and application utility. CIOs must now evaluate whether existing applications (dashboards, specialized chatbot tools, point solutions) remain valuable when AI can replicate their functions natively, while also controlling sprawl from rapid AI adoption.

The key facts

16 to know
  1. CIOs surveying SaaS portfolios to eliminate point solutions and replace specialized tools with AI-native alternatives

  2. Dashboarding tools potentially being reduced or eliminated as natural-language querying replaces dashboard-driven reporting

  3. Chatbot-building platforms being rationalized; generic AI platforms can now fulfill the same function

  4. Modernization now triggered by business capability gaps, not technology age or obsolescence

  5. CIOs advising a 'scalpel not an ax' approach: rationalize by business need and emerging strategy, not application count

  6. General Dynamics Land Systems standardized from 10 CAD tools to 2; from 3 reporting tools to 1

  7. Claude Code and similar tools enabling CIOs to build custom applications instead of licensing vendor solutions

  8. Data migration and vendor lock-in remain significant cost barriers to modernization

  9. Modernization now a continuous, not episodic, CIO function

  10. BlackLine CIO Sumit Johar: 'everything built in the last few years looks like legacy' in the AI era

  11. Natural language query interfaces to ERP/CRM replacing purpose-built dashboards

  12. General Dynamics Land Systems rationalized CAD tools from 10 to 2, reporting tools from 3 to 1

  13. CIOs using Claude Code and generic AI platforms to build internal apps instead of paying for vendor solutions

  14. Modernization now triggered by business capability gaps, not technical obsolescence

  15. UST modernizing CRM platform that wasn't 'legacy' by traditional definition due to poor user adoption and data quality

  16. Multiple CIOs describe modernization as 'continuous process,' not discrete project

Go to the source

CIOcio.com

Publisher excerpt: Sumit Johar has been modernizing BlackLine’s IT environment since becoming CIO of the software company in early 2024. As a longtime IT leader, Johar has plenty of experience overhauling tech stacks, but he says the work has taken on new meaning — and urgency — in the AI era. “The definition of…
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