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Digital transformation ( DT ) is the process of adoption and implementation of digital technology by an organization in order to create new or modify existing products, services and operations by the means of translating business processes into a digital format.

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46-706: [REDACTED] Look up digitalization in Wiktionary, the free dictionary. Digitalization or digitalisation may refer to: Digital transformation , the adoption of digital tools to create new or modify existing products, services and operations. Digitization , the conversion of analog information into a digital format Medical use of Digoxin Medical use of other Digitalis -based drugs See also [ edit ] Digital (disambiguation) Quantization (disambiguation) Digitation Topics referred to by

92-569: A Win16 application running on Windows XP using the Windows on Windows feature in XP. An example of legacy hardware are legacy ports like PS/2 and VGA ports, and CPUs with older, incompatible instruction sets (with e.g. newer operating systems). Examples in legacy software include legacy file formats like .swf for Adobe Flash or .123 for Lotus 1-2-3 , and text files encoded with legacy character encodings like EBCDIC . The first use of

138-510: A data warehouse . In either case, the effect on business intelligence and operational reporting can be significant. A legacy system may include procedures or terminology which are no longer relevant in the current context, and may hinder or confuse understanding of the methods or technologies used. Organizations can have compelling reasons for keeping a legacy system, such as: Legacy systems are considered to be potentially problematic by some software engineers for several reasons. Where it

184-463: A 2021 survey, 55% of European companies stated the COVID-19 pandemic has increased the demand for digital technology, and 46% of companies reported that they have grown more digital. Half of these companies anticipate an increase in the usage of digital technologies in the future, with a greater proportion being companies that have previously used digital technology. A lack of digital infrastructure

230-521: A `challenge` to current coders to create code that is "like other legacies in our lives—like the antiques, heirlooms, and stories that are cherished and lovingly passed down from one generation to the next. What if legacy code was something we took pride in?". The term legacy support is often used in conjunction with legacy systems. The term may refer to a feature of modern software. For example, Operating systems with "legacy support" can detect and use older hardware. The term may also be used to refer to

276-406: A business function; e.g. a software or hardware vendor that is supporting, or providing software maintenance , for older products. A "legacy" product may be a product that is no longer sold, has lost substantial market share, or is a version of a product that is not current. A legacy product may have some advantage over a modern product making it appealing for customers to keep it around. A product

322-509: A lack of resources, top management support, workers' skills, commitment, collaboration and vision. Some company cultures can struggle with the changes required by digital transformation. In addition to the several barriers to digital transformation, there are also numerous enablers of digital transformation. The primary enablers are organizations' resources and capabilities, workers' skills, technologies and culture. The aforementioned enabler "Organizations resources and capabilities" refers to

368-469: A separate legacy system, or a legacy customer using an old feature or software version. While the term usually refers to source code, it can also apply to executable code that no longer runs on a later version of a system, or requires a compatibility layer to do so. An example would be a classic Macintosh application which will not run natively on macOS , but runs inside the Classic environment , or

414-513: A socio-technical programme. A 2015 report stated that maturing digital companies were using cloud hosting, social media, mobile devices and data analytics, while other companies were using individual technologies for specific problems. By 2017, one study found that less than 40% of industries had become digitized (although usage was high in the media, retail and technology industries). As of 2020, 37% of European companies and 27% of American companies had not embraced digital technology. Over

460-544: A system as "legacy" means that it paved the way for the standards that would follow it. This can also imply that the system is out of date or in need of replacement. Legacy code is old computer source code that is no longer supported on standard hardware and environments, and is a codebase that is in some respect obsolete or supporting something obsolete. Legacy code may be written in programming languages, use frameworks and external libraries, or use architecture and patterns that are no longer considered modern, increasing

506-447: A system is out of date, a legacy system can continue to be used for a variety of reasons. It may simply be that the system still provides for the users' needs. In addition, the decision to keep an old system may be influenced by economic reasons such as return on investment challenges or vendor lock-in , the inherent challenges of change management , or a variety of other reasons other than functionality. Backward compatibility (such as

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552-511: Is a direct application of this theory, stating that resources can be either tangible, intangible or human. The tangible side of the DTC framework gathers physical assets like the organization's IT infrastructure, whereas the intangible side focuses on its digital transformation strategy, knowledge, and reputational capital. Human resources are broader and include technical skills, continuous training, leadership, and social skills. Digital transformation

598-500: Is broader than just the digitization of existing processes. Digital transformation entails considering how products, processes and organizations can be changed through the use of new digital technologies. A 2019 review proposes a definition of digital transformation as "a process that aims to improve an entity by triggering significant changes to its properties through combinations of information, computing, communication, and connectivity technologies". Digital transformation can be seen as

644-821: Is different from Wikidata All article disambiguation pages All disambiguation pages Digital transformation The goal for its implementation is to increase value through innovation , invention, improved customer experience and efficiency. Focusing on efficiency and costs, the Chartered Institute of Procurement & Supply (CIPS) defines "digitalisation" as the practice of redefining models, functions, operations, processes and activities by leveraging technological advancements to build an efficient digital business environment – one where gains (operational and financial) are maximised, and costs and risks are minimised. However, since there are no comprehensive data sets on digital transformation at

690-506: Is imperative for overcoming any adverse effects of the challenges. According to the resource-based view theory, successful firms' resources should be valuable, rare, non-imitable, and non-substitutable in order for capabilities such as responsiveness, flexibility, or even agility to be developed. "A capability is a concept that refers to an organization's use of a set of resources to carry out its routine and strategic activities". The digital transformation capability (DTC) framework

736-438: Is impossible to replace legacy systems through the practice of application retirement , it is still possible to enhance (or "re-face") them. Most development often goes into adding new interfaces to a legacy system. The most prominent technique is to provide a Web-based interface to a terminal-based mainframe application. This may reduce staff productivity due to slower response times and slower mouse-based operator actions, yet it

782-704: Is often perceived as a reactive measure to address customer demands, competition, and regulatory compliance. However, it can be a proactive opportunity for organizations to achieve sustainable business practices and facilitate a circular economy . By building sensing, smart, sustainable, and social capabilities, enterprises can capture valuable information, make faster and smarter decisions, and adapt to changing environments. Aligning digital transformation with sustainability can enhance performance by engaging stakeholders, optimizing resource allocation , and reducing risks. A comprehensive business case that prioritizes sustainability benefits and multidimensional returns can secure

828-410: Is often seen as an "upgrade", because the interface style is familiar to unskilled users and is easy for them to use. John McCormick discusses such strategies that involve middleware . Printing improvements are problematic because legacy software systems often add no formatting instructions, or they use protocols that are not usable in modern PC/Windows printers. A print server can be used to intercept

874-567: Is only truly "obsolete" if it has an advantage to nobody —if no person making a rational decision would choose to acquire it new. The term "legacy mode" often refers specifically to backward compatibility . A software product that is capable of performing as though it were a previous version of itself, is said to be "running in legacy mode". This kind of feature is common in operating systems and internet browsers, where many applications depend on these underlying components. The computer mainframe era saw many applications running in legacy mode. In

920-483: The organizational culture empowers managers to take decisive actions, enables seamless collaboration among workers across diverse departments, and fortifies supply chains . Additionally, it empowers top management to respond swiftly and proactively, effectively reducing and mitigating adverse impacts. Effective communication within an organization is essential among departments and employees. Furthermore, possessing robust skills in communication, leadership, and strategy

966-471: The Space Shuttle program. Thus any new system that started the certification process becomes a de facto legacy system by the time it is approved for flight. Additionally, the entire Space Shuttle system, including ground and launch vehicle assets, was designed to work together as a closed system. Since the specifications did not change, all of the certified systems and components performed well in

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1012-604: The ability of an organization to adapt to contemporary issues arising in the business environment, as well as their capabilities in the field of data analytics. In regards to "Workers' skills", workers must be able to develop valuable insights with the use of data, have significant emotional intelligence and effectively part-take in the development of new products. Thirdly, technology is also a vital enabler of digital transformation. Companies can benefit from having access to artificial intelligence , data analytics softwares and effective usage of social media. Lastly, "Culture" pertains to

1058-444: The ability of newer systems to handle legacy file formats and character encodings ) is a goal that software developers often include in their work. Even if a legacy system is no longer used, it may continue to impact the organization due to its historical role. Historic data may not have been converted into the new system format and may exist within the new system with the use of a customized schema crosswalk , or may exist only in

1104-483: The all-or-nothing approach. A few benefits of DDP are risk mitigation, quick response to changing market conditions, and increased success rate to digital transformations. Adopting digital technology can bring various benefits to a business. CIPS has also observed that digital capability can be used to support supply chain transparency and remote working . There are multiple common barriers that digital transformation initiatives, projects and strategies face. One of

1150-463: The average usage of 69% across EU organizations. Digital transformation plays a crucial role in alleviating the adverse effects of simultaneous and interconnected challenges, while also strengthening the resilience and adaptability of both organizations and supply chains. Represented by the TOP framework, digital transformation acts as a catalyst for generating and leveraging benefits. These benefits hold

1196-437: The capability to use and maintain the system are crucial. Otherwise the system will become less and less understandable and maintainable. According to Hein, verification, validation, testing, and operational history increases the confidence in a system's reliability and quality. However, accumulating this history is often expensive. NASA's now retired Space Shuttle program used a large amount of 1970s-era technology. Replacement

1242-755: The changes can be incorporated quickly and easily in the ABP software. Model-driven reverse and forward engineering approaches can be also used for the improvement of legacy software. Andreas M. Hein researched the use of legacy systems in space exploration at the Technical University of Munich. According to Hein, legacy systems are attractive for reuse if an organization has the capabilities for verification, validation, testing, and operational history. These capabilities must be integrated into various software life cycle phases such as development, implementation, usage, or maintenance. For software systems,

1288-911: The cost of replacing business logic is about five times that of reuse, even discounting the risk of system failures and security breaches. Ideally, businesses would never have to rewrite most core business logic: debits = credits is a perennial requirement. The IT industry is responding with "legacy modernization" and "legacy transformation": refurbishing existing business logic with new user interfaces, sometimes using screen scraping and service-enabled access through web services . These techniques allow organizations to understand their existing code assets (using discovery tools), provide new user and application interfaces to existing code, improve workflow, contain costs, minimize risk, and enjoy classic qualities of service (near 100% uptime, security, scalability, etc.). This trend also invites reflection on what makes legacy systems so durable. Technologists are relearning

1334-403: The data and translate it to a more modern code. Rich Text Format (RTF) or PostScript documents may be created in the legacy application and then interpreted at a PC before being printed. Biometric security measures are difficult to implement on legacy systems. A workable solution is to use a Telnet or HTTP proxy server to sit between users and the mainframe to implement secure access to

1380-463: The extent the organizational culture is data-driven and the quality of the top management support and engagement within the corporation. Digitization is the process of converting analog information into digital form using an analog-to-digital converter , such as in an image scanner or for digital audio recordings. As usage of the internet has increased since the 1990s, the usage of digitization has also increased. Digital transformation, however,

1426-427: The importance of sound architecture from the start, to avoid costly and risky rewrites. The most common legacy systems tend to be those which embraced well-known IT architectural principles, with careful planning and strict methodology during implementation. Poorly designed systems often don't last, both because they wear out and because their inherent faults invite replacement. Thus, many organizations are rediscovering

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1472-411: The legacy application. The change being undertaken in some organizations is to switch to automated business process (ABP) software which generates complete systems. These systems can then interface to the organizations' legacy systems and use them as data repositories . This approach can provide a number of significant benefits: the users are insulated from the inefficiencies of their legacy systems, and

1518-490: The macro level, the overall effect of digital transformation is still (as of 2020 ), too early to comment. While there are approaches which see digital transformation as an opportunity to be seized quickly if the dangers of delay are to be avoided, a useful incremental approach to transformation called discovery-driven planning (DDP) has been proven to help solve digital challenges, especially for traditional firms. This approach focuses on step-by-step transformation instead of

1564-515: The main barriers is change management , because changes in processes may face active resistance from workers. Related to change management is the miscommunication between workers, which can lead to implementation delays or even complete project failure. Some companies are unable to develop a realistic cost projection due to a too optimistic view of the process. Companies may have legacy systems in place, which can lead to integration difficulties with new systems. Within organizations there may also be

1610-458: The mental burden and ramp-up time for software engineers who work on the codebase. Legacy code may have zero or insufficient automated tests , making refactoring dangerous and likely to introduce bugs . Long-lived code is susceptible to software rot , where changes to the runtime environment, or surrounding software or hardware may require maintenance or emulation of some kind to keep working. Legacy code may be present to support legacy hardware,

1656-431: The modern business computing environment, n-tier , or 3-tier architectures are more difficult to place into legacy mode as they include many components making up a single system. Virtualization technology is a recent innovation allowing legacy systems to continue to operate on modern hardware by running older operating systems and browsers on a software system that emulates legacy hardware. Programmers have borrowed

1702-433: The necessary resources for successful implementation. To achieve sustainability goals , effective governance, integration, change management, and stakeholder involvement are critical factors. Legacy system In computing , a legacy system is an old method, technology, computer system , or application program , "of, relating to, or being a previous or outdated computer system", yet still in use. Often referencing

1748-565: The period of 2017 to 2020, 70% of European municipalities have increased their spending on digital technologies. By 2019, the Chartered Institute of Procurement & Supply found in a survey of 700 managers, representing over 20 industries and 55 countries, that over 90% of the businesses represented had adopted at least one new form of information technology, and 90% stated that their digitalisation strategies aimed to secure decreased operational costs and increased efficiency. In

1794-491: The potential to bolster resilience across not only individual organizations but also throughout the entire supply chain. It does so by leveraging cutting-edge technologies to enhance predictive power and responsiveness. Technologies include the Internet of Things , big data analytics , artificial intelligence , simulation , additive manufacturing , blockchain , and digital twins . Digital transformation embedded within

1840-557: The roles for which they were designed. Even before the Shuttle was scheduled to be retired in 2010, NASA found it advantageous to keep using many pieces of 1970s technology rather than to upgrade those systems and recertify the new components. Some in the software engineering prefer to describe "legacy code" without the connotation of being obsolete. Among the most prevalent neutral conceptions are source code inherited from someone else and source code inherited from an older version of

1886-425: The same term [REDACTED] This disambiguation page lists articles associated with the title Digitalization . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Digitalization&oldid=1170089768 " Category : Disambiguation pages Hidden categories: Short description

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1932-456: The software . Eli Lopian, CEO of Typemock, has defined it as "code that developers are afraid to change". Michael Feathers introduced a definition of legacy code as code without tests , which reflects the perspective of legacy code being difficult to work with in part due to a lack of automated regression tests . He also defined characterization tests to start putting legacy code under test. Ginny Hendry characterized creation of code as

1978-482: The term brownfield from the construction industry, where previously developed land (often polluted and abandoned) is described as brownfield . There is an alternate favorable opinion—growing since the end of the Dotcom bubble in 1999—that legacy systems are simply computer systems in working use: " Legacy code " often differs from its suggested alternative by actually working and scaling. IT analysts estimate that

2024-412: The term legacy to describe computer systems probably occurred in the 1960s. By the 1980s it was commonly used to refer to existing computer systems to distinguish them from the design and implementation of new systems. Legacy was often heard during a conversion process, for example, when moving data from the legacy system to a new database. While this term may indicate that some engineers may feel that

2070-407: Was cost-prohibitive because of the expensive requirement for flight certification. The original hardware completed the expensive integration and certification requirement for flight, but any new equipment would have had to go through that entire process again. This long and detailed process required extensive tests of the new components in their new configurations before a single unit could be used in

2116-555: Was viewed as a key barrier to investment by 16% of EU businesses, compared to 5% in the US. In a survey conducted in 2021, 89% of African banks polled claimed that the pandemic had hastened the digital transformation of their internal operations. In 2022, 53% of businesses in the EU reported taking action or making investments in becoming more digital. 71% of companies in the US reported using at least one advanced digital technology, similar to

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