Modernizing Core Legacy Systems: A Framework Based on Transplantability and Tailoring

Legacy core systems can cripple organizations’ agility, trapping critical practices and data in a morass of technology. This article introduces a two-dimensional framework to guide organizational modernization that balances transplantability—focused on the value of swapping legacy systems with standardized systems—against tailoring—the extent of customization. We illustrate the framework through a first-hand account of Kyndryl, which modernized its systems after its spinoff from IBM. By limiting customization and leveraging standardized platforms, Kyndryl rapidly modernized its practices to become more competitive, increase data availability, and reduce costs.