IAM Modernization: Key Benefits and Implementation Steps

Identity and Access Management (IAM) is an approach to identity security that employs a range of technologies and business processes to help the right people or machines get access to the assets they need when they need them to carry out their roles. IAM enables organizations to maintain the confidentiality, integrity, and availability of systems, applications, and data. It enables organizations to maintain compliance with regulatory requirements and helps to mitigate cybersecurity incidents like insider threats and data breaches.

As organizations modernize to fulfill business imperatives, they must also modernize IAM and Identity Governance and Administration (IGA) systems to meet the challenges of managing identity-related security threats in new environments. To this end, The State of Identity Governance 2025 reported more than 76% of C-level IT and business leaders strongly agreed that IT security in their organizations is better funded today than it was in the previous year. Data from this report also suggests that using additional resources to modernize IAM and IGA is paying off in terms of better user access management. According to the report, only 29% of modern IGA system users believe people in their organizations have overly permissive access to systems and applications causing unnecessary risk compared to nearly 48% of legacy IGA system users. The trend is clear: using resources on organizational efforts to modernize IAM and IGA results in more efficient access control and less risk.

Making the decision to modernize IAM strategies is a critical first step. Realizing all the benefits that modernized IAM offers requires a proven process to migrate successfully from legacy to modern IAM and IGA systems. In this post, we’ll provide insight into the most critical factors to consider when choosing modern IAM and IGA solutions, best practices for implementation, and where to get help in the process.

What is the IAM Modernization Process?

IAM modernization is an approach for implementing new identity management and access control tools and solutions that ensure an organization can establish and maintain efficient identity security as business needs become more complex. IAM modernization strategies are built to optimize business processes and reduce operating costs.

Migrating to modernized IAM and IGA systems requires more than initiating a “lift and shift” of legacy systems to more robust platforms. This is because in most instances “lift and shift” does not enable an organization to leverage the full potential of SaaS-based services and new tools like generative AI that are key to improving performance and accommodating business growth. To roll out a successful implementation project that ensures a modern IAM is robust, scalable, and enhances the user experience, it is critical to do the up-front work to choose the right solution for your organization’s specific needs and develop a migration plan that works the first time.

Key Benefits of IAM Modernization

Before diving into the practical considerations for modern IAM implementation, it is helpful to understand what the specific benefits are that a successful migration can bring to an organization. These benefits include:

Enhanced Security

Modernizing IGA as part of an overall IAM modernization delivers functionality that improves security posture and strengthens protection against evolving identity security-related threat vectors. This functionality includes automated provisioning and de-provisioning, role management, risk assessment, access certification, automated policy enforcement such as Segregation of Duties (SoD), and more efficient incident response and risk management. These functions enable organizations to deploy better role-based access control (RBAC) models and enforce the principle of least privilege. A modern IGA platform also provides generative AI capabilities that make these functions easier for users to engage with.

Improved User Experience

Each tool in an organization’s legacy IAM system or solution may use a different interface. To achieve the outcomes the tools are designed to produce, people frequently must work in these discrete, unfamiliar interfaces and this increases the risk of user errors. Modernizing IAM dramatically improves user experience by unifying disparate, complex systems into intuitive interfaces. This shift, often powered by AI, enables users to manage identities through familiar tools like Microsoft Teams using natural language. The result is simpler, less error-prone identity management that enhances decision-making and streamlines governance.

Increased Efficiency

AI-driven IAM modernization strategies go beyond automating access request approvals to address all aspects of joiner-mover-leaver processes within identity lifecycle management. An AI assistant adapts to real-time risk factors using context-aware, risk-based decision-making processes. This enables faster request resolution, user provisioning and de-provisioning and minimizes IT workload. An AI assistant can predict and prevent risks like SoD policy violation checks before they occur.

Modern IAM leverages machine learning (ML) for intelligent role analysis and management. This enables better alignment of access with job functions, reduces certification fatigue, and increases operational efficiency. ML-driven role management makes access reviews faster and more accurate, contributing to both compliance and user satisfaction.

Compliance and Regulatory Adherence

IAM modernization plays a pivotal role in meeting compliance requirements. Modern IAM tools automate key requirements such as access reviews and audit ready reporting and help organizations respond more quickly to regulatory changes.

Implementation Steps for IAM Modernization

Before an organization can realize the benefits of implementing a modern IAM, it is critical to follow and execute a set of planned steps for deploying a modern IGA solution. IdentityPROJECT+ enables organizations to implement identity governance based on the IdentityPROCESS+ framework delivering measurable results and business value. Here is an overview of the most important steps:

Assess the Current IAM Infrastructure

To effectively evaluate your current infrastructure and identify your specific needs, consider the following questions:

1. What are the biggest pain points in the current IAM processes?
2. What are the biggest challenges you currently face in managing user identities and access privileges?
3. Are you looking to solve immediate tactical challenges or planning for long-term identity governance transformation?
4. What is the preferred deliverable method for the modern IAM and is this aligned to the policy and operational environment of the organization?

Define Modernization Goals

Set clear and achievable goals for IAM modernization and align goals with the organization’s business objectives. Omada’s comprehensive RFP Guide for Selecting the Right IGA Solution offers the insights and guidance needed to assess your organization’s specific requirements, ask the right questions, and ultimately select the solution that aligns with your goals.

Choose the Right IAM Solution

Establish criteria for selecting a modern IAM solution and compare different IAM solutions in the market.

Planning and Execution

Develop a detailed implementation plan that ensures the project moves from a project-oriented, pre-production environment to a live production operation according to agreed upon business priorities, requirements, and other project fundamentals.

Training and Change Management

Make sure employees, managers, and other stakeholders get the necessary training to use the new IAM solution.

Continuous Monitoring and Improvement

Provide a structure for ongoing monitoring of the solution and develop a sustainable approach to implementing continuous improvement and updates.

Conclusion

We see that most organizations are devoting more resources to making identity and access management more efficient. Industry research strongly suggests that choosing the right modern IAM solution and implementing it seamlessly is critical to achieving the desired security, compliance, and efficiency benefits from this commitment. Careful evaluation of modern IAM solutions and a structured approach to implementing the chosen solution ensure that it will perform as required; even when business needs and regulatory compliance frameworks become more complex. SaaS-based, AI-driven modern IAM solutions enable organizations to bring unprecedented efficiency to identity management, saving time and money in the process.