Modernizing enterprise IT systems is full of legendary tales of frustration. Historically, states have poured huge sums of money into projects that have often taken much longer than expected and not worked as intended when finished. Still, the case for modernization is strong as half of all state and local IT budgets are going toward maintaining creaky, outdated systems. Given this need to modernize and the frustrations with how new development takes place, states and localities are looking at new options. This research report examines how government agencies can modernize enterprise systems more quickly and provides some examples of how it’s being done. Most importantly, it will discuss best practices that show how iterative, agile IT development can take root and flourish in the public sector.