Reasons Why Your Legacy System May Require an Upgrade



Reasons Why Your Legacy System May Require an Upgrade

Do you have a pair of carpet slippers that you feel very comfortable in? The chances are good that you wear them as you lounge in your living room, catching your favorite TV show or browsing social media using Spectrum internet. But no matter how much you love those slippers, and how comfortable they are, there will come a time when they become worn and threadbare. In other words, they will become obsolete, and you will have to let go of your comfort and buy a new pair. The same principle applies to a business with outdated legacy systems. After a certain point, it will be holding you back instead of supporting your growth. Read on to find out more.

Reasons to Upgrade Your Legacy Systems

Modern consumers have very high expectations not just from products, but from the customer experience that brands offer. Regardless of what the size or nature of your business is, offering a seamless customer experience at every step of the funnel is essential to acquire more customers. However, modern technology changes faster than we can keep up with it. A legacy system that supports your business operations today may become obsolete by the end of next year.

Legacy systems are essentially information systems that are based on older technology but are still critical to a business’s modern-day functioning. While they may get the job done right now, there is no guarantee that it will in the future. Since expansion and growth are core business objectives, it is more than likely that a legacy system will become obsolete after a certain period of time. But there are also several other reasons that prompt businesses to upgrade from legacy systems to more modern information infrastructures, which can include the following:

1.      Saving Money on Systems Maintenance and Support

2.      Deliver An Experience Appropriate To Customer Expectations

3.      Improved Performance and Fewer Bottlenecks

4.      Integration With Other Business Systems

Let’s examine these in more detail below.

Saving Money on Systems Maintenance and Support

Since it is the infrastructure to share and access business information, legacy information systems require extensive maintenance as well as technical support. This ensures smoother functioning of the system, which improves workflows and productivity. However, after some time, it starts to become increasingly expensive to continue to spend on maintenance and support for legacy systems. The opportunity cost is obvious. You will end up spending valuable resources on simply maintaining a system when you could be directing the same resources to generate more revenue.

By comparison, newer information systems require much less maintenance. They are more sophisticated, but also better designed, with fewer bugs and a greater focus on usability and user experience. That means you will be spending much less on maintenance and technical support.

Deliver an Experience Appropriate to Customer Expectations

It is very unlikely that you are the only player in your industry or niche. You likely have a number of competitors, many of whom offer identical products or services. In this context, what will motivate a consumer to choose your business over other similar ones? The answer lies in offering a better customer experience than the competition. However, a legacy system can place significant technological constraints on the experience a brand can offer to its customers. By comparison, modern cloud-based or similar information systems improve value delivery by speeding up business processes. They also improve the reliability and consistency of the results, which means a uniform standard for all consumers.   

Improved Performance and Fewer Bottlenecks

Employee performance is a priority of every business manager and leader. The productivity levels of your workforce have a direct impact on the revenues and profits your business generates. Better productivity equals more work accomplished and more revenue generated. Conversely, poor productivity could mean a drop in revenues because less work gets done. Among the many factors that impact employee productivity, the state of your information systems is a crucial area. Legacy systems tend to be slower, clunkier, and more awkward than their newer counterparts. Even if your productivity levels are satisfactory, upgrading to a new system will improve them further. Because newer business systems are faster, they can help boost productivity, and reduce the usual bottlenecks in most processes.

Integration With Other Business Systems

Very few legacy systems are designed with integration in mind. At the time, there was more focus on building a standalone, monolithic solution customized for use by specific businesses. This means your legacy system likely cannot communicate with any newer business software that you might be using. This leads to massive inefficiency, with workflows often being duplicated and redundant. Modern business systems are designed to integrate with a number of widely used applications and platforms. Working together, they can help boost team and departmental collaboration as well as productivity.

Conclusion

There’s no simple way to determine if your business requires a massive overhaul of its legacy information systems. It is not as easy as carrying out an internet speed test. You will have to assess various aspects, including the costs of implementing a new system, usability testing, migration, and even employee resistance to change. The success of your new system will depend heavily on how you tackle these factors. But one thing is for sure, a business that wants to scale up and grow can’t do so with business systems that are outdated. An infrastructural overhaul may be expensive, but it can be the best option for meeting your long-term business goals. 

Post a comment

0 Comments