Monday, March 27, 2023

Top Indicators of Enterprises Struggling with Legacy Systems

By Prangya Pandab - August 17, 2022 4 Mins Read

Businesses can adopt a progressive and iterative approach to their upgrades depending on business priorities with the right modernization strategy, resources, and tools. It will support a digital transformation that strikes the right balance between core modernization and innovation and help minimize business disruption.

Legacy is an absolute deal-breaker in the IT environment and a headache that only gets worse over time. Especially given that IT currently serves as the foundation for business operations. Unprecedented operational failures can be caused by critical infrastructure gaps that have developed due to years of inadequate maintenance, underinvestment, and the tendency to leave things as they are. This became frighteningly clear when the pandemic decimated the world economy, and businesses had to fight to survive.

Due to the unexpected push towards digitization and modernization, aligning business goals and IT investments has become a new requirement for modern CIOs.

Additionally, even though businesses spend a large percentage of their IT budget on support and upkeep, application modernization is becoming more critical. Despite this, companies are often unaware of the limitations imposed by their legacy systems. Additionally, the impact on costs and productivity is staggering due to unsupported systems, manual processes, inadequate security, poor user experience, and a lack of innovation.

Also Read: Can Blockchain Work With Your Legacy Systems, And Should It?

Here are some hidden drawbacks that indicate whether a company is struggling with legacy systems.

Upgrades and Integration Are Challenging

There will be major obstacles to turning digital and evolving to handle dynamic business concerns if the company still relies on legacy IT systems at a time when digital technology is revolutionizing ways of working. Another major reason why many digital transformation efforts fail is that businesses integrate diverse legacy systems with emerging technologies. Additionally, mobile compatibility for legacy systems is essentially non-existent.

Additionally, bad integration always results in data silos inside the business, making it impossible for other departments to access the data they require. IT systems must constantly support business growth and be flexible enough to include new software and hardware for improved functionality.

Tech Debt is Increasing

Maintaining sizable legacy architecture and platforms is challenging on any given day. It depletes IT budgets and has a number of overhead and hidden costs that hinder a company’s success.

Additionally, the HR teams may have difficulty finding the right individuals who are familiar with the system because, as IT infrastructure gets older, the knowledge needed to run and maintain it becomes less common. Additionally, operating legacy systems damage the company’s sustainability goals preventing new revenue sources from emerging and racking up significant technical debt.

Also Read: Four Ways CIOs can streamline their Legacy Technologies

The User Experience is Terrible 

A robust technology strategy must prioritize improving processes and capabilities to stay competitive. However, legacy systems are often rigid and have a very tough time adjusting to changes in the market. Today’s tech-savvy consumer expects interactions with a digital company, and for employees to meet this expectation and remain competitive, they need digital tools.

Employees and customers demand an experience similar to what they are used to on their phones and laptops due to advancements in user interfaces, which the current systems might not be able to deliver. Dealing with a legacy system will diminish the user experience and cause the business to lag behind its competitors.

Missing Technological Advancements that Boost Productivity

New digital solutions that enable much higher efficiency through data intelligence, process automation, behavioral science, and predictive analytics are now readily available because of advancements in technology. Businesses should be able to leverage technology trends like AI, ML, IoT, Robotic Process Automation (RPA), cloud computing, chatbots, and much more to increase revenue. But when companies must overcome the obstacle of legacy infrastructure, things get complicated. Legacy architecture makes it nearly impossible to integrate with digital systems and also leads to data and technology silos within the same company, preventing it from utilizing the full potential of digital technology.

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Prangya Pandab

Prangya Pandab is an Associate Editor with OnDot Media. She is a seasoned journalist with almost seven years of experience in the business news sector. Before joining ODM, she was a journalist with CNBC-TV18 for four years. She also had a brief stint with an infrastructure finance company working for their communications and branding vertical.

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