Building a Business Case for Legacy Software Modernization
Most established businesses run with legacy software – the workhouse in the background supporting daily operations. Yet, it’s a phrase that encompasses several meanings. For some, it’s the bedrock of their business, the in-house solution that has faithfully powered their operations for years. Others might perceive it as the suite of off-the-shelf or Software as a Service (SaaS) tools they’ve adopted to streamline their functions. It can even be that all-encompassing enterprise resource planning (ERP) system, or something entirely unique, customized to meet specific needs.
Regardless of the terminology used, legacy software is the unseen backbone of countless businesses, both big and small. It’s the software that enables your services to be delivered to your customers, your finance department to manage budgets, or your production team to optimize processes. But with time, as technology advances and your business expands, the cracks in these systems become more evident, giving rise to a host of challenges.
Let’s explore some common problems experienced by businesses with legacy software and benefits that modernizing the software can bring.
Problems with Legacy Software
One of the most cited reasons for desiring change in legacy software is that it’s “broken.” Whether workarounds exist or part of the system has become unusable, these issues can lead to user frustration and hinder productivity. When problems arise with your legacy software, it becomes evident that fixing, replacing or modernizing it is a necessary step.
Beyond the immediate frustrations, these software problems can have a far-reaching impact on your business. Missed opportunities, decreased customer satisfaction, and increased operational costs are just a few of the consequences. So, addressing these issues is not just about functionality; it’s about the overall health and effectiveness of your business.
Business Growth
The goal of many businesses is growth, and with growth, complexity tends to follow. Systems that have functioned well up to this point may not scale effectively when the number of people increase. As you cross the threshold where keeping track of everyone becomes challenging, there’s a growing need for features like access controls and logs within systems. Ensuring that individuals can only access what’s necessary for their job roles becomes essential in minimizing the risk of client data exposure, protecting business IP, and enhancing the safety of sensitive employee information. Unfortunately, legacy systems often aren’t designed with that level or detail of access management in mind. Therefore, modernizing your system becomes an important step in supporting your business growth.
Security
Technology security is an ongoing race between bad actors uncovering vulnerabilities in systems and good actors work to fix or prevent those vulnerabilities. As technology ages, it becomes more susceptible to vulnerabilities, and the exploitation of these weaknesses can be automated. Modernizing your system is a proactive measure to stay current with the latest security updates. This isn’t just a matter of technology; it’s about preserving your business’s integrity, trustworthiness, and longevity in an age where data security is non-negotiable.
Process Change
Businesses evolve. They may introduce new services or products, or change their internal delivery processes. The primary objective of your software systems is to support your business – and make the processes run smoothly for everyone involved. But what happens when your business processes change? The answer is simple: you need to update your systems to reflect the changes in the process. Modernizing your legacy systems is the key to keeping your software user-friendly for your employees, vendors, and customers.
Speed & Efficiency
Older technology often comes with limited capacity. While the system may have functioned well at the outset, scaling it to handle thousands of orders and the associated reporting can significantly slow it down. Slower systems equate to frustrated employees and customers. Investing in modernizing your systems can provide benefits in terms of employee efficiency and reduce the need for additional hires. The hidden benefit here is cost savings – a more efficient system can effectively streamline your operations and contribute to your bottom line.
Aging Supported Technology
As software ages, the pool of qualified individuals to maintain and upgrade it diminishes. In some cases, the underlying technology dies, the company who built your ERP shuts down or discontinues support, or the technology partners move away from “old/outdated” projects. Younger programmers are often more interested in exploring and working with the latest technologies, making it challenging to find employees with expertise and experience in older technology. Keeping an application modernized not only addresses these challenges but also ensures a larger pool of maintainers for your systems.
Modernization is not solely about addressing the present; it is about preparing for the future. Whether your concern is improving operational efficiency, scaling your company, or meeting the security and access controls needs of your growing organization, this investment will help your business remain adaptable and customer-centric, all in a cost-effective manner.
