The Hidden Costs of Legacy Systems

7 18, 2016

Many organisations rely heavily on legacy systems to support critical business functions and services.  As systems age it’s not always the costs that appear on the balance sheet that have the most impact.  Organisations need to look below the water line and consider the wider affects which may be driven by technology.

Technology that which doesn’t evolve becomes stagnant.  Apathy toward a system limits an organisations ability to drive continuous improvement.  Systems become known as a bit clunky, not quite fit for purpose, it becomes accepted that “you just have to know what you are doing”, “Bill down the hall knows how to do it”.  In contrast to being a system embraced by multiple people, multiple teams.  A system that brings the organisation closer together rather than highlighting the divide.

Business process starts being driven by what is available rather than what it should be.  This inserts inefficiency into an organisation every day, peoples motivation can be affected by a perceived lack of investment in the tools needed to effectively conduct their jobs. 

Customers of an organisation look for simplicity, efficiency.  As customers evolve so must systems.  Failure to adapt as trends change can bring enormous cost to an organisation.  Google announced last year that search rankings will take more account of how mobile-friendly the page is.  Customers also expect systems to talk to other systems, open interfaces to export data to Business Intelligence (BI) platforms, APIs to allow customers to integrate their own systems and become a seamless part of the end-to-end business process. 

Applications should be capable of deployment to the cloud, whether via on premise virtualized environments or 3rd party hosting providers.  This provides flexibility to evolve the IT footprint of an organisation as and when required.

So yes, legacy systems often cost more to support, extended support policies often make sure of that. However the real costs can be so much more.  

Queensland were looking for modern platform that would allow them to manage all of their state’s historic places from one smart solution. Their existing environment consisted of an array of different systems and processes which hampered their productivity and limited their visibility across their operations. FINNZ developed and implemented a complete end-to-end solution that could meet all their objectives both internally and externally.

FINNZ are specialists in providing end to end delivery of systems focussed on rebuilding legacy systems to suit organisations current and future needs.  For further information see our case study ‘Taking Queensland’s Heritage into the Digital Age’ which looks at the system we built for the Department of Environment & Heritage Protection, Queensland.

If you have any further questions, please just get in touch.

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