What is a Legacy System? Is It holding your business back?

Are Legacy Systems Holding Back Your Business Growth?

June 21, 2022 4:00 PM

 Legacy System

Since businesses first used computers to track inventory and financial information, the legacy system has been in existence. These systems are often left in place long after their manufacturer ceases to support them. It's like an old computer that you can't get rid of because it still runs your favorite programs. You may face problems with the legacy system if you don't have the right knowledge.

Businesses that are limited by their legacy systems are one of the biggest reasons they fail to innovate or grow. You should consider how your legacy system might react to any changes you make to your business, such as expanding or installing new software. This can prove costly and time-consuming.

Old and inefficient systems and manual processes are the biggest roadblocks to growth. They prevent businesses from achieving their potential and allow for future expansion.

Your business may be unique, but your problems are common for organizations of any size. By giving your employees the time they need, you can eliminate bottlenecks and inefficiencies in legacy systems that were not designed to do business in today's fast-paced world.

Here are the top problems that can arise when you rethink your digital core.

Your current IT infrastructure is not able to support rapid business growth. Even worse, you are paying high licensing, support, and labor costs each year. Inefficient and outdated systems are making your employees waste thousands of hours each year and limiting your business growth. These problems are common with inefficient systems, manual processes, and user-unfriendly systems.

Interconnecting data and systems can be a nightmare. You have multiple systems that don't work together, or even at all. When trying to find insights into your data, you have multiple versions or truths to choose from. Management and employees are not equipped with real-time intelligence, which hinders their ability to make informed decisions quickly. Basic reports and dashboards are difficult to create, take a lot of time, and are labor-intensive for your company.

Financial close is something you fear. It is labor-intensive and complex to determine the end of each month, quarter, and year. It can be difficult to determine your true profitability as well as costs.

Your business continuity is at stake because your organization is heavily dependent on outdated support technology and hardware. Worse, there is a risk to your company's ability to rely on these resources. You are suddenly at risk if the 'hero' of your organization, who can make it all work, falls ill or leaves the company. Your daily operations are also at risk if any of your systems fail.

Systems that aren't built to adapt to the fast-moving, distributed business world of today are a hindrance to growth and expansion. It's impossible to expand your reach into new markets, create new solutions, and leverage new customer segments. Your digital core is failing you. Your company's ability to grow will cause it to continue falling behind the competition and will result in your company losing out on profits.

Are you able to answer positively to at least two of the questions above, but are still struggling with outdated systems that don't allow your business to function efficiently and effectively? Then it's time to seriously think about a digital transformation strategy.

We have worked with thousands of complex organizations and can quickly apply the efficiency of best-practice solutions to provide maximum speed and value to help your business move to the cloud.

What can businesses do to update these? What investment and skills would they need to create platforms and processes that allow them to make better use of data?

Most organizations we see are migrating from expensive, on-premises, monolithic systems to more agile, cloud-based, Software-as-a-Service packages to manage their processes. Customers are often asking us how to migrate from old technology to new cloud-based technology.

Four things are required to enable organizations to make better data use:

A modern data platform to enable agile delivery and support self-service, reporting, and analytics. We helped a global soft drink manufacturer to improve its analytics and capabilities and make AI feasible at scale. Data is now always accessible to business users in 30 minutes. The solution's capabilities have been extended to other business units as well as to external partners such as bottlers. The client is now better equipped to achieve business value by collaborating around data.

Develop a data-driven culture. Traditional methods are not fast enough to provide value. Collaboration among key roles involved in the delivery of data pipelines or analytics must be accelerated. Streamlining the process from requirements definition, development, and tracking value.

Invest in data trust services. Data management is about enabling data access to the public, ensuring that people are aware of what is available, embedding data quality processes into the platform, and automating data lifecycle management to ensure only the most valuable data is used.

It emphasizes automation. Data managers need modern, interoperable tools for acquiring, organizing, preparing, and visualizing data. Tools that can combine data using machine learning, apply fuzzy matching algorithms and identify patterns to create patterns, and follow data quality rules are becoming increasingly important in large organizations with hundreds or even thousands of changing data sources.

Artificial intelligence and the realization that patterns in data are too complex to be identified by humans.

What's a legacy system?

A legacy system is a system or technology that has been discontinued but still functions in the workplace. This can be due to changes in infrastructure, workflows, economic factors, employee preferences, and/or employee preferences.

These are obsolete systems that were in place before the start of the business.

Legacy systems are computer systems that were created many years ago and have not been updated for decades. Although they still have some functions, their functionality may have changed over time. The programming language used to create them might be out of date and make it difficult to use or fix bugs. Many organizations choose to get rid of legacy systems and upgrade their software systems to be more user-friendly.

What are some of the disadvantages of using legacy systems?

Legacy systems can lead to big problems. Legacy systems can be a problem because they are not designed to scale up or meet modern requirements. This can put companies at risk and limit their growth potential. Legacy System Maintenance It can be costly to upgrade, slow development, and be cumbersome.

High Maintenance

A report estimates that 25% of IT budgets go to maintenance and support costs for legacy systems. As technology improves, so will the costs. If a system is outdated, there are no people to call if it fails.

It is better to be proactive than reactive and migrate to new technology. Performance can be negatively affected by legacy systems: slow loading screens and long load times all contribute to low satisfaction levels.

Concerns regarding data security

While legacy systems may be designed with minimal security in mind, modern hacking techniques can result in serious security breaches.

Cybercrime is becoming more common. It is important to be aware of all potential vulnerabilities. A company's reputation can be damaged if it puts sensitive data at risk.

Business Opportunities

Long development cycles can be caused by the need to interface with older systems. This can limit growth opportunities and leave less room for innovation. Legacy systems are limiting businesses' ability to profit, increase long-term profitability, and remain competitive. Businesses can be hurt by outdated systems, which can lead to costly mistakes and raise costs.


Every business must deal with integration. Many times, newer technologies won't allow interaction with legacy systems. Legacy systems are built using old technology and are therefore incompatible with modern technologies.

An organization is faced with difficult decisions. They must decide whether to upgrade their systems or continue using them. This limits their ability to adapt and grow in the way they desire.

Compliance is a challenge

Companies must follow strict compliance standards today. These laws are constantly changing and may not be possible for legacy systems.

Many companies have sensitive customer data. Unauthorized access to customer data can have a devastating effect on a company's image and revenues.

Privacy and security compliance are vital. They are designed to protect customers from possible harm from serious violations of data protection regulations.

Why are companies still using legacy systems?
Why do companies continue to use legacy systems?

Legacy systems can still be used today by companies because they have been around for so many years and are tailored to each company's specific needs. It is difficult to get rid of them.

The system works well, and the organization doesn't see any reason to make changes.

Some organizations may be afraid to adapt to new technology and keep their old systems.

A redesign or rebuilding of the system would cost too much for an organization.

Legacy System Modernization

Many businesses find that systems that were successful a decade ago are no longer relevant and can be a barrier to innovation. Legacy systems can be expensive to maintain, difficult to upgrade, and even more difficult to access securely.

When computers and software were first developed, they were slow and difficult to use. Modernization allows companies the freedom to get rid of these systems, making their work more efficient and, ultimately, cheaper.

Modernizing legacy systems can be costly and take many months, if not years, to complete. However, it is something that every company will need. These are the questions to ask before deciding if your company should modernize.

Does ineffective technology cause the company problems?
Is our data more secure than it could be?
Is there any technology that would prevent me from offering better customer service?

It's a good time to make a change if you answered yes to any of these questions.

Migration of legacy systems to the cloud

Most likely, you've heard about large companies such as Delta Airlines and Coca-Cola migrating legacy applications to cloud platforms. Is this something you should do for your business?

A legacy system can have devastating effects. Cloud platforms are a great choice. Cloud migration is much easier. Cloud migration reduces the chance of a system breakdown. Access to the data is possible from any location.

It's also secure and cost-effective.

A Successful Data Migration

Data migration involves multiple steps. It is not as easy as simply copying data from one computer and pasting it into another. The first data that needs to be extracted must be done. This data could be scattered across many platforms, so it is important to compile it correctly.

Transform data to match the new formats. You can eliminate data that is duplicated, incomplete, or poorly structured to prevent quality problems. To ensure that the data can be read and used with the new solution, validation is required.

Legacy systems can often be a hindrance to businesses and make it difficult for them to run as smoothly as possible. These old systems could be a minefield that is hindering your company's progress. It is time to face the facts and move to something more user-friendly.

It may not be something you wish to do, but it might be necessary to achieve your company's goals. Our tools must adapt to changing circumstances.

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