Is legacy technology derailing your digital transformation plans?

Many companies find themselves stuck in a maze of old technology – outdated systems that hold back new ideas, slow down work, drive-up expenses and cause headaches for digital transformation teams. Surprisingly, a recent Deloitte study showed that half of companies say legacy technology is a big problem for keeping costs down. This means lost chances, unhappy customers, and trouble keeping up with rivals.

The appeal of old technology comes from how familiar it is. It’s the devil you know, the system that “does the job.” But this comfort has a high cost. Here’s how old tech eats away at your profits:

• Lack of Flexibility
  Legacy systems are often rigid making it hard to adjust to new business needs or work with fresh technologies. This rigidity limits the chance to profit from new opportunities and react to market changes.
• Upkeep Expenses
  Older systems need a lot of resources to keep running. Fixing outdated software keeping old hardware working, and keeping experts who know these systems all add to a big IT budget.
• Weak Security
  Outdated software solutions often have many security holes putting companies at risk of costly data breaches. Updating these systems isn’t just a choice, it’s a must to protect your data.
• Stifles innovation
  Old tech stands in the way of progress. Trying to use new technologies or adopt cutting-edge answers becomes a tough job. This holds back the ability to create new products and services slowing down growth.

So, how do we safely navigate away from legacy systems and accelerate digital transformation plans? Here’s a three-pronged approach:

• Strategic Assessment
  Conduct a thorough analysis of your existing IT infrastructure. Identify the legacy systems that are most detrimental to your agility and cost efficiency. Prioritise upgrades or replacements based on strategic impact and cost-effectiveness.
• Modernisation Roadmap
  Develop a roadmap for modernisation that considers a mix of approaches. This might include cloud migration, system integration, or even complete system overhaul. The key is to prioritize solutions that deliver the most significant cost savings and performance improvements.
• Embrace New Technologies: Don’t let fear of the unknown hold you back. Explore emerging technologies like generative AI and automation that can streamline processes, enhance efficiency, and drive innovation.

The transition from legacy tech to a modern IT environment isn’t without its challenges. However, the long-term benefits are undeniable. By embracing innovation and strategically modernizing your infrastructure, you can escape the cost spiral of legacy technology and unlock a future of agility, efficiency, and growth. Remember, the cost of inaction is far greater than the investment in transformation. The time to act is now.

For more information on how PhixFlow can help your business with legacy system modernisation, please book a demo.