3 Ways Legacy Systems are Holding Back Digital Transformation

Jan 4, 2017
7 Min Read
3 Ways Your Legacy System is Holding You Back

3 Ways Your Legacy System is Holding You Back

Digital transformation is all about leveraging technology in new ways to improve customer experience, empower data-driven decision making, and increase corporate agility through business-IT integration. According to IDC, by the end of 2017, 67% of Global 2000 enterprises will have digital transformation at the center of their business strategy. Yet a surprising number of leading companies are letting a common enemy stand in their way— aging legacy systems.

If your organization is still clinging to a legacy system, here are three reasons you should consider moving onward and upward— to an online database platform:


1. Lack of Data Access & Real Time Analysis

The nature of legacy ERP systems requires companies to have a multiple-tiered system of cobbled-together architectures to meet various departmental needs. This patchwork approach results in silos of business information and inhibits the ability to share data across departments.

The rigid, hard-coded nature of legacy systems makes the task of bringing all this siloed data together challenging. Teams often have to spend valuable time updating and reconfiguring data in a way that is accessible to all stakeholders. As a result, your leaders may struggle to obtain the real-time business intelligence needed to guide decision-making.

Online database platforms enable real-time aggregating, streamlining, monitoring, and transferring of data throughout business units— which results in more agility and better decisions. Role-based permission controls allow senior leadership to decide who can view specific data sets and who can input new data.


2. Data Inconsistencies

As a leader, it’s hard to take action when you can’t be sure whether the data you are looking at is correct or not. According to F1F9, a financial modeling training firm, as many as 88 percent of all spreadsheets contain errors.

One reality that leads to data inconsistency in organizations using legacy systems is various departments and team members often find it necessary to create personalized spreadsheets that suit their particular use, resulting in multiple versions of the same data presented with different conventions for naming, measurement, or categorization. When teams want to come together to make decisions, they often find that it’s difficult to consolidate their spreadsheets and ensure data accuracy.

Online database platforms do more than just get rid of error-riddled spreadsheets and decentralized reports— they allow comprehensive data unification and standardization, as well as full audit trails and organization-wide transparency.

Stop using spreadsheets for jobs they were not intended. Check out the free eBook, "Understanding the Hidden Costs of Spreadsheets for Managing Projects" and other tasks better suited for an online database platform.

Using Spreadsheets to Manage Projects


3. Unnecessary Costs

Most enterprise organizations spend the majority of their IT budget on maintaining their legacy system. The burden of paying operational costs and software licenses can significantly limit an IT team’s ability to equip the organization with the tools and support necessary to pursue digital transformation.

Traditional IT approaches also expose enterprise organizations to several other costs that they can avoid by moving to online database platforms:

  • Excessive time and cost of developing applications
    Large enterprise organizations typically save weeks or months of development time by using online, cloud-based business application platforms. Not only does this result in cost savings, but it also leads to increased staff productivity, business process time savings, and the value new applications bring to the company. The cost savings associated with online database platforms is illustrated in a recent study completed by Forrester, which found that the average organization saw a cost savings of $19,231 per new app by using QuickBase. These cost savings enabled composite organizations to build 55 new apps a year, resulting in a three-year, risk-adjusted total cost savings over earlier methods of $2,538,462 and a ROI of 260%.
  • Delayed Updates
    IT departments traditionally have to commit a lot of time and resources to the task of maintaining and updating applications. Online database platforms provide real-time updates, which can result in substantial savings over the course of a year.
  • Excess IT Staff
    Companies that are still using legacy systems need larger teams to maintain their aging system and to develop new applications through older, time-consuming approaches. When a company moves to an online database platform, they often find that they can significantly reduce the number of developers they have in-house.

Legacy Systems - Digital Transformation


Recomended Posts