3 Ways Legacy Systems are Holding Back Digital Transformation

Perspectives
Apr 14, 2021
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1 Min Read
3 Ways Your Legacy System is Holding You Back

 

 

Organizations focus on building a strong digital transformation strategy for a number of reasons. From seeking to improve the customer experience to empowering data-driven decision making, modern businesses need to find a way to increase agility and better align business and IT teams to fully realize the benefits of digital transformation. And this won’t just come from top-level ERP systemsHarvard Business Review Analytic Services found that 77% of executives believe that successful digital transformation requires innovation coming both at the enterprise level and across departments. 

Unfortunately, many organizations are still clinging to legacy digital technologies like ERPs as their primary method of driving this transformation, even while those systems are rigid and difficult to navigate. Here are three reasons that legacy systems are in the way of achieving true operational agility and flexibility – and how you can supplement those legacy systems with low-code capabilities. 

Lack of data access and real time analysis 

The nature of legacy ERP systems requires companies to have multiple disparate systems to meet various department needs. This patchwork approach results in silos of business information and inhibits the ability to share data across departments. 

Relying solely on 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, leaders may struggle to obtain the real-time business intelligence needed to guide decision-making. 

Low-code platforms that are built for operational agility enable real-time aggregating, streamlining, monitoring, and transferring of data throughout business units— which results in more informed decision makingBy building workflows that run across teams and critical business processes, coupled with permissions from IT, everyone will have access to the data they need – and filter out the noise of other information. 

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 the best digital transformation strategy. 

Traditional IT approaches also expose enterprise organizations to several other costs that they can avoid by leveraging dual-track transformation. Large enterprise organizations can save weeks or months by using low-code development platforms – and this saved time equals money. Performance Waste Solutions, for example, found savings of over $100,000 per year with their improved efficiency with Quickbase managing key processes.   

Further, organizations can reduce the resources they need to devote to IT and maintaining that legacy system, when those closest to the business can make the changes they most need to make to optimize their workflows. When a company moves to low-code development platform, they often find that they can significantly reduce the number of developers they have in-house. Coupling low-code with an ERP legacy system can reduce time to value, automate unique processes, and cut down on IT-devoted resources. 

Lack of Flexibility

Lastly, legacy systems do not provide the flexibility and adaptability needed for organizations to adjust to the speed of modern business. The typical business user without familiarity into an ERP or other legacy system will have no way to work with that system to make the changes they need to for their specific work. And when change happens fast, as it often does, IT shouldn’t have to devote its own resources to solve for these new problems.  

Instead, finding a way to enhance your ERP system with a low-code platform will let your organization keep up with the constant changes and meet business goals. With business users having the ability to innovate in their specific areas of work, your organization will have much more operational efficiency and flexibility to respond to change effectively and adapt quickly. With capabilities to innovate outside of your legacy systems, your successful digital transformation will allow you to better serve all teams in the event of change and provide better customer experience as a result.  

Learn more about how to bring about operational agility and better utilize your legacy systems.
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