Outdated technology can drive you up the wall. Whether it’s the lag from slow processing speeds or the frustrating lack of customization, we’ve all experienced the desire to throw our computers out the window when legacy systems no longer meet our evolving needs. Legacy systems and processes not only put a strain on modern businesses, but they also prevent them from reaching their full potential, allowing competitors (with modernized systems) to outperform them. Why do some businesses cling to legacy systems and technology in an era when smarter, more efficient alternatives could save money and boost productivity?
In this article, we’ll look at how legacy systems can hold companies back, as well as how business leaders can begin to transform their organizations and prepare for the future in a more meaningful way.
1. A lack of data results in subpar decision-making.
Data is a business’s most valuable asset. It fuels everything a company does. It is the backbone behind powerful decision-making processes; it promotes agility; it connects teams; and the list goes on. A company absent of data is like a body absent of a brain. However, Aberdeen’s research shows that only 35% of companies are fully satisfied with their ability to use data to make effective decisions (n=584, Source: Aberdeen, April 2023).
Without access to the right data, businesses are unable to draw out important insights that provide a broad perspective and enable teams to make well-informed decisions. The lack of dashboards or real-time data available hinders the process of gathering information or creating reports and ultimately costs companies in ways more valuable than time and money—their ability to make smarter decisions.
2. Outdated technology can lead to negative employee and customer experiences.
The greatest impact on the customer experience is felt through the employees. Poor legacy software can have a direct influence on employee performance, which most organizations cannot afford these days. Legacy systems can stifle productivity and have an impact on how both customers and workers perceive your firm. Aberdeen’s research shows that nearly 1 in 3 companies struggle with the time spent tracking and interpreting data rather than engaging employees, and other top pressures revolve around use experience issues, delayed decision making, and legacy software efficiencies.
While implementing a new system can be time-consuming and uncomfortable, especially with a workforce that’s resistant to change, it will improve the employee experience in the future. Employees can spend more time doing their jobs rather than tracking down data or waiting for management to manually sift through information to make decisions. Having a clear digital strategy and a plan to integrate newer technologies can make this transition significantly easier.
The correct software may help us develop and scale businesses, but the wrong software can squander our time and annoy us. Finally, demands from consumers and staff for greater efficiency are shaping the competitive landscape of the business world. Simply put, if your staff can’t go through the workday without experiencing software irritation and your customers can’t get quick service, they’ll both go elsewhere.
3. Legacy systems are difficult to scale.
According to Aberdeen’s research, scalability for new business models is one of the top digital transformation challenges, along with security concerns and integration (n=360, Source: Aberdeen, April 2023), and legacy systems don’t help this fact. Legacy systems usually require internal expertise, making businesses reliant on employees who understand how they operate. If and when staff depart or retire, this might generate unneeded hassles and stress.
Furthermore, employing old systems to store data implies that businesses are most likely storing it inefficiently. This limits their capacity to retrieve this data quickly and readily, while also increasing the risk of incorrectly storing it. In addition, data may be kept in several systems that do not communicate with one another, resulting in numerous entries and accesses to the same data. Investing in new technology that is easy to use, quick to implement, and has readily available support can help companies bring disparate data sources together and scale their businesses more effectively.
4. Vintage technology is a magnet for hidden costs and maintenance.
Costs might be visible, such as expensive continuous assistance, or they can be hidden, such as duplication of work, wasted time, or larger possibilities that you cannot perceive or take advantage of. Furthermore, with systems that are difficult to upgrade and incompatible with newer and more important features and applications, your project risks rise, increasing the likelihood of time and expense overruns.
Aberdeen’s research reveals that 12% of employee time is spent searching for data (n=584, Source: Aberdeen, April 2023). For context, consider $50,000 of average labor costs and a company with 200 employees spending 12% of their time looking for data. This business incurs $1.2 million in unnecessary costs each year. Transitioning to a more automated infrastructure can increase efficiency and drive up profit margins.
5. Older systems have security flaws.
Increasingly sophisticated cyber threats are the leading drivers for companies to invest in Zero Trust and other security measures (n=210, Source: Aberdeen, April 2023). The threat landscape is constantly changing, and organizations need solutions in place to detect and mitigate these threats. Antiquated systems can be vulnerable to assaults because they may not be maintained by patches that provide security against hackers, malware, and data breaches.
Furthermore, even basic actions like upgrading software or installing new hardware can cause downtime on outdated systems. With legacy systems that do not make live backups, companies risk permanently losing data during these downtimes. Investing in backup and recovery solutions coupled with Zero Trust strategies and technologies can set organizations up to effectively handle future risks.
6. Legacy systems are inefficient and promote low productivity.
Legacy technology is obsolete, inefficient, and unnecessarily complex. Often, the application was custom-built for a certain purpose, but the original creators no longer update it, causing it to become sluggish.
Workforces with old technology are losing substantial amounts of time due to manual procedures, a lack of interoperability, and counterintuitive interfaces that are difficult and cumbersome to use. Rather than focusing on things that are critical to their professions or achieving the company’s goals, they are wasting time on administrative chores that should only take minutes. They may be bouncing from system to system, which can have a significant impact on their productivity and capacity to respond in a timely manner.
Do the research and learn from the Best-in-Class.
While many businesses continue to use obsolete technology for claimed cost savings or dependability, the hazards outweigh the advantages. Not sure if your company’s technology is up-to-date? Take this assessment to see how you stack up against the competition.
If your company could benefit from the research behind a technology refresh, Aberdeen is here to help. Connect with us today to discover how our analyst-driven insights can help you ignite new market opportunities and keep your business ahead of the curve.
Some of the data and insights from this article were sourced from the Spiceworks Voice of IT community. The Spiceworks Voice of IT gives IT pros a chance to have their collective voices heard, and gives IT vendors and marketers a chance to hear those voices.
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