The Dangers of Legacy Systems
Before we get started, what classifies a legacy system? Any system that is outdated but still in use. This could include hardware, software, programming languages, etc. Often, they are no longer updated or supported or available to purchase, causing a multitude of business problems.
However, whether we like it or not, legacy systems are a part of most businesses in some capacity. It could take the form of ancient excel spreadsheets with formulas so complex that one false move and everything breaks, or older business systems that refuse to integrate with each other causing efficiency issues, poor user experience and potential security risks.
For some industries and sectors legacy systems have a huge impact on their business:
- Nearly ¾ (74%) of Manufacturing companies are dependent on legacy systems and spreadsheets for business operations
- 92% of the UK’s financial services firms still rely on legacy technology
- 50% of the UK government’s annual IT spend goes on the maintenance and managing obsolete legacy systems
Why are legacy systems dangerous to a business? Simply put, they can hinder an organisation’s operations, growth, and competitiveness. They are built on outdated technology stacks, making them incompatible with modern software and hardware, leading to integration challenges, limited interoperability with newer systems, and difficulty in adopting emerging technologies.
Legacy systems are often no longer supported by the original supplier or developer, making it difficult to obtain technical support, software updates, or patches. This exposes businesses to the risk of data breaches, cyberattacks and compliance violations. Older systems are more susceptible to security vulnerabilities due to outdated or unsupported software components, weak authentication mechanisms, and lack of regular security updates.
They are also costly to businesses, they require significant ongoing maintenance to keep them operational. Maintaining and supporting legacy systems often requires specialised skills and knowledge that may be scarce or expensive to hire. As experienced personnel retire or move on, businesses may struggle to find replacements or train new staff, leading to knowledge gaps and increased risks.
Legacy systems often lack the scalability needed to support growing business requirements. As the business expands or evolves, legacy systems may struggle to handle increased data volumes, user traffic, or transaction processing, leading to performance bottlenecks and system downtime. Implementing new features, customisations and modifications to legacy codebases can be complex and time-consuming, limiting agility and innovation.
And of course, the poor user experience for employees and customers due to outdated user interfaces and cumbersome workflows. This can result in decreased productivity and dissatisfaction among end-users.
You may be thinking, I have a few of these systems in my business, what can I do about it? Legacy modernisation could be the answer.
The Benefits of Legacy Modernisation
In today’s fast-paced business landscape, the modernisation of internal systems is not just a choice but a necessity. By updating outdated processes, companies can revolutionise their operations, increase efficiency, and ultimately, drive success.
The benefits of system modernisation are manifold. It enhances productivity by streamlining processes and automating tasks, leading to cost savings through reduced maintenance expenses, optimised resource utilisation and decreased downtime. It reduces security concerns by bringing security measures up-to-date, ensuring authentication methods are in place, that sensitive data is protected and regulatory compliance is met.
Crucially, modern systems enable businesses to better understand and respond to user needs, whether those are internal staff members or external customers. Outdated internal systems can frustrate employees, hinder collaboration, and impede workflow efficiency. By providing modern tools and technologies, businesses can empower employees to work more effectively, collaborate seamlessly across departments, and focus on high-value tasks that drive innovation and growth.
Legacy systems often struggle to scale with the growing demands of the business. Modernising internal systems allows for greater scalability, enabling businesses to adapt to changing market conditions, accommodate increased workloads, and support future growth initiatives. In today’s digital age, businesses that fail to modernise risk falling behind competitors who leverage the latest technologies to innovate and deliver superior products and services. By investing in internal system modernisation, businesses can gain a competitive edge, differentiate themselves in the market, and stay ahead of industry trends. Investing in legacy modernisation isn’t just about staying current; it’s about future-proofing your business and ensuring long-term success in an ever-changing landscape.
How Custom Software Development play in resolving these issues?
Here at GCD, we build custom software solutions and digital products that help businesses innovate and grow. Modernising legacy systems and applications is something we are passionate about. Digital transformation is a powerful tool for businesses, it’s the key to unlocking growth, differentiating and innovating. Custom software offers a pathway to modernisation by migrating outdated systems to contemporary platforms and technologies. Whether it’s re-architecting applications, refining codebases, or enhancing user interfaces, custom software development optimises scalability, performance, and usability.
Moreover, custom software bridges the gap between old and new, enabling seamless integration with modern applications and third-party services. This fosters data exchange, automates workflows, and breaks down silos, enhancing business agility. Designed for scalability, custom solutions evolve alongside the business, accommodating growth and changing requirements without the constraints of legacy systems.
With a dedicated UX UI Design Team our software solutions and digital products are designed and built with the user at the centre. This user-centric approach ensures intuitive interfaces and personalised experiences, enhancing user satisfaction and productivity.
Custom software development requires investment, it isn’t an off-the-shelf solution, but it yields long-term cost savings by reducing reliance on expensive legacy systems and minimising maintenance expenses. It’s a strategic approach to modernisation, driving operational efficiency and supporting digital transformation for sustained growth and success. Custom software plays a crucial role in addressing the pain points associated with legacy systems by providing tailored solutions that meet the specific needs and requirements of businesses.
Ready to digitally transform? Get in touch for an informal chat with a member of our team about your business’s outdated legacy systems.
