A legacy is usually a good thing, especially if it comes from a rich uncle. A legacy system, however, is often a hindrance.
Startups are uncluttered by the past and are lean enough to pivot. Enterprises can afford upgrades. But mid-sized businesses are sometimes in the middle – dragged down by legacy systems, yet unable to function without them.
The real question is knowing when a system moves from a manageable compromise to a genuine business constraint. We’ve polled our experts to find out when a business leader might wait another quarter or year, or when it’s time to move on.
Is growth disproportionately complicated? If launching products, onboarding customers, or adapting to changing markets is too expensive or too slow, then it’s time to turn the page. The drain may affect the bottom line, or it may just quietly strangle the efforts of your best people.
Have you stopped trusting your data? Are different departments keeping their own numbers, are simple reports becoming difficult, or has ‘just in time’ routinely become ‘just too late?’ When underlying system data is no longer trusted, then the system is the issue.
Are expenses escalating? If you’re spending to force other systems and processes to work around the current legacy, or training people in outdated ways of working, then you’re already feeding a black hole. And if replacing the system will be more expensive next year, then it’s time to upgrade.
Are you anticipating exit? If so, the due diligence process will factor in at least double the expected expense of upgrading technology. Put simply, it is far cheaper to replace legacy rather than allow the buyer to reduce their valuation.
Are you exposed to security threats? Old systems are frequently the target for attacks. If the vendor no longer provides security updates, you’re vulnerable, and your accreditations may be invalid. Complicated legacies are undoubtedly the source of cyber breaches, and the effects can be catastrophic.
If you want help working through these questions, you might schedule an IT assessment for growth. It’s basically a meaningful discussion about how your systems may or may not be supporting your business goals.
You’re also welcome to simply ask us a question or schedule a no-pressure chat.
Either way, we hope your legacies bring the good kind of surprises.