A legacy system is a process or product that happens to be obsolete and no longer applicable in the modern context. A typical example of these systems is obsolete application software, programming languages and computer systems. It will be surprising for many readers that there are a lot of companies around the globe which still prefer to use these outdated systems over the more advanced and sophisticated ones.
Whenever you see a modern, sleek building of a bank, you feel that many enterprises have adjusted nicely with the time. However, modern buildings, extensive use of latest software and other facilities are just a fig leave that they use to conceal the truth. Many of these enterprises are still using legacy systems that date back to 80s, 90s and even from 70s.
There are many other heavily regulated industries such as a big percentage of insurance companies that are struggling with the same problem. Many of the infrastructures written in COBOL are still fully functional, and a number of organizations are still using them. Their modern fancier front desk facing apps are just a bolt on the obsolete devices which are still in their service.
Although, use of a legacy system is a problem without any doubt yet it is, in no way, a recipe for disaster. Many organizations have successfully combined the outdated operations systems in the backend and mobile business at the front end. Sometimes, it is preferable and beneficial to upgrade your existing systems instead of spending heavily on the new technology.
Some companies, in their bid to modernize themselves, start with moving only their key strategic parts, necessary to take their business forward. Still there are organizations that blindly adopt the new technology just for the sake of modernization and have to regret their decision in the log run. The point here is making the right choice. If you believe that you need to introduce new technology in the workplace, go for it otherwise you are not alone in the world when it comes to using legacy systems.
There are many business leaders who reboot their entire enterprise in a hope to increase their profits within a fortnight. Instead, it is better to focus on innovation and introducing small changes at a time. Similarly, there are people in every organization who resist the change or need time to adjust to it. Therefore, their productivity levels can fall considerably if you try to bring abrupt changes in their working style.
It is also pertinent to note that higher authorities usually reject the budgets for overhauling of the entire legacy system because it is a very costly process. But – they are very likely to approve small budgets for smaller projects. However, not many organizations know where to start the transformation process from. This is where they need to formulate an effective transformation strategy incorporating the opinions and requirements of not only business owners and managers but also of employees who are going to execute that transformation.
Finally, businesses should never bind themselves to the outdated and obsolete legacy systems. They need to move on and adopt the modern technology to survive in the extremely competitive business world. However, the transformation has to be strategic and not on the cost of the entire enterprise.