"Interestingly, rather than having to convince the CEO or CFO on why your organisation should replace old systems, CIOs and IT Managers are fielding C-level executive requests to do so."
Trends such as the rise of cloud computing, the growth of shadow IT and the challenge of maintaining old technology are driving the movement to replace outdated systems.
The biggest motivator, however, is legacy technology which is restricting innovation at many organisations. This presents a quandary to C-level executives: to upgrade and maintain or replace entirely? As many industries are being hit by innovative disruptors such as Netflix in the video market and Uber in the taxi market - many organisations are wondering if their industries will be next. If this is the case, it will become hard to defend the business and compete with new entrants and new methods if they are relying on older, less flexible and capable systems.
This business challenge creates a pressure on IT department performance and innovation capability. A recent BPI Network survey of 250 business leaders shed stark light on their frustration: while 70 percent of the respondents reported that tech has become far more important to their businesses, only 46 percent rated the level of innovation in their companies' IT groups as good or very high. And only 43 percent said their IT groups are doing a good job of becoming a strategic, responsive and valued business partner.
As a result of this cocktail of potential new competitors taking their market by storm, accessibility of XaaS and cloud platforms, and a perceived internal innovation constraint, C-level executives are now more receptive to replacement projects for legacy systems.
Interestingly, rather than having to convince the CEO or CFO on why your organisation should replace old systems, CIOs and IT Managers are fielding C-level executive requests to do so.
So, how are IT Managers moving forward?
Moving to the Cloud
Increasingly, such an approach is one of the first considerations, particularly with discrete business processes that can be isolated and interact with browser-based front-ends. Progressively moving business processes to the cloud is gaining momentum in part due to lack of capital funding, low entry cost and availability of private clouds, partly because reliability and confidence in cloud delivery is increasing, and partly because objections to public cloud deployments are waning.
Creating an Integration Layer
Another approach is to create an integration layer instead, allowing legacy platforms and applications to work with modern systems and cloud platforms – effectively a hybrid model where some older (indispensable) systems coexist with replacement modern on premise systems and with services delivered via cloud and as-s-service.
Adjusting Entrenched Behaviours
The biggest obstacles to replacing older systems are not technological but human. So any move to replace outdated technology must take into account how that move will affect entrenched business processes and how people do their jobs.
Needless to say, most users don't like change, so changes to business processes brought on by updating old systems are liable to meet resistance. How should CIOs cope?
One approach is to make sure that new customer-facing and employee-facing applications are as intuitive as possible.
It's also imperative to have strong and vocal support from business leadership.
Perhaps most important, make sure that people whose jobs are affected by a legacy replacement fully understand the reasons for that replacement.
BTAS provides you with the option to deploy communications systems on-premise, in the cloud, or as a hybrid combination of both. This gives you control and flexibility to structure your ICT according to business, operational and human factor requirements.
Contact us to find out more...