Progress is not only a boon to organizations but also a bane. In the IT world, progress is often directly correlatable to upgrading and replacement of existing systems in order to keep your organization competitive.
Knowing when to switch out an IT resource over updating it requires a certain degree of intuition but also massive insight and awareness into the industry. Let’s look at a few telltale signs that a system may have outlived its time.
Dysfunctional workflows and processes
Outdated technology can not only be limited in capabilities, but also in the constraints it provides. If your technology is holding you back from putting together the most capable teams, swap it out. For instance, communication tech might be limited, leading to you having to put together a team in your local area.
Inability to capitalize on new opportunities
Companies burdened with legacy infrastructures are at risk of being disrupted by competitors taking advantage of new technologies. Furthermore, newer systems often are not backward compatible due to the additional resources required, therefore updates and replacements are a must in this scenario.
Slowing growth
Growth projections can be a strong indicator that your technology is less than suitable. If companies are finding the cost of running the business is growing as fast or faster than the top line, the culprit is almost always a technology gap. Luckily, the solution is simple – optimize one and improve the other on its own.
Stagnant IT productivity
One of the most significant signs that technology is harming your enterprise is if productivity starts to flat line. Some markers of failing IT tech are if you see your team using supplemental software, coding their own workarounds, or experiencing inefficiencies in patching or updating software. In this case, changes are even more urgent, as time lost will equate to revenue missed out on.
An inability to make changes dynamically in real-time
Building on the previous point, if your IT team is unable to dynamically make updates in real-time, server and technology downtime can increase – effectively creating a scenario where no in the company is doing anything for extended periods of time.
Meko suggests auditing the existing internal technology stack, beginning with an evaluation of the physical connectivity that underpins your operations. “The key to a successful business in the digital world is coupling a scalable, cloud-based tech stack with reliable, flexible internet connectivity,” he says.
Decreasing market share
A declining market share is often due to a bad reputation that your organization might be developing. IT plays a major role in assuring consistent quality, and more often than not, this decline is a reflection on the quality of service and products offered. “Your business unit leaders [may] say that competitors are running rings around you because they have invested in infrastructure that enables them to sense and respond faster to the market,” says Sanjay Srivastava, the chief digital officer for professional services firm Genpact.
Legacy IT is largely monolithic in its design and structure, replacing it can have a significant impact on creating a positive impact on the market at large.
Siloed systems
Over the last decade, as technology has shifted towards openness and integration, teams have been left to work in isolated silos. There’s been a major technology shift over the past decade toward openness and integration. Most platforms have integrations built-in, such as Slack, Github, and Dropbox. This synergy between data-producing and consuming platforms has a value that cannot be denied, and legacy systems make this synergy difficult. As with many system-related challenges, accepting there is a problem is the first and most important step toward resolving it.
It does seem that IT upgrades and replacement can be the solution to a lot of problems. However, organizations should be careful. Attempting to upgrade too many systems at once cannot only significantly inflate the cost and decrease ROI, but can also slow the overall pace and give you a less clear picture of where you’re headed. An enormous amount of work is needed, that much is certain.