Strategic implications of legacy I.T. systems

As we know there are three main types of operational processes – materials, information and customers (pages 18-20).  In the past, the focus has been on manufacturing and customer services, but with the growth of the internet and ecommerce, more and more businesses run information processing operations.   Moreover the increasing sophistication of information systems and internationalisation by firms, means that even materials and customer processing operations are heavily reliant on I.T. systems.

Unfortunately there are a significant number of organisations that operate with so-called ‘legacy systems’, that is to say I.T. systems that are old and failing to cope with the demands of modern business.   In this Deloitte article, three alternative approaches to resolving this issue are discussed – replace, enhancement and switching to an external provider.   None of these are easy to do, and each has its advantages and disadvantages depending on the nature of organisation’s activities.

The moral of the piece is that the best way to proceed is to ensure that there is sufficient investment in I.T., on a continuous basis, to ensure that it is as up-to-date as possible.

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