In the ever-evolving world of technology, what was once new quickly becomes old, and today’s cutting-edge solutions can soon turn into tomorrow’s legacy systems. Whether we’re talking about wireless LANs, DVDs, or web-based technologies, they all have a shelf life. This post delves into how to manage and transition from legacy systems in your organization, offering general guidelines to help you navigate this common challenge.
The First Problem: The Push for New Systems
One of the biggest challenges with legacy systems is the often irrational push to replace them with newer systems. Customers are frequently convinced that they need faster, more user-friendly systems. We replace personal computers with faster models, even though many users only use them for word processing and email. This mentality feeds into the notion that “old” systems are inherently problematic.
What often happens is that a new system, which might be significantly more expensive and not necessarily better, replaces an old one. This occurs due to several reasons:
- Failure to Translate User-Friendliness into Business Benefits: Organizations often fail to maximize the business advantages of user-friendly systems.
- Lack of Process Engineering: There’s often a failure to use process engineering to optimize the benefits of a new system.
- Inadequate Organizational Changes: Organizations may not make the necessary changes to take full advantage of the new technology.
- Misunderstanding System Capabilities: There’s sometimes a lack of recognition that the new system does the same things as the old one.
- Swapping Problems: Replacing old systems often just trades old problems for new ones, such as “inflexibility.”
Addressing the Root Causes
Before rushing to replace or re-engineer a legacy system, it’s crucial to understand the issues with the existing system. The IT department often proposes immediate replacement because they don’t fully grasp the system’s problems. Here’s how to start:
- Ask the Right Questions: Start by asking questions like, “What is the problem?” and “Why is this a problem?” Explore solutions like process engineering or outsourcing parts of the process, and ask why these haven’t been considered if they haven’t.
- Analyze Problems with a Structured Approach: Use a structured method, such as the Kepner-Tregoe approach, to analyze legacy system issues. Break down the problems into clear, measurable terms and avoid generalities like “low productivity” or “inflexibility.”
- Determine the Causes: Use past information and experiences to identify possible causes. Creating a matrix that categorizes potential causes as “likely” or “unlikely” can help pinpoint the root of the problem.
- Test the Causes: Once potential causes are identified, ask how each one explains the specifics of the problem, such as the timing, location, and extent of the issue.
- Confirm and Address Causes: Validate your assumptions by testing solutions and observing the results. This step ensures you understand the causes before proposing fixes.
Options for Replacing Legacy Systems
There are several approaches to upgrading legacy systems. Choosing the right one depends on your organization’s specific needs and constraints:
- User-Friendly Interfaces: Add more user-friendly interfaces and tools like scanners or OCR technologies to the existing system. This approach works well when the underlying code and infrastructure are robust and reliable.
- Database Replacement: If the code and user interface are solid but the underlying system is problematic, consider replacing part or all of the existing database. However, proceed with caution and potentially replace only a subset of the system.
- Running Old and New Systems Simultaneously: Sometimes, parts of a system can be upgraded by replacing problematic modules with new technology while keeping the rest of the system intact. This hybrid approach allows for gradual transition.
- Outsourcing Processes: Outsourcing some or all processes to external specialists can be a viable solution, especially if the legacy system needs to interact with newer systems.
- Gradual Replacement: Replace functional areas of the old system incrementally. For example, when updating a financial management system, you might phase in new components one at a time, like billing functions.
Benefits of a Step-by-Step Approach
A gradual approach to replacing legacy systems offers several advantages:
- Measurable and Reversible: The process is controlled and can be scaled back if needed.
- Knowledge Transfer: Business and IT units gain experience with new technology incrementally, reducing the risk associated with full-scale implementation.
- Targeted Implementation: Focused replacement efforts make it easier to monitor and manage benefits.
- Reduced Investment Risk: Incremental investment lowers the risk of sudden, large-scale expenditures.
- Manageable Scope: By keeping the scope manageable, you avoid common project management pitfalls.
Transitioning from Legacy to Modern Systems
One of the biggest challenges in transitioning from legacy systems is determining who will handle the task. In today’s IT market, skills in modern languages, system architecture, and software solutions are highly valued, while the expertise to maintain legacy systems is often overlooked.
This imbalance can lead to a situation where many volunteers want to implement new systems, but few want to maintain the old ones. A common solution is to outsource legacy system maintenance, but this is easier said than done. The complexity of legacy programs is not always apparent, and it can take time for external contractors to get up to speed. Moreover, until new solutions are fully proven, the business still relies on the legacy system.
A strategic approach is to assign responsibilities for both the old and new systems to your in-house staff, as Dave Kohn did when managing the Australian Industry Development Corporation in the 1990s. This ensures a smoother transition and better knowledge transfer between internal staff and external contractors, providing a more secure and progressive environment.
Expiration Dates
One common mistake when replacing legacy systems is forgetting that the “new” technology will eventually become old, too. For example, those insisting on using voice systems in banking may overlook the advancements in ATMs, internet banking, and phone banking. It’s wise to consult with research firms and consider whether your new system might be outdated before reaching its expected lifespan of 15 to 20 years.
Risk Management
Large-scale system replacements come with high risks — research suggests that 80% of such projects fail. To manage these risks, follow these checklist items:
- Test the Reasons for Replacement: Ensure the reasons for replacing a system are sound and reversible.
- Consider Gradual Replacement: Think about a step-by-step, incremental approach to replacement.
- Evaluate External Resources: Consider the role of external resources in the replacement process.
- Incorporate Organizational Changes: Ensure that any necessary business, personnel, or organizational changes are considered.
- Have a Management Process: Make sure there are management processes in place to control the replacement project.
- Develop a Risk Management Strategy: Create a strategy to manage the risks associated with the replacement.
- Hire Top Project Managers: Employ the best project managers to oversee the process.
- Think About Business Impact: Consider if any of your staff have suggestions that could eliminate the need to replace the legacy system.
- Understand the Lifespan of New Technology: Ensure that someone on your team is aware of the expiration date of the new technology being implemented.
Conclusion
Managing legacy systems requires a careful balance between preserving valuable systems and embracing new technology. By taking a structured approach to problem-solving and considering gradual transitions, you can ensure that your organization remains agile and ready for the future without falling into the trap of unnecessary or poorly executed system replacements.