How Legacy Technology is Hurting Your Competitive Advantage

How Legacy Technology is Hurting Your Competitive Advantage

Companies still clinging to their legacy technologies will soon find it difficult to stay competitive in their industry. Technology continues to evolve at a rapid pace with new and improved systems being developed every day. Modern technology is outperforming legacy technology in every way possible. Those who choose to digitally transform will succeed, while those who wait will slowly lose their competitive advantage..

Customer experience is a strategic area often hindered by legacy technology. Legacy solutions only offer the most basic way to organize contact information and manage sales / support processes. Most of these systems fail to integrate with modern applications, have minimal real-time information, and output crowded spreadsheets of information to sift through. Such basic functionality slows down the customer experience and ultimately harms the satisfaction customers receive. 

As customer experience can be a valuable competitive advantage, companies are beginning to adopt more sophisticated and modern systems. With modern systems, companies can develop a multi-channel strategy to communicate on whichever medium the customer prefers (ie. social media, website, phone, email etc…). More powerful systems will analyze the customer data and provide users with intelligent insights to optimize their strategy for higher satisfaction. But most importantly, the systems offer powerful ways to automate internal tasks for a more seamless customer experience.  

Cost leadership is another strategic area relying on the quality of systems a company has in place. Most legacy systems were built at a time before big data became mainstream, and therefore the systems have minimal data analysis capabilities. Advanced data analysis is what drives efficiencies in a company. And without a system to do this effectively, companies will struggle to lower the costs of their products. 

More modern software and systems collect mass amounts of data in order to streamline production efficiencies. Even the simplest of systems are able to automate tasks that once had to be done manually, freeing up workers for other activities. More advanced data analytics can provide optimization suggestions to further speed up the process. Modernizing systems will lower costs through efficiency gains, allowing companies to maintain competitive pricing for their products in the market. 

Upgrading legacy equipment and systems can be an overwhelming task. In addition, setting reasonable objectives, identifying key processes and finding the right technology is a significant challenge. Establishing data governance and delivering training are also required tasks for the upgrade.

Reach out to your trusted digital transformation partner and discuss ways to replace legacy systems and move to the next level of competitive advantage.