Other parts of this series:
Most firms are still deeply invested in legacy IT systems. While that might seem like a disadvantage in today’s digital era, legacy investments can be turned into value-add assets.
IT is at an inflection point. Once a behind-the-scenes support system, IT now finds itself at the forefront of driving innovative business services that depend on increasingly complex data analysis delivered at lightning speed—all in the pursuit of pleasing customers and beating the competition.
The stressed out legacy IT environment
Today’s digital demands are placing a multitude of stresses on financial services firms’ IT environments, which were built to process less demanding data volumes and speeds, and simpler transactions. Online and mobile commerce has significantly upped the number of requests systems receive, not to mention the overall exponential growth in the number of users from both inside and outside the company who are accessing company systems for data (a growth that has jumped from hundreds to millions in the last decade or so).
Not only that, industry disrupters can enter today’s business environment equipped with brand new, finely tuned and digital-ready systems, giving them a significant competitive advantage in meeting market demands.
Can your legacy investments still add value in the digital era?
Incumbent financial services firms, like other enterprises, are faced with meeting new digital demands while still reliant on, and deeply invested in, legacy IT systems. The question is, does staying competitive mean abandoning legacy systems altogether (along with a substantial financial investment), or can these systems still add value in a digital environment?
If you’re wondering whether to replace your legacy IT system, the good news is, in many cases a good portion of legacy IT is still viable in terms of meeting growing digital demands. Refreshing your legacy IT is simply a matter of enhancing existing systems with the right digital technology, innovative fintech (financial technology) and new platforms to meet these demands.
Doing so involves establishing an optimal mix of applications based on a disciplined plan for accelerating the journey to digital via legacy. The first step in this journey is active consideration of the latest modernization approaches.
In my next post, I’ll be exploring the options for turning your legacy IT investments into current, value-add assets.
For more information about modernizing the IT environment, please see Accenture’s report, Modernization in the Digital Era.