Counting the Cost of Legacy Systems

According to Mike Maltby, Product Manager at Eagle Investment Systems, there’s both a science and an art to arriving at an estimated return on investment when it comes to legacy system replacement.

One of the biggest challenges in the decision-making process to replace legacy technology is demonstrating a return on the investment, or ROI. System replacements, described by one consultant as “invasive” in nature, are not only expensive undertakings, but also will almost always cause significant disruption to business functions and require extensive education programs to re-train users. For this reason, executives will often ask ahead of any system replacement initiative that those endorsing it actually quantify the value to the enterprise before taking on such a large project.

The decision to replace a legacy system is rarely, if ever, one that is made purely on the basis of an ROI calculation. However, this kind of analysis can be a powerful tool in securing buy-in from senior management, as well as future business users. Not to be overlooked, it can also go a long way to help make the business case ahead of a transformation and make the end-state solution clear at the outset of an implementation. In addition to delivering a useful metric for management, an ROI exercise will also inform the ultimate system replacement strategy and help shape the solution that is deployed.

Read the full article at Eagle Exchange.

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