CAPE digital solutions

Legacy Replacement

Modernize Legacy Systems with Low-Code Solutions

In the quest for modernization, many organizations struggle with outdated legacy systems that cause significant problems. These systems often come with high maintenance and support costs, requiring special skills and resources that drive up expenses. 

Additionally, they don’t integrate well with newer technologies, leading to fragmented processes and data silos that reduce overall efficiency. Lastly, legacy systems are often more vulnerable to cyberattacks, putting sensitive information at risk and making it harder to comply with regulations. 

Tackling these critical issues is essential for turning legacy systems into modern, agile applications that enhance efficiency and support sustainable growth. 

Extend, Modernize, or Replace Your Legacy Application(s)

IT should enable progress, not slow it down. Keeping up with changing business needs and supporting customized processes is essential to improving user experience. However, legacy systems can become major bottlenecks. There are three main approaches to creating agility around legacy systems: extending, modernizing, and replacing. 

Extending

This approach involves adding responsive and scalable solutions around the existing legacy system, creating a flexible layer that enhances functionality in the short term. While this method offers immediate benefits, it does not address the root cause of the system’s limitations. 

Modernizing

Another strategy is to replace parts of the legacy system incrementally, integrating them back into the core. For example, one might start with the accounting module or supply chain module and, after successfully implementing it, move on to the next component. This staged approach allows for a smoother transition and continuous improvement. 

Replacing

The final option is a complete system overhaul, often referred to as a “big bang” replacement. This method involves switching to a new system all at once, which can be challenging but ultimately provides a fresh start with modern capabilities.

Each of these approaches offers different benefits and challenges, and the choice depends on the specific needs and circumstances of the organization. By carefully selecting the right strategy, businesses can ensure their IT systems support rather than hinder their growth and efficiency. 

How low-code can help replacing legacy

Rapid Development and Deployment

Utilizing low-code platforms enables you to spend more time understanding your business and identifying its specific needs. 

Low-code can be used to develop custom applications within days and begin testing with your business immediately. This approach facilitates quick feedback loops, ensuring the IT solutions that are build to be a perfect fit for your operational processes while also enhancing overall efficiency. 

This agility allows your organization to swiftly adapt to changes in the business environment, ensuring you stay ahead of the competition.

Flexibility

 

Low-code applications are built from the ground up, free from pre-existing constraints. This allows you to design software that perfectly aligns with your operational needs, enhancing efficiency and fostering innovation without compromise. 

Combining this with enhanced integration capabilities allows you to create application with all kind of information available from multiple sources and pushed back if required. The applications can be deployed in the cloud or on-premises, and the technology allows you to scale both vertical & horizontally.

Rapid Development and Deployment

 

Achieving operational excellence requires streamlining processes. The real experts are the employees who master the workflows and understand what needs to be done. It’s essential to analyze and optimize current processes before developing software solutions.

Low-code platforms enable business professionals to directly contribute to application development, allowing them to focus on improving processes first and then creating tailored solutions. This approach simplifies the development process by combining business expertise with custom application development, reducing the need to bridge the gap between business and IT and resulting in more efficient IT solutions.

Enhanced Integration

Legacy systems often struggle to integrate with newer technologies, creating data silos and operational inefficiencies. 

Low-code platforms excel at integrating with both existing systems and third-party applications. Whether you need to connect with modern CRM tools, cloud services, or other enterprise systems, low-code provides seamless integration capabilities. 

This ensures that your new applications work harmoniously within your existing IT ecosystem, providing a unified and efficient operational environment.

Case Study: Modernizing Legacy Systems with Low-Code

A logistical services provider, was struggling with an outdated legacy system that managed orders and service data. The system was a monolith, difficult to maintain and hard to implement new functionalities to keep up with customer demands and growing order volumes. This led to inefficiencies and increased operational costs. By adopting a low-code platform, the company developed a custom application that replaced the legacy system and integrated seamlessly with their existing financial management, warehouse management, and BI tooling. This new application was user-friendly, scalable, and provided the flexibility needed to adapt to future changes.

The results:
1) Streamlined Order Management: The new system reduced manual work and operational costs by improving order management and error handling.
2) Features added every two weeks: Instead of a deployment cycle of 6 months, features could be added every two weeks the legacy system was hosted on an on-premises system which was costly (up to 1 MIO per year for hosting). The new cloud was 10 times cheaper and enabled the client to maintain this themselves creating less dependencies.
3) Enhanced Integration and Analytics: Integration with modern tools provided real-time data and analytics, enabling better decision-making and strategic planning.
4) Improved User Experience: The intuitive design of the new application aligned with the workflows of the employees, leading to higher productivity and job satisfaction.

Low-code development offers a powerful alternative to the traditional approach of replacing legacy systems. By enabling the creation of customized applications that support and enhance your unique workflows, low-code platforms drive efficiency, reduce costs, and improve employee satisfaction. Embrace the flexibility and agility of low-code to modernize your IT infrastructure and position your business for future success.

Frequently asked questions about Legacy Replacement

When should i replace my legacy system?

Consider replacing your legacy system when it negatively impacts business operations, efficiency, or security.

Key indicators include: rising maintenance costs, incompatibility with modern technologies, performance and scalability issues, security vulnerabilities, lack of vendor support, and user dissatisfaction. If your system hinders adoption of new tools, poses security risks, or frustrates employees, upgrading to a more modern solution can improve efficiency, compliance, and overall business agility.

In software, the term “legacy” refers to older systems, applications, or technologies that are still in use but are often outdated and may no longer meet the current needs of the organization. Here’s what “legacy” typically implies things as: Outdated technology, Limited integration capabilities, High maintenance costs, Performance limitations, Security eisks and Diminished support

While legacy systems were once state-of-the-art, they often become a hindrance as technology advances and business needs change. Transitioning away from legacy software to more modern solutions is often necessary to improve efficiency, security, and scalability.

Companies often hesitate to replace all of their legacy systems due to the high costs, potential business disruptions, and the complexity of migration. Legacy systems are often deeply integrated into business processes, and their stability and reliability are well understood, making organizations reluctant to risk transitioning to new systems.
 
Additionally, resistance to change, regulatory considerations, and strategic prioritization of other initiatives can lead to a preference for maintaining or gradually modernizing existing systems rather than undertaking a complete overhaul.

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