Businesses must be agile to compete in the modern business environment. Data modernization enables companies to be agile and quickly eliminate inefficiencies, bottlenecks, and unnecessary complexities surrounding legacy systems. Data modernization also provides effective, streamlined solutions to improve data analytics, business intelligence, and decision-making processes throughout an organization.
Legacy systems – systems that are outdated, but necessary for day-to-day operations – are common liabilities found in many seasoned, accomplished businesses.
Pressures to modernize outdated systems can include:
A recent study found that enterprises in the US and UK are losing $140 billion per year due to disconnected data, with 76% of respondents reporting that critical company data is trapped in legacy systems that cannot be accessed or linked to cloud services.
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Often, the idea of replacing a legacy system seems too challenging; maintaining a legacy system seems less expensive and easier to manage than a large-scale modernization project. However, these assumptions are often incorrect.
Legacy systems can be difficult and expensive to maintain, and have a negative impact on the organization in areas such as:
Not only do legacy systems pose a number of direct risks and costs to the enterprise, but there is also an opportunity cost to consider. Delayed data modernization postpones significant benefits which can improve a company’s competitive advantage in many ways.
A recent study found that while replacing legacy data systems represents an initial expense to the organization, the cost outlay is paid back in 11 months, on average. Moreover, the benefits estimated over the first three years can result in an ROI of up to $4.5 million, including improved developer productivity, operational efficiency, and infrastructure and licensing optimization.
Businesses must be proactive about instilling a long-term, goal-oriented mentality into their decision-making processes. Legacy systems can quickly become a burden to other aspects of a business’s productivity.
A study from McKinsey found that data modernization increases productivity by 20-30%, increases employee motivation by 30-40%, reduces defects by up to 60%, and reduces time to market by 40-60%. Each of these factors is critical to business success, particularly in a highly-competitive, rapidly transforming global marketplace.
Data modernization is not only a technical solution to a technical challenge, but a tool for increasing productivity and streamlining the efficiency of processes throughout a business’s operations. Upgrading to a modernized data management system is not an expense, but an investment in the company’s future.
→ Related Blog: How Data Management Platforms Drive Digital Transformation
Data modernization provides companies strategic advantages needed to succeed in dynamic business environments, including:
Although modernizing legacy systems can be one of the most intimidating challenges a company takes on, to ensure future profitability, it is critical for businesses to maximize efficiency, minimize costs, and make the most of modern digital tools.
DataBrains is a certified Tableau, AWS, and Snowflake partner, helping businesses successfully modernize their data management systems. Our data experts help businesses consolidate and integrate disparate data systems, as well as leverage Tableau data visualization tools for increased visibility and accessibility into advanced data analytics.
We offer ongoing expertise in secure cloud managed services and Tableau training services to ensure businesses are maximizing their returns on investment and getting the most value out of their existing data.
If you are struggling to pull valuable insights from costly legacy systems, speak with our data experts to explore data modernization solutions that will help drive your business success.
