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legacy systems vs digital transformation

Legacy Systems vs. Digital Transformation: A Roadmap for Seamless Integration

In an increasingly interconnected world driven by technological advancements, the fintech industry has emerged as a beacon of innovation.

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Natasza Mikołajczak

Content Specialist
Szymon Hanzel

Szymon Hanzel

Head of Mobile
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    In today’s tech-driven world, businesses stand at the crossroads of a digital revolution. The challenge? Breathing new life into systems that once powered their success but now crumble under the weight of age and neglect. 

    In an era where the Western IT market is maturing, more and more businesses find themselves grappling with the challenge of legacy systems. These systems, once the backbone of their operations, have become cumbersome liabilities over time. Neglected and outdated, they pose significant risks, from security vulnerabilities to decreased user satisfaction. 

    In this article, we will explore the dilemmas of legacy systems, look at the strategic importance of modernization, and present a clear roadmap for the seamless integration of new technologies. By the end of this journey, you will not only understand the significance of this transformation but also how to navigate it effectively.

    The legacy system conundrum

    Imagine a scenario where a company has an application or system that was once cutting-edge but has been left to gather dust over the years. The reasons behind this neglect can vary—budget constraints, changing priorities, or the departure of key developers. Regardless of the cause, the result is the same: a system that no longer aligns with the company’s goals or industry standards.

    One of the most immediate issues with legacy systems is the accumulation of technological debt. This debt represents the cost of not keeping the system up to date with emerging technologies and best practices. It can manifest as outdated code, obsolete libraries, and a lack of support for modern features.

    As technological debt grows, so does the risk of critical issues, security vulnerabilities, and decreased performance. User complaints may start piling up, and the once-praised system becomes a source of frustration. These are serious potential threats to your business, particularly in sectors like finance, banking, and security, where trust and data security are paramount.

    In an ideal world, every software application would evolve in lockstep with a company’s changing goals and the technological landscape. However, in reality, legacy systems often fall out of sync with the broader vision.

    Consider a situation where a company’s product was designed to cater to market needs A, but market dynamics have shifted toward B. The old system, ill-suited for this new direction, becomes a hurdle rather than an asset.

    Moreover, as developers who originally worked on the system move on, the organization faces a dearth of internal expertise. Hiring specialists to resolve issues and adapt the system may not align with the company’s strategic priorities.

    Reviving outdated systems from a leadership perspective

    Updating outdated systems isn’t just an IT task; it is a strategic imperative, one that requires strong leadership. Understanding the potential benefits and pitfalls is key to steering your company in the right direction.

    Despite the risks associated with outdated systems, over two-thirds of businesses continue to rely on legacy apps or mainframes for core operations. Shockingly, more than 60% of these systems are used for customer-facing applications, as revealed in a 2022 TCS report.

    The same report identifies the primary challenges companies encounter during legacy system updates: integrating with new applications, maintaining agility, and addressing security concerns. 

    On the other hand, migration barriers primarily revolve around fears of security breaches, reliability issues, and operational disruptions. Additionally, many companies struggle with a shortage of internal expertise.

    These challenges and roadblocks are precisely why updating legacy systems is so critical. These systems, when left unattended, evolve into ticking time bombs, jeopardizing security, stifling agility, and bleeding your company’s finances. But once you decide to embark on this journey, a fundamental question arises – how do you approach it?

    Upgrading your technology is a major undertaking that should not be undertaken lightly. At Neontri, we thrive on challenges that others might find daunting—specifically, the revival of aging systems that are in dire need of a refresh. As a result, we have created a thorough roadmap to help organizations through the integration process and ensure a smooth transfer into the digital era.

    A Roadmap for seamless integration

    When it comes to legacy systems, keep in mind that no two scenarios are the same. Each has its own set of challenges and specifications, and each will require a tailored strategy. However, our roadmap can help you chart your course, giving you a glimpse of a seamless integration process.

    Step 1: Analysis

    digital transformation analysis

    Every journey begins with a single step, and in our case, that step is a comprehensive analysis and a carefully crafted proposal. When it comes to revitalizing old systems, quite often the challenge lies in diagnosing issues without a clear understanding of what is malfunctioning. Similarly, even when a system or application remains operational, it may fall short of its revenue potential, and it is important to figure out why.

    When a project lands on our desk, the first order of business is to subject the application to a rigorous audit. We dive deep into the product’s core, leaving no stone unturned. This involves identifying security gaps, analyzing performance bottlenecks, and, most importantly, engaging in candid conversations. 

    We firmly believe in the power of open communication. You should always be able to openly declare your primary issues and challenges when choosing an outsourcing company to work with, and you should have full trust that they will not only listen but also hear your concerns.

    Step 2: Assessment and planning

    digital transformation

    Following the audit, it is important to make sure that all parties are equally aware of the system’s current condition and the urgency of the situation at hand, especially regarding security risks that might have gone previously unnoticed. This is the moment to provide solutions for critical issues, align the system with the latest and most recent standards, and ensure compliance with the current app store regulations.

    This stage also signals the beginning of a collaborative discourse on potential future development paths. It is essential that the system be designed in such a way that it adds value to your company and, ultimately, generates revenue.

    Step 3: Taking initiative

    ui ux analysis

    Our approach extends beyond fixing existing issues; it encompasses proposing ways to enhance the system. This may involve UI/UX analysis, comprehensive market research, and the identification of missing features that can provide tangible value to users and the business.

    If the project necessitates a design overhaul, we always make sure to provide the necessary expertise, from designing mockups to implementing a fresh application design that resonates with contemporary user expectations.

    Step 4: Cooperation

    it cooperation

    Now is the time to assemble a dedicated team capable of handling all aspects of development, from mobile applications to backend systems.

    It is time to deal with any critical errors, patch security gaps, update dependencies, adapt applications to new policies and regulations, refresh the user interface, and add features that are most important from the point of view of both your business and your users.

    This is also the moment to define the scope of work, create timelines, and sketch out goals. It is critical to establish clear objectives during this phase to prevent the project from meandering indefinitely.

    It is important that the transition from the previous phases be seamless, for both the teams involved in the project as well as you and your company.

    Step 5: Long-term cooperation

    long term it technology cooperation

    Once the system has been strengthened, updated, and outfitted with critical features, it is essential to consider its long-term evolution. 

    No single product is ever completely developed. That is why we always emphasize the importance of having a thorough discussion about approaches, solutions, and technologies that will ensure the system’s harmonious development, so that, for example, finding developers for a given technology will not be difficult in the future, avoiding vendor lock.

    This can take the form of adding new features, deploying security patches, or investigating emerging and cutting-edge technologies in order to provide a modern, forward-thinking solution that aligns with your long-term vision.

    Conclusion

    Legacy systems don’t have to weigh your business down. With the right approach and a clear roadmap, you can transform a neglected system into a valuable asset driving growth and innovation. This is your opportunity to create a more agile, competitive, and future-ready organization.

    This is exactly what we did for PKO Bank Polski, one of Poland’s leading banks, which faced a major challenge as its core systems struggled to keep up with rising consumer demand.

    In the case study on Alnora Archive, you can learn how, our client, a leading bank in the Eastern Europe with over 5M mobile app loggings quarterly, seamlessly migrated to a new solution that fulfilled their goals.

    If your company grapples with legacy systems, remember, you don’t have to face this challenge alone. We are here to offer our expertise and support. 

    At Neontri, we reject the idea of one-size-fits-all solutions. Instead, we approach each project as a unique puzzle, carefully considering whether maintaining the current solution aligns with long-term goals. 

    Our ultimate goal is to chart the best path forward for you, whether it entails breathing new life into an existing system or crafting an entirely fresh solution from the ground up.

    Together, we can navigate the digital transformation maze and propel your organization toward a brighter, tech-driven future.