But how do you know when it’s time to say goodbye to the familiar and embrace the transformative power of modernization? This blog post serves as your guide, exploring the key triggers that signal your manufacturing applications might need a makeover:
The Growing Technology Gap
Integrating newer technologies like AI, ML, IoT sensors, and advanced analytics with legacy systems has become exceptionally difficult, requiring extensive customized coding and integration costs. On average, your legacy systems take 2-3 times more effort to maintain and cost over five times more per transaction than modern cloud-based applications.
Agility and Innovation Demands
Legacy applications severely constrain business agility and time to market with inefficient release cycles and the inability to scale rapidly. Monolithic applications make even minor tweaks slow and painful, while homegrown tools built for niche use cases create fragmentation. As a result, technical debt accumulates, manual workarounds become commonplace, and siloed systems start to obstruct visibility.
Performance and Scalability Issues
Modern industrial operations require applications that provides real-time insights, processes vast amounts of data, and executes complex tasks efficiently and accurately. Legacy systems simply lack the scalability and elasticity to meet such spikes in demand, eventually forcing you to over-provision infrastructure.
Rising Costs and Tech Debt
Maintaining multiple legacy applications entails high operational and maintenance costs, redundant functionalities, and inefficient processes and demands for specialized skills and hardware. Consequently, technical debt accumulates, making it increasingly difficult to innovate at the pace required today. Let’s not forget the tremendous number of servers and systems required to support this portfolio.
Enhanced Security Requirements
With cybersecurity threats constantly evolving, legacy platforms pose enormous security risks, as over 70% of breaches are tied to vulnerabilities in outdated systems. Built on antiquated architectures and lacking modern security features, they are particularly susceptible to shadow IT, cyber-attacks, and data breaches.
Regulatory Compliance Mandates
Evolving regulations often necessitate revamping aging applications that fail compliance requirements. Non-compliance with regulations like GDPR due to legacy apps can lead to heavy penalties for industrial companies. For instance, your legacy ERP systems likely lack the necessary security safeguards for sensitive financial data, like customer payment information, that are now mandated by regulatory standards. These systems simply weren’t designed for today’s security needs.
Business Continuity and Disaster Recovery
Unexpected events such as natural disasters, geopolitical tensions, and public health crises underscore the critical importance of business continuity plans. With their monolithic architectures and single points of failure, legacy applications can pose significant risks to continuity and resilience. Additionally, their inflexibility, coupled with poor failure provisions, may further amplify disruptions.
Data-Driven Decision Making
Industry leaders like Siemens emphasize data-driven manufacturing as the next frontier for exponential value creation. However, decades-old industrial legacy systems frequently lack the capabilities to fully leverage data and analytics, potentially impeding your organization’s capacity to derive actionable insights and make informed decisions.
Scalability and Flexibility Requirements
As you expand your industrial operations and enter new markets to serve increasingly diverse customer needs, scalability and flexibility become crucial. Legacy monoliths may limit your ability to scale on demand, adjust to dynamic needs, and enable organizational agility. Moreover, point solutions grown organically over generations could further constrain flexibility.
Customer Experience Expectations
Today’s consumers expect seamless omnichannel experiences with real-time responsiveness. Yet, legacy applications, burdened by fragmented data and inflexible interfaces, face considerable hurdles in meeting these expectations. The integration of modern customer experience features exacerbates this challenge even more.
Competitive Pressure
Legacy systems and outdated applications can hinder your organization’s agility, affecting innovation, time-to-market, and responsiveness to market trends. As competitors adopt advanced technologies and processes, you may find your existing systems struggling to support new products, meet customer needs, or data-driven insights, potentially leaving you behind in the game.