How can you mitigate the risks of legacy technology systems?
Legacy technology systems are outdated, inefficient, and vulnerable to cyberattacks. They can also hinder your business performance, innovation, and customer satisfaction. As a consultant, you may encounter clients who rely on legacy systems for various reasons, such as budget constraints, compatibility issues, or lack of expertise. How can you help them mitigate the risks of legacy systems and transition to more modern solutions? Here are some tips to guide you.
The first step is to understand the current state of your client's legacy systems, including their functionality, reliability, security, and maintenance costs. You can use tools such as SWOT analysis, gap analysis, or risk assessment to identify the strengths, weaknesses, opportunities, and threats of the legacy systems. You can also interview the key stakeholders, such as the users, managers, and vendors, to gain insights into their needs, expectations, and challenges. This will help you establish a baseline and prioritize the areas that need improvement.
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Stephen Channell
C#/F#/C++ Architect/Developer
Understand the landscape. Many (agile) initiatives are a legacy once accepted, while ancient systems maintained by the originators are not. Replacing a legacy system while maintaining an outdated process is a subscription not an investment
The next step is to define the desired state of your client's technology systems, based on their business goals, vision, and strategy. You can use frameworks such as SMART goals, value proposition, or business model canvas to articulate the benefits, features, and requirements of the new systems. You can also benchmark the best practices and trends in your client's industry and compare them with their current situation. This will help you create a compelling case for change and align the stakeholders with a common vision.
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David O.
Owner Operator @ David O'Marra Consulting | Capital Markets Expertise
Competitive analysis is key to prioritize and obtain the necessary budget for work to be done. Also understanding what your clients are needing the most is critical.
The third step is to plan the transition from the legacy systems to the new systems, taking into account the time, budget, and resources available. You can use methods such as project management, change management, or agile development to design, execute, and monitor the transition process. You can also involve the stakeholders in the planning and decision-making stages, to ensure their buy-in, feedback, and support. This will help you minimize the disruption and resistance to change and maximize the value and quality of the new systems.
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Bernd Menzl
Managing Principal @ Capco - The Capital Markets Company
Rollout management should not be missing from the list of focus topics, as too little emphasis is often placed on it. A consistent runbook script, a well-rehearsed control center and a fast and empowered issue management are key to a successful rollout.
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David O.
Owner Operator @ David O'Marra Consulting | Capital Markets Expertise
Most projects do not allow enough time for the planning Phase. Once you have a business case approved and a detailed project charter then begin the detailed planning phase that uncovers everything that needs to be by whom and when.
The fourth step is to manage the risks associated with the legacy systems and the transition process, such as data loss, system failure, security breach, or user dissatisfaction. You can use techniques such as risk matrix, contingency plan, or backup strategy to identify, evaluate, and mitigate the potential risks. You can also communicate the risks and their impact to the stakeholders, and solicit their input and collaboration to address them. This will help you prevent or reduce the negative consequences and ensure the smooth and successful transition.
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David O.
Owner Operator @ David O'Marra Consulting | Capital Markets Expertise
Every system/sub system and functional task driving the work needs to be tracked for Risk so it needs ownership. RACI is critical
The fifth step is to train the users on how to use the new systems effectively and efficiently. You can use tools such as manuals, videos, or webinars to provide the users with the necessary information and instructions. You can also offer coaching, mentoring, or support services to help the users overcome any difficulties or doubts. This will help you increase the user adoption and satisfaction and optimize the performance and productivity of the new systems.
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David O.
Owner Operator @ David O'Marra Consulting | Capital Markets Expertise
Involvement equals commitment. Engage the users in workshops, seminars and provide good training materials and use the train the trainer approach whenever possible.
The final step is to evaluate the results of the transition and measure the impact and value of the new systems. You can use metrics such as return on investment, customer satisfaction, or innovation rate to quantify and qualify the outcomes and benefits of the new systems. You can also solicit feedback from the stakeholders, such as surveys, interviews, or testimonials, to gauge their perception and satisfaction with the new systems. This will help you demonstrate the value and success of your consulting service and identify the areas for improvement and further development.
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Robert Mehler
Head - North American Sales
Completely agree and we at Torstone are working hard to help broker dealers modernize with a cloud based, realtime, cross asset platform that will help future proof the ops and tech stack.
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David O.
Owner Operator @ David O'Marra Consulting | Capital Markets Expertise
lessons learned and user involvement to obtain the business benefits from the new system enhancements. This information can be turned into a cost benefit analysis and use for future projects.
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Rajesh P.
Product Evangelist | ex Morgan Stanley, ex Accenture, ex Societe Generale, ex Capco
I guess we need to embrace the pain Legacy gives. Let me explain, legacy often is considered dirty by everyone considering overheads and re-engineering that it involves; "not so much", rather it is dirty because of the mindset that we all want to move on to shiny stuff or futuristic tech stack ( everyone). Period Better approach would be to allow the folks who look at Legacy with disgust to build a parallel system with similar or better capabilities that is agile, scalable and mostly parameterized would do the job akin to the live Legacy system. Let Legacy be benchmark to that the new system/POC is meant to be. As popular saying goes "Legacy must live on" the Legacy should be the retrospective of what folks don't want to do
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