Legacy System Replacement Planning Tool
Article Contents
Legacy systems are defined as the inherited components, tools, strategies, and assets from previous time periods. This issue is not necessarily the passage of time but the changes that occur as time passes. These legacy systems often represent outdated perspectives and time samples of now outdated best practices, market analysis, and industry competition profiles. The result is an outdated legacy business model.
When business models are not updated regularly the results can include loss of market positioning, customers, and competitive advantage.
Examples of legacy models:
- Timesheets: Paper to electronic versions.
- Supervision: Ad Hoc to documented & tracked KPI’s (with technology advancements)
- Strategic Planning: Corporate Top-Down vs. Operations Bottom-Up
- Business Models: Brick n Mortar Stores vs. The Electronic Superhighway (internet, digital models, etc)
- ‘Culture fit’ will eventually become a legacy ‘model’ over time; as it often focuses on homeostasis (and using existing broken tools & processes) instead of innovation and change.
Considering estimates that 90% of current and past business models never worked as intended the failure to update regularly can be catastrophic.
The Business Model Functional Analysis
The gap from a high functioning business model to that of a legacy system often starts at origination. The information needed to support optimal performance was either not collected or the insights were inadequately connected to the tools, assets, and strategies needed.
The saying “work harder not smarter” captures the response to the results as colleagues often have to work extra hours and carry additional responsibilities in an effort to ‘keep up.’ Quality and efficiencies suffer despite best intentions.
The differential diagnosis for identifying and evaluating legacy business models becomes increasingly complicated as one considers the chicken and the egg problem: Which came first?
Evaluating Business Model Performance
Interventions require an accurate picture of the business model environment:
- Connections & Inter-dependencies
- Constraints & Limitations
- Barriers & Opportunities
- Drivers & Push/ Pull Mechanisms
The most common markers to identify if a business model meets legacy definitions includes the following measures: Satisfaction, Cost, Efficiency, Waste, Growth, and Learning.
The following spreadsheet can be used to evaluate each of the business model components. Use this spreadsheet to evaluate bottlenecks, evaluate areas of misalignment, and identify opportunities for improvements.
Strengthening Business Model Performance
The business consulting industry was born in response to the needs of legacy business models. Unfortunately the same environment that created the business model continues to influence interventions.
There is no guarantee that the plethora of business consulting tools available will be provide the ‘silver bullet’ your business needs. A system’s thinking approach to business model realignment is needed.
Business Model intent determines if the resulting structure and supporting components will create a competitive advantage. Intent needs to be confirmed before the data, goals, and structure can be established.
Failure to answer the question of intent can directly undermine the subsequent components, processes, and tools recruited to develop the business model.
Solution Selection & Implementation Roadmap
A Tailored Approach
There is no ‘one size fits all’ business model and thus no silver bullet that can realign outdated legacy systems. But there are tools available. Beginning with clarification of the business model intent the team is pointed in the direction needed to better understand their customers, industry, and key performance drivers.
“Realignment may not be possible in all cases. On occasion, the business model may need to be scrapped and replaced with a completely different vision. In others, you may discover that the business model no longer serves a viable purpose or that the resources and tools are no longer available to deliver a competitive solution.”
Business Consultant
NPO’s often have to balance on investing into scalable tech solutions or continuing with manual processes that consume human resources and diminish service efficiencies.
NPO system design often create their own constraints and are difficult to change. Being very clear upfront on priority pain points and requirements not currently being met is an important step. Separating the ‘must’ from the ‘wants’.
Developing a holistic approach to update legacy systems often requires board and executive buy-in. Some larger projects require additional fundraising and capital planning. A ‘project integration management’ approach can help design a stakeholder & technology development/engagement roadmap so minimal rework is needed.
Legacy System Replacement Planning Tool
The following planning tool can be used by your team to begin drafting the legacy system replacement process. Feel free to add whatever notes and information you have available, then export as a document that can be updated and edited later.
How is your team evaluating the business model’s performance? How would your team ‘know’ if the business model needs to be updated or replaced?
Check out the interactive article, Knowledge Management in Sharepoint!
Travis Barker, MPA GCPM
Innovate Vancouver
Consulting@innovatevancouver.org
Innovate Vancouver is a Technology and Business Innovation Consulting Service and located in Vancouver, BC. Contact Innovate Vancouver to help with your new project. Innovate Vancouver also gives back to the community through business consulting services. Contact us for more details.