6 Key Strategies for Legacy Systems Modernization | Comidor BPM

6 Key Strategies for Legacy Systems Modernization

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A logistics company that uses an ERP application mainframe across the business with complementary task management cloud-based software and a third communication platform, faces a multiple data silo problem along with none of the application supporting all components of the business model.

In this case, the company depends on its ERP-legacy system for most of its core business functions, but its scalability comes at a high cost and lengthy developing periods, holding back the business and its strategy to grow.

According to a survey (Figure.1) conducted by Deloitte last year on digital transformational challenges, legacy systems are high on the business challenges list.

From the above, we can safely assume that companies beyond the logistic industry face the legacy systems challenges.

The management of the above logistics company has the option of rehosting their ERP, rebuilding or refactoring it, rearchitecting it, before finally replacing it.

But which legacy modernization option is the best? It depends on the business challenge each company is trying to solve.

1. API your ERP

Allow the legacy system’s functions and data stored or created, through an application programming interface (API), to be accessible as services, in solutions like Comidor Low-Code BPM, that can leverage the application features and value.

  • Pros: Intellectual data and organizational structure of information flow stay in the good old ERP legacy system.
  • Cons: The quality of the knowledge created by the Low-Code BPM solution depends on the data range and the form inputted in the legacy system.

2. Rehost

Keep the same functionalities and features and substitute the infrastructure which supports the legacy system, specifically going from an on-premises expensive and resource-limited installation to a cloud Infrastructure-as-a-Service (IaaS) solution.

  • Pros: Easier than the first choice, non-recurring maintenance cost and instant scalability.
  • Cons:
    • In reality, no digital transformation takes place as the company must still navigate its business ambitions and strategy inside the legacy system’s hard-code limited functionalities.
    • No Low-Code BPM empowerment

3. Re-platform

Make minimal changes to the legacy system code or design by re-platforming a component of the legacy system to a new open source BPM platform.

  • Pros: Leverage the core business function that is most important for the business model with low cost and timely implementation.
  • Cons: The business can not react to changes in its market or new challenges beyond the re-platformed component function area.

4. Rearchitect

The first actual step into digital transformation and legacy modernization. Make changes to the legacy system code according to the microservices model that can be built, deployed and managed independently. Technologies in this area include PaaS (Platform as a Service) such as JPlaton.

  • Pros:
    • Exploit new and better capabilities of the legacy platform.
    • Business agility and faster time to market
  • Cons: Expensive consulting and slow reacting developing process from the legacy system megacorp solution provider.

5. Rebuild

This strategic decision involves a full digital transformation approach. Start from scratch by rewriting the legacy system components and rebuilding its new functionalities. In other words, the business is going for a custom solution that will address its unique business challenges.

  • Pros:
    • It can be built as a cloud-native application from the start.
    • Leverages new coding techniques with faster developing times, better security and custom network protocols.
    • Delivers the most value since it is core business functions oriented.
  • Cons: Expensive consulting and slow reacting developing process from the legacy system megacorp solution provider.

6. Replace

(According to the 2018 Gartner survey- 2, with the participation of 71 Chief Strategy Officers: Old ways can’t help you grow)

Replacing the legacy system components with an out of the box business app solution that allows constant rearchitecting options. This is achieved by a Low-Code BPM interface in a Software-as-a-Service (SaaS) solution, like Comidor Low-Code BPM.

  • Pros: All the pros mentioned in the fourth and fifth option, plus the following:
    • Always running the latest version without the need of updates,
    • Cost savings and better security
    • Shifting the support burden outside of the organization.