![]() ![]() Let’s discuss the different approaches on how to modernize legacy systems in detail. There are many different approaches to legacy system modernization. The management of the above logistics company has the option of rehosting their ERP, rebuilding or refactoring it, and rearchitecting it, before finally replacing it.īut which legacy modernization approach is the best? It depends on the business challenge each company is trying to solve. Legacy system modernization approaches are a way to modernize legacy systems and make them more efficient. 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.Īccording to a survey ( Figure.1) conducted by Deloitte on digital transformational challenges, legacy systems are high on the business challenges list.įrom the above, we can safely assume that companies beyond the logistic industry face legacy systems challenges and start considering following legacy system modernization strategies. These systems were built decades ago and have evolved over time, but they are now facing new challenges, as shown in the example below.Ī 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 applications supporting all components of the business model. Legacy systems are the backbone of most of the world’s businesses.
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