The nature of legacy systems makes it extremely difficult to implement new business logic through direct modification. As a result, such changes often carry significant business risks.
Challenges
- Long time to market
- Risk of disrupting ongoing business processes
- High cost
- Acceptance of inefficient, compromise-based solutions
- High risk of project failure
Business Risks
Blocked Business Initiatives
When new business needs exceed the available functionality (e.g., bundled sales, complex promotions, or non-standard contracts), companies may abandon initiatives for fear that system modification costs will outweigh potential benefits. Such limitations can pose serious long-term business risks — such as loss of competitiveness or reduced profitability.
Regulatory Compliance
Adapting to new legal or regulatory requirements is another critical demand that may be difficult — or even impossible — to fulfill within a legacy system, especially within the required time and budget constraints.
Shadow IT
When legacy system limitations hinder business growth, departments may bypass the IT team and seek their own solutions. This leads to the creation of local applications using unvetted technologies and tools that typically fail to meet standards for quality, performance, and security. Worse yet, these systems often operate outside formal procedures — including those required for personal data protection.