The Dangers of A Legacy Mindset
March 20, 2017

Executing Digital Transformation Study: The Dangers of a Legacy Mindset

Every organization wants to leave its legacy, but that shouldn’t be confused with a reliance on legacy technologies, operations or mindsets.

This may seem like an obvious distinction, but, according to our recent study, Executing Digital Transformation, building an organization that’s scalable and embraces the framework for digital transformation is a struggle for many companies, no matter the industry.

A closer look at our study reveals that a legacy approach does not impact just a single area of business, but rather pervades organizations from top to bottom. Common areas of concern include:

Legacy mindsets:

While many organizations say they understand the value of digital transformation and encourage a culture that prioritizes related endeavors, stakeholders do not support this goal with action. A hallmark of a digital mindset is that it brings once disparate arms of an organization together and align them around shared goals. However, 76 percent of companies report competing with other departments in their organization for resources and/or budget. Likewise, only 15 percent feel that all lines of businesses across their organizations are aligned and working together toward common goals.

The real problem? Misaligned departments and a lack of collaboration and trust make it extremely difficult to execute a digital transformation. Stakeholders must not only encourage teamwork but celebrate participation and facilitate future opportunities for it. If all employees are not on board with updated practices, organizations cannot expect to successfully improve their user experience or the work of their team members.

Legacy processes:

Change may be scary, but a ‘the way we’ve always done things’ mentality inhibits an organization from fully utilizing its systems and people. Legacy processes make it challenging to evolve at pace with consumers’ ever-changing demands and desires.

For 42 percent of organizations the average duration of a technical initiative from business request to deployment is 6-12 months, and for 36 percent it can take more than a year. Similarly, two in four organizations (41 percent) say it takes hours to deploy a change from “production ready” to “in production.”

The real problem? Many companies still operate on old school processes, which prohibit them from operating efficiently and from deploying technology changes that address architecture, speed and adaptability deficiencies. These organizations must ensure any existing processes are cohesive and effective if they want to improve internal operations, while also better meeting their customers’ needs.

Legacy technologies:

Scalable, reliable and agile technologies are the bedrock of any successful digital organization. Embracing new solutions is necessary to deliver personalized experiences for all audiences across all digital touchpoints. Our report finds that organizations need to start investing in improved solutions now. Eighty-four percent of organizations still operate on legacy systems, 22 percent rely on five or more technologies to gain a holistic view of their organization’s users, and a quarter (25 percent) have difficulty integrating with third parties. The majority (81 percent) of respondents are demanding stronger digital solutions and for good reasons. However, they have yet to make the necessary investments.

The real problem? Slow, unreliable and disparate systems cannot help organizations improve their end-user experience with the adeptness demanded by today’s digital environment. With so many user touchpoints in play, organizations need efficient technologies that offer a cohesive experience and a holistic view of consumers to better meet and exceed their needs.

The limitations of traditional approaches to running a business are well documented and have been for quite some time. Legacy technologies lack the flexibility and power to meet the needs of today’s omnichannel consumers, legacy processes prioritize traditions over smarter, more efficient methods and legacy mindsets keep progressive strategies and solutions from having a seat at the table.

Companies must eliminate each component of a legacy structure if they want to succeed in their digital transformation efforts. For example, digital-ready solutions will struggle if business processes still lend themselves to legacy processes. Additionally, if a company culture remains hierarchical, it will be difficult to onboard employees with the expectation that they will work collaboratively across departments.

Digital transformation is a complete process, and, at PointSource, we want to ensure all aspects of your business are digital-ready. Because we know that helping your organization build a legacy it can be proud of starts with removing legacy from your vocabulary.

Download the full Executing Digital Transformation study to learn more about replacing legacy operations and technologies with digital-ready solutions!


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