A Data-Driven World

At a glance:

• The main takeaway: Many companies run dual environments with legacy systems and incompatible modern platforms. The risks and inefficiencies associated with running dual environments may outweigh the costs associated with updating your IT environment.

• The impact on your business: Not only are legacy systems associated with costly maintenance and the need for additional personnel, they constrain your business’ ability to fully leverage your data – preventing you from generating insights using modern tools.

• Next steps: Consult your IT team, get their opinion on how to proceed and reach out to Aprio for help devising and implementing a cost-effective plan to overhaul your IT environment.

Schedule a consultation with Aprio’s specialists today for help planning, procuring and implementing a plan to modernize your systems.

The full story:  

The world is now data driven, yet many companies struggle to provide their leaders with the information they need to daily to ensure their business is on track. This challenge has now been escalated due to the post-pandemic digital explosion as companies struggle to merge their legacy environments with their more modern ones. Before we address possible ways to solve the problem, let’s look at how we got here.

Digital wasn’t new in 2022, but adoption was moving at a relatively modest pace versus what happened post pandemic. Companies were forced to purchase cloud or SaaS solutions to empower their workforce, engage and service their customers as well as create new sales channels and tools to allow their businesses to grow and sustain.

While this mass purchasing was happening, most businesses still had their legacy IT stack to support and maintain especially in the world of SMB’s and the mid-market. Fast-forward to 2024 and the reality is most of these companies are still running dual environments which are built to operate completely differently and require two different skillsets to support, maintain and grow.

So, what does an owner, IT leader or CFO to do about this new world? How does a company tackle the challenge of dual environment and tech stacks to get their leaders the data they need every day to make decisions? There are many options to explore, such as:

1. Rip and replace – While it will be expensive and time-consuming, companies can choose to move their legacy on premise/private cloud world to a purely digital one. This isn’t my first choice as it is hard to justify the business case – or in better words the ROI is a long-term payback but once you bite the bullet your world and your data will be much easier to manage.
2. Build a data warehouse – If your company doesn’t already have a data warehouse, it’s time for you to bite the bullet and invest. Given the amount of SaaS applications your business will use, and the presence of a legacy tech stack, the best option for your company is to merge their data together in one central location: the data warehouse. Once all your data is in the same place it will enable you to leverage tools such as PowerBi and Tableau to deliver powerful visualizations of your KPI’s and put the data in your decision makers hands.
3. Modernize your integration platform and approach – The world of integration and data movement has changed as well, and if you are relying on aging legacy platforms and private cloud environments it is time to evaluate new options. There are many reasons for this, but the primary ones are that older systems weren’t built to operate in a SaaS world, and their cost of maintenance and support is through the roof. You can’t afford to be held hostage by these legacy tools as empowering your modern workforce to manage their own worlds is a possibility once you upgrade your integration platform and approach.
4. Do nothing – It is an always an option to do nothing and simply stand still, but I believe that is foolish and shortsighted. The digital world is going to continue to evolve and if you want your business to survive and flourish this option should be a nonstarter.

As a former CEO and business owner, I understand the challenge of capital management that a small business owner or mid-market company face, as being privately held means dollars are valued greater than they are in the public company marketplace. My recommendation is to invest in items 2 and 3 before looking to rip and replace or stand still. I would also suggest treating it biting off items in small chunks vs boiling the ocean by starting with a division or line of business versus trying to tackle this all at once. The beauty of this agile approach is you will learn as you go and be able to modify your strategy to accommodate the specific needs of each of your business leaders as –  let’s face it – what IT deems important is going to vary greatly from your marketing team’s needs, your finance team’s needs and so on.

Schedule a consultation with Aprio’s Advisory General team today for help devising and implementing a cost-effective plan to modernize your firm’s IT systems.

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