Calculating the true cost of legacy IT systemsUpgrading or replacing legacy IT systems can be expensive. But do the benefits of transformation outweigh the costs maintaining them?

Updating legacy IT systems can be expensive

So can choosing not to

The cost of maintaining legacy IT can mount quickly

Legacy IT Has a Cost

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What is the Impact of Doing Nothing?If you maintain rather than transform or replace your legacy IT systems, you’re at risk of:

Operational inefficiencies

Demotivated employees

Dissatisfied customers

Holding back innovation

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48% of employees are wasting at least 3 hours a dayby working with inefficient systems

For an organisation with 5,000 employees that equates to 960 man days per year

How much could this be costing your organisation?

The Cost of Inefficiency

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Legacy systems often mean inefficient or siloed workflows

This can cause inefficiencies and increase demands on your staff

Do Your Legacy Systems Allow for Optimal Workflows?

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The Cost to MoraleMore than half of workers are dissatisfied with workplace technology

Outdated and unwieldy IT systems don’t inspire them making it more difficult to attract and retain talent

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If morale drops, employee turnover increases

Replacing a staff member takes time and costs over £30,000 on average

This cost needs to be factored into your analysis

Can You Afford to Replace Dissatisfied Employees?

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Modern consumers are tech-savvy consumers

66% of the UK population own smartphones and are used to sleek and intuitive interfaces that provide easy access to the people, information and services they want

The Cost to Your Image

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Older, outdated client-facing interfaces are worlds away fromthe apps today’s citizens are currently using

Legacy interfaces will be off-putting and diminish your credibility

Does Your Legacy System Have a Legacy Interface?

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Organisations have never had more access to data and information

Being able to translate this into actionable insight is crucialto your future success

The Cost of Uninformed Decisions

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Newer, cloud-based infrastructure can enable unprecedented volumes of information to be processed quickly and efficiently

The ability to analyse ‘big data’ can transform decision-making, improve organisational agility, inform service innovation and improve customer service

Can your siloed legacy systems provide the same?

Can Your Legacy System Provide Visibility?

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Over half of IT budgets are spent on maintenance

With only 33% of IT expenditure allocated to enabling new capabilities

IT leaders need to balance the resources spent on supporting existing IT operations with projects that deliver genuine innovation

The Cost of Maintenance

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Keeping your legacy IT system could cost your organisation:

3 hours of wasted time per day for nearly half your employees due to inefficiencies

50%+ of IT budgets are spent on maintenance rather than new projects or innovation, impacting employee and citizen satisfaction

The True Cost of Legacy IT

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IT budgets are stretched

But does it make more sense to fund inefficient, outdated systems?

Or could spending more of your budget on transforming your IT estate and adopting an agile approach to innovation save money in the long run?

Legacy Systems – Your Choices

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Takeaways:

On average more than half of IT budgets are

spent maintaining existing IT systems.

Inefficient IT systems result in at least of 3 hours of

wasted time per day for nearly half

your employees.

Inefficient systems and a poor user experience

impact staff morale and citizen satisfaction.

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More than half of IT budgets are swallowed up maintaining existing IT systems. Find out how you can reduce this figure by downloading our guide:

Addressing the challenges of legacy systems: A guide for IT leaders

Download your FREE eGuide now!

Sources: http://www.information-age.com/it-management/strategy-and-innovation/123459720/it-sits-heart-inefficiencies-cost-each-uk-business-average-salaryhttp://www.cio.co.uk/blogs/forrester-cio-blog/employee-satisfaction-technology-expectation-gap/http://www.hrreview.co.uk/hr-news/recruitment/it-costs-over-30k-to-replace-a-staff-member/50677http://media.ofcom.org.uk/news/2015/cmr-uk-2015/http://www.computerweekly.com/news/2240237777/Forrester-IT-maintenance-saps-budget-as-tech-spending-increases

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