July 29, 2011, 10:09 AM — Legacy applications are one of the most difficult issues to face within IT. A rip-and-replace approach is expensive, difficult to cost-justify and tends to interrupt business. Meanwhile, the legacy software lingers in accounting's ledgers, outlives its welcome in sales and causes poor network performance throughout the organization.
And it gets worse. An old mapping application in a transportation department, for instance, is a disaster waiting to happen. As the months and years go by, the problem becomes more serious and harder to address.
In the examples below -- each featuring a slightly different legacy application problem -- the key to finding a solution involved business analysis. IT staffers helped figure out how the legacy app was being used, in what ways employees depended on it and how the company would be affected by a disruption in service caused by a failure of the software. Application failures, of course, typically lead to a loss of productivity that continues during the time needed to install new software and train employees to use it.
"A core element in all these cases is that the existing portfolio [of IT applications] ought to be continuously managed for its balance of delivered value to cost and risk," says Jim Duggan, a Gartner analyst who studies enterprise IT applications.
Of course, how these companies balanced the value of software against its cost and the risk of failure, and the factors that pushed them to finally make an upgrade, varied depending on the specific business need and the exact nature of the legacy app problem.
Hudson's Bay Company and Lord & Taylor
Problem: A merger renders existing ERP systems obsolete
Solution: Wholesale ERP replacement to meet the needs of all divisions
Hudson's Bay Company is one of the oldest retail chains in Canada, having been established in 1670. The company also owns other popular chains, including Home Outfitters and Zellers. In 2008, Hudson's Bay was purchased by NRDC Equity Partners, the same company that owns Lord & Taylor, an upscale department store chain.