Building a Business Case for Replacing Legacy Systems

Highlight the Negatives of the Current System
Business decisions require numbers. The easiest numbers to collect are the tangible costs associated with the legacy system. These may include: annual hardware support, annual software support, and the administrative man hours spent maintaining the legacy system. Next, estimate the value of the legacy data. Ask your users what they would do if the information were inaccessible or lost. The answers should highlight pinch points you can use to attach rough figures to the risk of inaction.

Accentuate the Positives of the Replacement System
Identify and quantify the benefits of the proposed replacement system. Highlight features that users of the legacy system will value most. Current software and systems are likely faster and provide features not found in your legacy systems. For example, recent database and reporting technologies may provide users the answers they need more quickly and conveniently. Your users may value reduced service interruptions or electronic report delivery. Finally, explain the economies gained by focusing your administrative staff on current applications and systems.

Sell, Sell, Sell
Marry your financial analysis with a summary of the intangible costs you have identified. Fold in real examples that bolster your intangible cost claims. Get in front of decision makers and sell your proposal. Communicate the dire nature of the situation, your financial analysis, and your proposal to mitigate cost and risk. If all else fails, tactfully point out the impossibility of keeping the legacy system running by citing the Three Ways Legacy Applications Will Cost You Big.

How have you successfully justified replacing legacy systems? Post a comment and share.