For many companies, Christmas and New Year are critically important times of the year, when much of a company's earnings are brought home, which will help finance many activities for large parts of next year. Many companies therefore cannot afford to bother with IT systems that do not work and operational problems that mean lost revenue. Many companies will probably be able to nod in recognition that IT is just something that "exists" somewhere and must do nothing but work. Unfortunately, however, IT is usually only noticed when there is something that doesn't work, which results in halted work throughout the company!
The reason why IT is usually only noticed when something is wrong is because the IT department affects all other departments in a company. This means that, if there is something wrong with the IT department, it will be felt throughout the entire company.
On a daily basis this can boil down to mild irritation, but when the Christmas sales are in full swing and you have already started packing orders for Christmas and New Year, there is simply NOTHING that must go wrong on the technical side. However, time and again you see companies' IT systems breaking down due to the increased pressure on their webshop or that there are far too many things going on in the POS system so that it starts to slow down or even "freezes".
It can therefore be established without a doubt that the Christmas month and the holidays in general are critically important for many companies and a decrease in IT operations will have major consequences.
But can something be done about this? Is there even a solution?
Fortunately, yes! The reason why many IT systems break down during critical times of the year is most often because they are not optimized to handle the extra pressure that comes with these peak seasons. Added to this is the fact that many companies still use IT systems that are no longer updated or supported by the provider, which not only poses a stability risk, but also a huge security risk as such systems are much easier to hack and extort sensitive company information.
Replacing the company's IT system can seem like an expensive affair, especially if you don't have an IT background and can't quite see what advantages you get from a new system. Furthermore, it can be very tempting to postpone the implementation of new IT solutions as it looks good on the bottom line and the "we can always do that later" principle starts to take effect.
"If you just start over, you will repeat the sins of the past." - Adam Peter Nielsen, CTO of Novicell
A investigation by the digital consultancy Novicell, has pointed out that Danish companies spend several billion kroner every year to keep their outdated IT systems afloat. This practice is both a heavy cost for many companies, but also helps to limit companies' growth, development opportunities and can make it more difficult to attract qualified labor to the company.
The problem with postponing the implementation / updating of your company's IT system is that it can have major negative effects on the stability of your existing operational solutions. Furthermore, it means that you will not have access to the latest features and will thus lose a competitive advantage on the market. In addition, it can become more expensive to update/replace one's IT system over time, as the older one's system is, the greater the chance that some elements cannot be reused and must therefore be rebuilt from scratch.
In short, it may seem like a good idea to postpone the upgrade of one's IT system in the short term, but in the long run it means that you will most likely lose your competitive advantage, IT stability will be reduced and over time it will be much more expensive to have to replace your IT system than if you had replaced it in a reasonable time.
As a company, you usually have 2 primary solutions to choose from if you want to do something about your outdated IT situation. You can choose to build a new system from scratch or integrate Legacy systems with new systems and slowly phase out Legacy systems.
Building a new system from scratch is of course the best, as it ensures that your company gets a system that is well thought out from scratch and thus not have to rely on older technology and no reservation should be made for previous procedures. However, this is also the most costly solution and may be too much of a financial expense for some companies.
Some companies may prefer to integrate their current Legacy systems with more modern systems while slowly phasing out Legacy systems until they have achieved a modern platform for their business. This solution is of course a smaller financial burden for the company, however you will not be able to tailor the new system to the company and some modern functionalities may not be available.
Common to both solutions is that action is taken to have the outdated systems replaced, so that they do not function as a bottleneck for the rest of the company and thus affect it negatively.
”Here there can be a risk of being outcompeted, losing potential market shares or losing unrealized potential because you are stuck in legacy IT. Unfortunately, it happens very often," says Adam Peter Nielsen, CTO of Novicell.
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"It can therefore be established without a doubt that the Christmas month and the holidays in general are critically important for many companies and a decrease in IT operations will have major consequences." |
"If you simply start over, you will repeat the sins of the past." - Adam Peter Nielsen, CTO of Novicell. |
”Here there can be a risk of being outcompeted, losing potential market shares or losing unrealized potential because you are stuck in legacy IT. Unfortunately, it happens very often," says Adam Peter Nielsen, CTO of Novicell. |
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