In the context of today’s modern business world, technology is not just a tool for operational support but has become a pivotal, central factor in all business activities. Technology, with its rapid pace of development, is constantly being updated and changed, forcing organizations to continuously reconsider and contemplate upgrading or transitioning the technology systems they are using to avoid falling behind competitors. This raises a significant question: How do you know the exact timing needed and make decisions to change the technology platform?
Table of Contents
Metrics for Evaluating the Migration of Technology Platforms
1. Business-Related Data
1.1 Operational Costs
Regarding operational costs, there are a variety of factors that we need to examine carefully and in detail. First are the costs related to maintaining the current technology platform, including costs for software licenses, necessary costs for infrastructure upgrades, payments to service vendors, and system expansion costs.,etc
We need to pay special attention to whether the costs of maintaining software licenses and infrastructure upgrade activities are suddenly increasing compared to previous years. If these costs are escalating without a corresponding improvement in performance or efficiency, it might be a clear sign that the current platform no longer meets business needs.
Additionally, we also need to consider the costs associated with service providers and system expansion. If operating costs become increasingly burdensome, placing significant pressure on the business budget, it may be a sign that more cost-effective solutions need to be sought.
According to a survey conducted by Deloitte, on average, IT departments spend over 55% of the technology budget on maintaining business operations, while only 19% is allocated for developing innovative solutions. If these costs continue to increase over the years and constitute a significant portion of the total operating costs, it could be a clear signal that it’s time to consider and implement changes.
1.2 Performance and Operational Goals
Evaluating the effectiveness of the current technology platform is an important step in managing and developing a business’s digital strategy. Performance-related metrics, such as processing time, latency, and error rates, provide an objective view of the current system’s operational capabilities and help determine whether a technology platform migration is needed. When these indicators do not meet convincing levels or fail to achieve operational optimization goals, it’s a sign that the business may need to consider upgrading its technology to enhance efficiency.
Thanks to upgrading old technology platforms, businesses can significantly improve productivity, thereby enhancing the user experience. Technological improvements also help reduce processing time and latency, as well as decrease the error rate in operational processes, thereby contributing to ensuring competitiveness and long-term development of the business.
1.3 Scalability and Integration
Outdated technology systems not only hinder daily business operations but also limit scalability and integration with new technology platforms. The ability to scale and integrate with other systems is a crucial criterion for maintaining competitiveness and innovation in an increasingly complex and connected business world.
59% of IT leaders recognize that the difficulty in scaling up is often due to maintaining old systems, hindering operational efficiency and causing businesses to miss out on growth opportunities, losing competitive advantage against rivals employing more modern technologies. A significant challenge of old systems is poor integration capability. If the current platform is difficult to expand or integrate, this will limit the ability to collaborate and work effectively with partners, affecting the deployment of innovative solutions and digital transformation.
To overcome these challenges, upgrading and updating technology is not only a necessary step but also a strategic requirement to ensure that businesses can grow strongly and sustainably in the future. Businesses need to prioritize investing in technology as part of an overall strategy to enhance competitive capabilities and better meet the needs of the modern market.
2. Technical Data
2.1 Operational and Maintenance Obstacles
Maintaining old technology systems can create numerous limitations in operations and maintenance, thereby accumulating technical debt for businesses. This results in significant constraints on business operations, from slowing down development to significantly increasing costs.
Operational and maintenance challenges associated with old systems not only disrupt production processes but also result in high maintenance costs, often double those of maintaining modern systems. Furthermore, system failures causing downtime can lead to substantial financial losses. According to a survey by Statista, 25% of organizations report that the average cost per hour of downtime falls between $301,000 and $400,000. These costs not only impact finances but also negatively affect the reputation and customer satisfaction levels.
Therefore, if maintaining old systems is causing operational and maintenance obstacles, transitioning to newer technology platforms might be an effective solution. This not only helps reduce the risks and costs associated with downtime but also creates a more flexible and efficient operating environment, reduces technical debt, and accelerates the development pace of the business.
2.2 Limitations in Features and Functionality
Finally, evaluating and comparing the features and functionalities between the current technology platform and those of newly developed platforms is an important step in determining the necessity of updating the technology system. When the current platform no longer meets the continuous development needs of the market or lacks the ability to integrate with advanced technologies, it signals the need for business to consider a migration.
New technology platforms increase efficiency, scalability, and open up opportunities for innovation, enhancing user experience, and accessing new markets. Technological innovation is a strategic move that helps businesses grasp trends, compete, and adapt in a volatile business environment, ensuring sustainable development.
Wrap up
Today’s businesses face rapid technological changes and continuous shifts in customer behavior. This requires a technology system that is not only modern but also flexible enough to adapt to constant changes and support new business strategies. Regularly reviewing and assessing the effectiveness of the current technology platform not only helps identify weaknesses but also provides an opportunity to explore new technologies that could offer a competitive advantage to the business.
Deciding whether to migrate technology platforms is a complex process that requires careful consideration based not only on economic factors but also on the ability to meet technical requirements and support future growth. In a volatile and competitive business world, businesses need to be prepared to assess and update their technology systems to not only maintain but also improve their market position. This process also ensures that businesses can timely make the necessary decisions to upgrade or replace systems, thus continuing to grow sustainably in a fierce competitive environment. Investing in new technology is not just an expense but a strategic investment, enhancing revenue growth, optimizing workflows, and improving customer satisfaction.
References
5 Risks Of Outdated Software & Operating Systems
When does your Business Need a Platform Migration?
