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Legacy Systems: When Does it Pay to Upgrade?
The answer is probably sooner than you think
BY LARRY TRUE & FRED ODE
Contractors using older versions
of software, referred to
as “legacy systems”, typically
maintain one of two stances on the
subject. The first begins like this: “I
don’t want to change. This works, so if
it isn’t broken, why fix it?” On the flip
side, there are those who take the other
extreme: “We have to get off this old
system and onto a Windows-based
platform.” They say this with great
urgency; however they can’t provide a
sound business case for switching.
Who is right?
To begin, let’s examine what defines
a legacy system. This term refers to a
software package that runs on a backend
system (e.g., UNIX) and has been
written using a third-generation programming
tool such as COBOL. One
noticeable difference is the screen
design. Legacy systems traditionally
have a character-based “green screen”
look rather than a graphical user interface
(GUI), Windows-style screen.
Legacy systems are also typified by
non-database file structures with discreet
files rather than the relational
database structure usually found in true
Windows programs.
Legacy vs. GUI:
What’s the difference?
Legacy systems are not all bad; many
have some distinct advantages. For
instance, long-time data entry clerks
become accustomed to using character
screens and find that they can do
large amounts of heads-down data
entry quickly. They have gone through
the process so many times, they just
know it, automatically. For these people,
help screens, on-line documentation
and graphical user interfaces are
not important issues.
On the other hand, some employees,
such as new or infrequent users,
tend to look at green screens like
something right out of the dark ages.
They appreciate the ease of navigation
offered by the graphical look and enjoy
the ability to use a mouse. Add the
assistance offered by on-line documentation
and you’ve got computer
nirvana. These users want to switch
immediately for the GUI look without
concerning themselves about the underlying
functionality or architecture.
In order to satisfy GUI needs, there
are legacy systems that have added an
overlay (sometimes called a screen
scraper) that basically takes the character-driven green screens and
repaints them to look graphical. These
systems do not leverage the technological
advantage of full client/server
software; they just look prettier.
Furthermore, depending on the
database they use, these overlay systems
may or may not provide real access
to the data that would help eliminate
other legacy system drawbacks
(e.g., not having the ability to easily pull
out data for special reports).
Stay or change?
Someday everybody will move to GUI
systems, relational databases and
some type of client/server architecture
simply because it will be impossible to
buy software that isn’t graphical. Until
then, how do you determine the right
time to make the change? As soon as you can make a business case for it.
More than ever before, today’s companies are
challenged to provide better, more accurate information
quickly. State and federal reporting requirements
are becoming more stringent. Owners require formatted
invoices. Having date-sensitive information pullable
when needed is important. Managers want to analyze
their work in process and provide accurate and timely
reports to banks and bonding companies. It is not
always possible to do this easily with legacy systems.
Many companies find themselves in the position of
having “side systems,” where users manually create
reports to make up for the deficiencies in the old system.
If your firm is in this mode, a shift to a client/server
relational database system would be appropriate.
Relational database systems allow the users to
extract data out into Crystal Reports, Microsoft Access
or even Excel for reporting. This makes the data much
more accessible and saves countless hours of manual
work. The database makes the data accessible and
the tools make it much easier to obtain and manipulate.
Figure out the time your staff spends on manual
work and multiply it by a reasonable billing rate. It will
quickly become apparent that there is big money to be
saved by moving away from a legacy system.
Making the change
I recently overheard an office employee ask, “Why
should we change the way we do things? Bob gets
everything he wants from our system.” In truth, Bob
wasn’t getting everything he wanted at all. Maybe it’s
time to go shopping.
Here are some things to keep in mind. Client/server
software generally requires some investment in new
hardware. Don’t assume that because you currently
have a network in place that it will be able to handle
database and client/server applications. You may
need a dedicated database server, especially if you are
using any databases that could conflict with each
other. You will also need to make sure your network
and switches are running up to 100 megabits per
second. In addition to the network, you will probably
need to upgrade any PCs that are older than a couple
of years. Give consideration to monitor size of these
new machines. Finally, you need to make sure that the
software you select can accommodate the users who
are accustomed to character-based screens.
A last bit of advice: Don’t expect to change software
and continue to work exactly the same way you
did on the old software. You need to learn the new
system and adapt your procedures to take advantage
of its capabilities to the fullest potential.
Checklist for Change
So when is it time to change? When you can
answer “true” to any of the following questions:
■ The old software is no longer supported.
■ The old hardware is no longer supported.
■ The old software can’t meet the reporting needs of the firm.
■ People are spending too many hours per month on manual work
outside of the system.
■ The information needed to manage the business can’t be
obtained from the software.
■ You have found a new system that meets your functional needs
and is based on sound database technology.
■ You are prepared to invest in the infrastructure and training to obtain
the increased productivity and reporting you need from a new system.
Larry True is a systems and business consultant with over
30 years of construction and related experience. He may
be reached at Dorfman-Robbie CPAs, Albany,NY, 518-464-4080 or ltrue@dorfmanrobbie.com.
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