Why Legacy Software is a Business Liability

Suren Avunjian’s latest contribution to the Forbes Business Council provides a cautionary tale for businesses using outdated software systems. 

In his article (linked below), Avunjian (LigoLab’s CEO) says that computer technology has experienced exponential growth in the past 50-to-60 years, roughly doubling in power every two years. Because of this, he argues that it’s easy for business software solutions to go from “advanced” to “outdated” and that businesses that continue to use outdated software won’t be able to reach their goals because of this liability.

The Costs Associated With Not Upgrading To Modern Software Systems 

Forbes Business Council Article Summary

After establishing that outdated software continues to hold businesses back, Avunjian offers tips on preventing this from happening. He gets to the root of the problem, explores why some businesses stick with software systems longer than they should and breaks down the explicit and opportunity costs of failing to keep up with advancing technology.

So why do some businesses choose to stick with legacy software systems?

Avunjian lists the following reasons:

• Fear and risk of disruption: Put succinctly, businesses fear the unknown.
• Familiarity, comfort, and training: Change sometimes inspires employee resistance.
• Customization and migration difficulty: The current system is very customized making a move to another very difficult.
• Cost of investing: Any upgrade to a new software system typically requires a large upfront capital investment.
• Perceived short-term benefits: Familiarity and stability overshadow the unrealized benefits of a new system.
• Compliance: Concerns about regulations and risks. 

Next, Avunjian highlights the costs (explicit and opportunity) associated with delaying modernization.

Explicit costs factor into staff satisfaction.

“The longer a business delays updating its software, the more difficult and costly it can be to find staff members willing to maintain and support it. IT professionals would much rather work on exciting and new modern solutions instead of learning outdated technologies.”

Suren Avunjian, LigoLab CEO

Avunjian also lists higher maintenance costs, integration challenges, integration challenges, vendor vulnerability, a lack of innovation, and a lack of agility and scalability as further explicit costs, along with the business’s brand reputation being negatively affected.  

And how can a business determine if now is the time to switch to a new software solution?

Avunjian suggests the following questions should be asked and answered by the business leadership team. 

• Does the current software still fill all of its business requirements, or are there gaps in functionality that slow productivity and growth?
• Can the software continue to support the growing needs of the business? Can it handle an increase in users and data?
• Is the software customizable or rigid, creating limitations that obstruct processes and hinder potential innovation?

“Businesses should also consider key factors such as their objectives, budget, future growth plans, vendor reputation, software support, integration capabilities, and development pipeline before deciding on a new software solution.”

Suren Avunjian, LigoLab CEO

Avunjian closes the article by stating that new software saves money and opens new revenue opportunities. He says instead of continually sinking money into an underperforming and out-of-date system, businesses should bravely invest in readily available and cost-effective modern tools. 

“Technology, backed by the right platform and partner, can be a critical component of organizational growth and scalability. When businesses realize this, they put themselves on an advantageous path.”

Suren Avunjian, LigoLab CEO

Related Business Articles Geared Toward Laboratory Information System Software and the Healthcare Industry

For nearly two decades, Avunjian has passionately led a team of best-in-class personnel at LigoLab Information Systems, a laboratory information system company (LIS system company) that specializes in licensing advanced pathology lab software to medical laboratories. Unlike other laboratory information system companies that sell rigid LIS software that can quickly become outdated, LigoLab prides itself on offering the most complete and adaptable LIS system in the marketplace. 

Continue reading to learn more about LigoLab and its advanced medical laboratory solutions.

Navigating the Future of Pathology: The LigoLab Advantage

What You Need to Know Before Contracting with a Laboratory Information System (LIS) Company

What To Do When Your Laboratory Information System Is Sunsetting

Is Your Laboratory Information System Able to Support the Latest LIS System Technology?

It’s Time for Medical Labs to Embrace the Potential of Laboratory Informatics