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How to Know When It’s Time to Let Legacy Technology Go

 
December 13th, 2022 by Sanjay Gangal

If any of these 10 indicators ring true for your AEC firm, it could be time to modernize

By Lucas Hayden

Legacy technology reminds me a lot of the aging but still reliable car that has faithfully carried me and my family around for the better part of two decades. Much like legacy software, that car reliably gets us from Point A to Point B — usually, at least — it has features that were ahead of their time when they were first released, many of which still work, and although it’s way out of warranty and has its obvious limitations, it does the things it was built to do. Nothing more, nothing less.

Because it still runs well enough, it’s familiar, has that vintage feel, and carries some sentimental value, an item like this, whether it’s a car or a software product, can be difficult to say goodbye to. Yet in the case of my trusty old car, I can’t help but wonder what I’ve been missing and what I stand to gain by replacing it with something more modern — the elevated features, capabilities and amenities others are enjoying while I loyally stick with the status quo.

Many architecture, engineering and construction firms face a similar predicament with the legacy accounting, financial, ERP (enterprise resource planning), CRM (customer relationship management) or project management systems on which they continue to rely to run their business. They recognize the signs suggesting it’s time to upgrade to a more modern system. They’re aware their continued dependence on legacy software could be putting them at a competitive disadvantage. But change isn’t always easy.

In the vast majority of cases, however, based on my first-hand experience supporting numerous AEC firms in their digital transformation efforts, the benefits a firm realizes by moving away from legacy software, to a more modern solution, far outweigh the challenges that in some instances accompany the transition. Is your firm a good candidate to make such a move? Before we seek to answer that question, let’s first consider the nature of legacy technology. A definition from the tech company Talend seems to capture it pretty well: “A legacy system is outdated computing software and/or hardware that is still in use. The system still meets the needs it was originally designed for, but doesn’t allow for growth. What a legacy system does now for the company is all it will ever do. A legacy system’s older technology won’t allow it to interact with newer systems.”

The definition is useful because it hints at some of the issues that, when present within an AEC firm, suggest it’s time to get serious about shifting away from a legacy system:

  1. Billing is slow, manual, and error-prone, hampering cash flow.
  2. Project managers, proposal-creation teams and others throughout the organization spend too much time hunting for information, and re-entering data manually.
  3. Executives and firm decision-makers lack the timely insight they need to consistently make the right calls for the business. Planning and forecasting are based more on gut instinct than data.
  4. Project managers are frustrated because they feel like they’re flying blind, without ready access to information about where projects stand.
  5. Key performance indicators like revenue, utilization and win rates are sagging, without a clear reason why.
  6. A disjointed, glitchy or antiquated user experience with the software is translating into low user adoption, and it’s detracting from the overall employee experience.
  7. Uniquely valuable institutional knowledge is irretrievably escaping the firm when employees leave.
  8. The vendor that provided the legacy system is no longer supporting or investing in it to add value for you, the customer.
  9. The vendor is no longer actively selling the system, and/or has asked you to move to another one of its products.
  10. You’ve been hacked! Legacy technology can be especially vulnerable.

If any of these issues sound familiar, you might be running a legacy system. And sticking with a  system that is causing these issues could be doing the firm, its employees and its clients a disservice, in terms of the bottom line, the project outcomes it delivers, and the work that goes into delivering them.

So, what now? For many AEC firms, the ability to win more deals, deliver better project outcomes, grow the bottom line, and profitably scale could well depend on a willingness to part with their outdated legacy software. As findings from our just-released benchmarking study, the 2022-2023 AEC Inspire Report (available for free download here) make clear, tech-forward, data-savvy firms hold a distinct advantage over their tech-static counterparts in key areas like profitability, attracting and retaining talent, and project win rate. It may indeed be time to find out what you’ve been missing, and what it’s like to do business with a modern system. How to find one that fits your firm in terms of budget, priorities, needs and wish list? Here are a few basic rules of thumb to guide the search:

  • Dial up the due diligence. Do your research by investigating independent software rankings (such as those compiled by G2), gathering recommendations from peers at firms similar to yours, and evaluating multiple options. Involve relevant teams in the decision-making process (e.g., finance, project management, business development, IT), and ensure the software providers you consider are willing to spend the time to ensure you get the demos your teams need.
  • Look for an integrated (and integration-ready) platform. The goal in moving away from legacy systems is to create a digital infrastructure where fresh data and insight flow unimpeded across the business, and where all your teams, departments and offices are working off a single source of data truth. To get there, your firm’s key systems (ERP, CRM, payroll, etc.) should integrate seamlessly. So look for a provider whose software comes with a comprehensive suite of pre-built application integrations that includes your firm’s preferred business apps.
  • Seek out software that can scale with your firm. A project-based business demands systems that are flexible enough to rapidly scale according to the needs of the firm. Here the edge goes to cloud-based systems with a modern architecture.
  • Make automation a top priority. Doing away with manual data-management and spreadsheet-heavy processes — automated time sheets anyone? — will save employees time and headaches, and improve their workplace experience.
  • Look for a mobile-enabled system to support a hybrid workforce. A mobile app should put systems and data at peoples’ fingertips wherever they happen to be working. App stores can provide great feedback on the usability of a software provider’s mobile offerings, so check the ratings.
  • Ensure the system meets all the latest cybersecurity standards. Cyberthreats are real and escalating.
  • Align with a provider whose track record suggests they will continue to invest in, support and add value to their solution. You want to be confident whomever provides the system will keep pushing to add features, capabilities and integrations that benefit users.
  • Prioritize support. Strong ongoing support from the company providing your solution is a must.

As competitive as the AEC business is, and as much pressure as firms are facing to capture new efficiencies and the right project work, settling for outdated technology that’s merely “good enough” is no longer good enough. Don’t let your business legacy be held back by legacy software.

About the Author

Lucas Hayden is Director of AEC Strategy for Unanet, a leading provider of project-based ERP and CRM solutions purpose-built for Government Contractors, architecture, engineering, construction, and professional services. Email him at lucas.hayden@unanet.com.

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