Jack Welch, ex-Chairman and CEO of General Electric famously said, “If the rate of change on the outside exceeds the rate of change on the inside, the end is near.” With the technological advances in trading and risk management solutions of recent years, many companies are questioning the ability of their legacy systems to support growth plans.
Unfortunately, there are no fixed guidelines to determine the right time to replace a legacy CTRM solution but there are sure-fire signs of when a legacy CTRM system is no longer an asset to the company but instead, a liability. When should that line in the sand be drawn? When is enough, enough?
This blog explores the five signs of when it’s time to call time on your legacy CTRM solution.
1. Adapting to market changes happens… eventually
Agility and competitive edge are key to any organization’s success. So how does one remain competitive using old functionality, which in some cases is detrimental to trading and risk operations? What happens when your competitor doesn’t have this legacy problem? Infrequent software updates leave us with legacy systems, which in turn give us legacy processes: it’s the gift that keeps on giving.
Any approach that manages changes in pieces is challenging because the victories of incremental change are followed by long periods of stagnation. This approach may have served a purpose 20 years ago but the world has moved on and this ‘stop and start’ strategy simply doesn’t cut it in today’s fast-paced world.
2. Your IT budgets are taking a hit
Like maintaining an old car, the upkeep of legacy software is expensive. And guess what? It gets more expensive over time. Sustaining an outdated system requires significant resources, often with diminishing returns. Would you continually throw large chunks of your IT budget and team’s time only to risk business outage and limited functionality? That should not be the cost of doing business. Not when there are modern, flexible and enterprise-ready software alternatives available, which embrace innovation, cost savings and competitive edge.
3. Your resources are feeling the pain of proprietary software
If we look at traditional CTRM solutions, they’re often large, clunky, and proprietary, making them difficult and expensive to customize. To implement bespoke changes is almost impossible without expensive, scarce resources. However, let’s say you do have the resources to manage proprietary software. Is it agile enough to scale with your business? Is remote access a given? Is data secure? And most importantly, is your business in good hands?
4. The future looks bleak
How promising does your future tech stack look? For example, does your current system integrate with the latest and greatest technologies available? Most legacy solutions were designed as siloed systems – never to integrate with another software. They were fit for purpose decades ago but as company objectives and mandates evolve, so should all the moving parts that drive organizational success.
Unaware of how prohibitive an outdated CTRM solution can be, some organizations throw good money at bad by integrating existing systems with modern solutions, which doesn’t always bode well when a system’s architecture wasn’t built to support such synergies. One potential outcome of a poor integration is the rise of data silos, crippling a department’s access to data in a streamlined manner.
5. New employees working with old solutions
How does it look when you hire a new employee and then introduce them to legacy software? What message does it send? That it’s ok to postpone today’s concerns and face them in the future because old habits and systems can (just about) do the job?
CTRM as a Service delivers all the functionality of a legacy solution without the limitations and costs. Modern technology drives continuous improvements and system updates without compromising business continuity. More companies are turning to cloud native alternatives because adoption and customization are smoother and available on an on-demand basis, making a cloud native CTRM solution invaluable to a company’s growth and longevity.