It is tough to nail down the true cost of operating legacy data management systems. People typically talk about the cost of the system itself. We pay "X" dollars per year or month for such-and-such system. Some may have an idea of how much of their IT staff is allocated for the "Y" maintenance costs of the legacy systems. If they are really on the ball, they will even include the "Z" that comes from server or mainframe cost. But there is often not a true understanding of the costs and perils that lie beyond the XY & Z cost that makes up the overall system, staff, and equipment.
We have written extensively about the additional costs associated with legacy data management systems; those blogs are linked here as well. We wanted to bring some of them together to help drive the point home clearly that the potential costs that exist past XY & Z can be significant.
- Dumb Data- Data non-accessibility on multiple systems that do not communicate
- We live in a connected world where we expect things to talk and work together. Legacy systems make this difficult and create the need for monstrous workarounds that end up sucking significant organizational bandwidth and have a high chance of failure.
- Cyber Threat- Trusting the security of 10-20-30 year old systems
- Cyber threats are becoming more and more sophisticated everyday. Unfortunately, operators of legacy systems can do very little to protect themselves because their base technology is outdated and easily hackable by modern standards. IT professionals run themselves ragged trying to plug the potential leaks in the dam that was just not build to hold back that much water.
- Employee Dissatisfaction- Having a modern worker perform rote tasks
- Nothing says, "if you want to develop the skills of the future, go work somewhere else" more than having an employee manage a database that looks like something they may have used in middle school, or asking them to triple enter data into multiple systems. People want to work on a system that can help them develop transferable skills, while making data entry and management as easy as humanly, no, "computerly" possible.
- System Manager Retirement- Your data is at risk of IT retirement
- Have ever asked the question, "why do we do it this way?" And no one knew the answer because the person who developed the process had retired. Do you know how big a risk it is to have a system that is maintained by a staff nearing retirement age. Worse than that, there is no younger blood to hire with the skills to maintain your system because they consider it old technology and a dead-end job.
- Time and Money- Doing nothing and waiting for your runoff systems to runoff
- Insurance leaders know that their staff are spending time on maintaining legacy systems, but they rarely know how much. Studies have shown that as much as 80% of IT budget and 85% of IT man-hours are used maintaining legacy systems.
Fortunately, there is an option to help you retire those legacy systems, allowing you to cut the cost of your system, staffing needs, and equipment while addressing and helping to alleviate the top five hidden costs of legacy systems in a significant way. The p1 platform allows you to meet hidden costs head on:
- Accessible connected data- Because all the data is on one platform, all of the data is easily connected and converted into any useful report or analysis necessary.
- Secure Cloud based data storage- Because your data is stored in the cloud on Microsoft Azure, you have one of the best cyber security teams in the world ensuring the security of your data 24/7 and always looking for what's next.
- Dropping redundant work and working on modern platforms- People do not want to perform redundant work; p1's single platform approach is designed to ensure that once data is in the system, it is connected and accessible so it will not have to be entered again. This includes reports that, once built, can be available anytime on demand without having to collect and enter data from multiple systems.
- Working on a modern platform- Employees will be working on programs that run off of the architecture of the web today. So finding people to work in the environment and manage and maintain the system will not require a call to a middle school computer lab teacher from the early 90's.
- p1 was designed specifically to save insurance companies time and money- p1's "power of one" philosophy works as your data management specific IT team, eliminating the data management system drain from both your IT staff's time and budget.