Legacy Modernization Trends to Watch in 2020
Companies are facing all kinds of pressure, both internally and externally. This has been especially true throughout the COVID-19 crisis. Businesses have lost revenue rapidly, as supply chain disruptions wreak havoc on businesses everywhere.
It doesn’t matter what industry a business is in, whether it’s logistics, wholesale, or manufacturing, it’s clear that companies are losing patience with the complexities and negative business impact from legacy integration solutions. As an example – not only are valuable orders all too often lost due to an integration snafu, but almost half of IT professionals say that it takes a month or longer to onboard a new trading partner.
At the same time, IT departments are becoming overwhelmed because they must manage integration solutions that support onboarding new business partners. This is in no small part because talent with the specialty skills required is very difficult to find.
In 2020, there is a compelling sense of urgency to solve integration challenges once and for all. Companies now not only recognize the shortcomings of existing integration offerings, they want better solutions and are taking action, driving market demand for more sophisticated integration platforms in the process.
Cleo’s 2020 Ecosystem and Application Integration report explores integration strategy through the “outside-in” lens of ecosystem integration and touches on the role new and emerging integration technologies play in solving the most common applications and data issues challenging the modern enterprise. The report shows legacy modernization trends, legacy application trends, and most of all, how to modernize legacy applications.
Key Findings / Integration Challenges
While there are a number of different legacy modernization trends and strategies that companies can set in place within their enterprise, in order to successfully gain enterprise application modernization, it takes a dedicated effort. Enterprises must embrace modern integration technology and evolve past outdated and manual order processing and shift towards IT process automation across the board.
98% Expect to Gain Value from Ecosystem Integration
Ecosystem integration isn’t simply some buzzword; it’s an entire new way of thinking for enterprises, regardless of the industry. An integration platform allows company to ditch their legacy software and evolve via modern technology to better serve their customers and trading partners.
80% Identified Integration Automation as Their Top Objective
A vast majority of those surveyed sees automating their myriad integration processes as a clear route to value creation via integration solutions.
63% Say Legacy Applications are Their Biggest Integration Challenge
Legacy technologies and implementations were the biggest recurring issue that IT professions are having. Relying on outdated technology means you aren’t putting your business in the most effective way to navigate a potential supply chain disruption.
46% Say it Takes More Than One Month to Onboard a Trading Partner
It isn’t that taking over an entire month to onboard a new trading partner is too long, it’s unacceptable. Companies need modern technology that allows a trading partner to get up in running in days or even just a couple of hours.
Top 5 Reasons for Optimism
Reason #1 – Integration Professionals Know What Capabilities They Want
It isn’t surprising to learn that integration professionals know exactly what kind of features they expect from a technology platform. They recognize the importance of ecosystem integration technology and all the benefits that come with it, including onboarding trading partners quickly.
Reason #2 - Better End-to-End Visibility Across Processes is a Necessity
Whether we are talking about order-to-cash, procure-to-pay, or load-tender-to-invoice, enterprises must maintain a high level of visibility through the lifecycle of a business process. Having reliable end-to-end visibility provides a clear view into transactions between an organizations environment and those of their partners, suppliers, and customers.
Reason #3 - Flexible Architecture and Automated Processes Also Offer Best Routes to Value
Companies need flexibility. They must be able to adjust on the fly, and evolve to better serve their customers’ needs. Automated IT processes show a clear path to success by eliminating those time consuming manual tasks that so many employees waste time and money on.
Reason #4 - Ecosystem Integration Approach is Highly Beneficial
We showed you the stat towards the top of this blog that 98% expect to see value from ecosystem integration. The benefits are clear, from increasing speed and flexibility to accelerating the onboarding process.
Reason #5 – The Urgency for Ecosystem Integration is Real
Because companies are aware of the benefits that come from ecosystem integration, they also recognize at the same time that they cannot afford to delay modernizing their legacy environment. As we approach the halfway point of 2020, companies must utilize integration technology to best serve their customers, suppliers, and trading partners.
Bridging the Gap Between Legacy Systems & Modern Integration Solutions
Enterprises have admittedly grown frustrated with just how complex and unnecessarily costly outdated integration technology is. Out of this frustration a groundswell of optimism is emerging that is driving demand for change. At the root of it all, is the cloud.
Today’s enterprises are starting to put their ecosystems first and have revealed intentions to invest more strategically in integration technology platforms that support ecosystem integration as a means to sustainable, long-term value creation.
Cleo’s 2020 Ecosystem and Application Integration Report includes all of these stats (in more detail) as well as other interesting figures that truly show just how valuable modern integration technology can be. Don’t hesitate, download the report now and modernize those outdated business processes.