End-of-Life Technology Planning: How to Determine What Comes Next

Technology continues to evolve at a rapid pace, and organizations must stay ahead of the curve to remain competitive. With legacy systems like Microsoft Dynamics GP approaching the end of their lifecycle in the coming years, it is crucial to start evaluating your organization’s needs and planning for what comes next.

Inconsistent and incomplete information regarding Microsoft Dynamics GP’s upcoming sunset has created confusion for users.
Listen as Eide Bailly’s Alan Clark breaks down the timeline.

Staying on a legacy system like GP threatens your organization’s ability to scale, adapt, and compete in a digitally driven marketplace; however, selecting and implementing new technology also poses challenges. Here’s what you need to know to navigate the transition and position your organization for long-term success.

Understanding the Risks of Legacy Technology

A significant portion of Eide Bailly's clients — 33% of those surveyed — currently use software that will soon be phased out. Continuing to rely on these legacy systems poses several risks that can hinder business operations and growth:

Security Vulnerabilities:

Older systems often lack modern security features, making them more susceptible to cyberattacks. As cyber threats become increasingly sophisticated, the security gaps in legacy technology can expose sensitive financial data to significant risks.

High Maintenance Costs:

Aging hardware and software require more frequent and costly repairs. Updating older customizations can be both time-consuming and expensive, diverting resources from more strategic initiatives.

Between 50% to 90% of a typical IT budget is spent on maintenance rather than innovation.

Incompatibility:

Legacy systems may struggle to integrate with newer third-party applications and technologies that are essential for business growth. This lack of compatibility can lead to inefficiencies and missed opportunities for innovation.

Reduced Efficiency:

Outdated technology can slow down business processes by introducing unnecessary steps. This can result in decreased productivity and higher operational costs.

Limited Support:

As legacy systems reach the end of their lifecycle, support from vendors and third-party experts diminishes. This reduction in available resources can lead to longer downtimes and unresolved technical issues, further impacting business operations.

Opportunities for the Future

Transitioning to a new technology offers numerous opportunities for organizations to enhance their operations and drive growth:

Enhanced Analytics:

AI-powered analytics can provide deeper insights into financial data, enabling better decision-making. By leveraging advanced data analysis tools, businesses can identify trends, forecast future performance, and make more informed decisions.

Automation:

AI-powered automation can streamline repetitive tasks, improving efficiency and reducing the risk of human error. This increased efficiency can lead to cost savings and allow employees to focus on higher-value activities.

Predictive Maintenance:

AI can predict when equipment or systems are likely to fail, allowing businesses to perform preemptive maintenance. This proactive approach can minimize downtime and extend the lifespan of critical assets.

Improved Customer Experience:

AI can enhance customer interactions by providing personalized experiences and 24/7 support. By leveraging AI-driven customer service tools, businesses can improve customer satisfaction and loyalty.

Best Practices for Evaluating New Technologies

When transitioning from legacy systems to modern technology, it is crucial to think critically about the new technology before implementing it — just because a technology is the newest or most acclaimed does not mean it is the best for your specific organization.

Careful evaluation ensures that the chosen technology aligns with your business goals, integrates seamlessly with existing systems, and provides a reasonable return on investment. Here are six key considerations to guide your evaluation process:

Feasibility and Viability

• What are the benefits of the new technology?
• Do you have the resources required to implement this technology?
• Is the ROI reasonable?

Application

• Is the publisher of the new technology stable?
• Will customization be required?
• Is information available regarding existing pilot projects or proof of concepts leveraging this technology?

Usability

• How difficult will the technology be to adopt?
• Can employees use the technology effectively and efficiently?

Integrations and Coordination

• Will the new technology integrate with our existing systems?
• What will be required from a process and systems perspective to add the new technology?
• Will the new technology affect our organization’s competitive advantage?

Security and Privacy

• Will the new technology improve current security requirements?
• Do we have individuals on staff who understand the impact, or do we need to engage a security expert?

Adoption Cost

• What are the costs and resources required to implement the new technology?
• With limited funding for innovation projects, is the investment justifiable?

How Eide Bailly Can Help

Transitioning from legacy systems to modern technology is crucial for businesses looking to stay competitive. By understanding the risks of outdated technology, harnessing the power of AI and other modern capabilities, and thinking critically before implementing new technology, organizations can position themselves for long-term success.

Ready to plan for the future and move away from legacy systems? Eide Bailly can help you achieve a seamless transition and maximize your technology investments.