The major activities for replacement of any legacy system would include:
• Define/clarify corporate strategy. Develop a long term year plan that clearly defines the future vision and market strategy (e.g., organic growth vs. acquisition). Determine the best way to deliver products and services to customers.
• Understand current IT capabilities. Assess the current IT capabilities and identify critical gaps. Assess the suitability of the current systems infrastructure. Define the optimal enterprise architecture and develop a long-term IT and systems strategy.
• Ensure regulatory compliance. Make sure current Management Information Systems and regulatory reporting practices are effective and accurate. Improve compliance and risk management practices so it can meet expected regulatory requirements for the foreseeable future.
• Define a target operating model. Establish a programme management structure and governance model, and assign a project champion at the executive level. Decide whether to build the core systems in-house or purchase a vendor solution. Define a Target Operating Model for core systems that includes technology, operational, and governance dimensions.
• Position for growth. Assess the operational effectiveness and identify opportunities for efficiency improvement.
The refurbishment process encompasses (encapsulates) an entire system, which may be of any size or complexity. The refurbishment process also provides IS with the ability to evaluate its functional and technical attributes and recondition the system to improve cost and maintainability. The process comprises five key phases: preliminary inventory analysis, encapsulation, application analysis, production standardization, and design recovery.
There is no question that the costs and risks associated with core system replacement are high; however, in light of increasing customer expectations and competitive pressures, many organizations find that the costs and risks of inaction are even higher. If Information Systems is to play an active role in the effort to better control cost, then system refurbishment should be included as part of an overall cost-reduction plan. Systems refurbishment presents IS management with an effective approach to maintenance because it reduces the operating cost of systems, improves system maintainability, and positions systems to support the IS strategy as well as activities associated with business process reengineering, outsourcing, and downsizing.
Refurbishment may also avoid the cost of replacing a system with a purchased package that is in a similar state of disrepair.
There are some wonderful articles which support me to stick to my decision for refurbishment than replacement are listed below in the references section.