top-rated free essay

Case Study on Unity Bank

By sguduru Nov 09, 2014 948 Words
In the context of computing, A Legacy system refers to any outdated computer systems, programming languages or application software which are preferred instead of currently available latest upgraded versions. Every organization would start with a system from the initial start to come into existence and with the change in technology in this modern age there are vast advancements which leave these systems in terms of performance and efficiency. And if the organization continue using these systems which they have started with, it indicates that they are running on legacy systems. Every application and software package or a computer system would definitely undergo a change in its life cycle which makes organizations come to a situation to decide on “Whether to replace the existing legacy system or just refurbish it?” Legacy systems share similar characteristics regardless of industry, business, or application focus. Usually, these systems are more than seven years old, may or may not be mission critical, use outmoded or different proprietary technologies, have poorly structured program code, have ineffective reporting systems, and use system and human resources inefficiently. To further complicate these systems, the original design and development team may have changed, leaving the current support team without a complete understanding of the detailed operation of the system. In other words, legacy systems are usually the systems that everyone fears and no one wants to support. An old Enterprise Resource Planning (ERP) or Customer Relationship Management (CRM) package that may even still run on a mainframe are some of the typical examples we can consider for legacy system which every IT organization would come across whenever a new software version of the same comes into existence. This has been an issue for all the organizations and based on their strategic decisions the organizations either adopt the option of replacing the legacy system or refurbishing the existing system. For example if we consider an organization running on Siebel CRM package for their services side of business, and their majority of business relies on this package. With Siebel CRM losing the support required and new options like Salesforce and also SAP-CRM coming into existence gives the organization an edge to choose the best based on their financial and business need and replace the system. Now considering another organization running on an application package which utilizes Java 32-bit and now with the major code upgrades due release they determine that this would need a total change with existing hardware and also the configuration. This triggers the organization to refurbish the existing system to meet their needs by making changes accordingly to match the current setup and also to meet the new requirement. This can be a tailor made approach in re-designing the application package. And I would consider for every organization any of the below options listed in the table below would apply to act on a legacy system:

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.
References:
http://www.deloitte.com/assets/Dcom-Shared%20Assets/Documents/08-1266%20CoreBanking%20preflight%20final%20web%20version.pdf
http://www.powersolution.com/7-ways-to-improve-a-legacy-system/
http://www.datacenterknowledge.com/archives/2013/12/13/legacy-systems-tried-true-systems-whose-time-come/
http://library.automationdirect.com/replace-legacy-control-systems-issue-30-2014/
http://www.techopedia.com/definition/635/legacy-system
http://www.ittoday.info/AIMS/Information_Management/4-05-20.pdf

Cite This Document

Related Documents

  • Unity Bank Integration Case Study

    ...of Delta by Unity Bank forces the integration of two companies with different core competencies, Information Systems and organizational structures and cultures. The CIO of operations, Stuart Irving must decide on the best strategy that would maximize the benefits of the merger by leveraging synergies against the potential costs and risks. Follow...

    Read More
  • case study

    ... CASE STUDY NO.1 Mary Roberts had been with the company three years when she was promoted to manager of the tax department which was part of the controller’s division.Within four months she became a supervisor of ten staff accountants to fill a vacancy.Her superior believed her to be most qualified individual to fill the position. Many ...

    Read More
  • Case Study

    ...Introduction In this case we get an entire scenario about how the Japan deflation set in, what were the effects of the deflation on the economy as well as on the people of Japan. It also mentions about the various reasons because of which Japan was in such a tight grip of Deflation, Depression, Demographics and Debts Guides us through the steps...

    Read More
  • case study

    ...February of 1999. In the past four months, the NC design had developed sustainability. The Bostrom alliance agreement for the truck market had been concluded. The question about Elio's strategy for the entry into automobile still remained. Should Elio's joint venture with Bostrom? Should it partner with a tier-one or a tier-two automotive sup...

    Read More
  • case study

    ...system. 253 2 b.2 Analyzes operational and financial data of organizations in case studies and organizational profiles. 251/260 2 b.3 Conducts research related to publicly traded firms and applies financial tools to evaluate the firm as a possible investment choice. 147 2 c Engineering Management graduates will have an abilit...

    Read More
  • Wellfleet Bank Case Study

    ...Wellfleet Bank Case Study 1. Given its strategy, what kind of risks does Wellfleet Bank face? Wellfleet Bank faces a variety of risk in its daily operations. Risk faced by Wellfleet Bank associated with this case study includes market risk when there are changes in interest rates, exchange rates and other prices. This is especially true for W...

    Read More
  • Aurik Bank Case Study

    ...in this meeting” Agne: Good morning. Nice to meet you too. Benas: Good morning. Gabija: Good morning my name is Gabija and today I am going to start our meeting. As you know The Chief Executive made the statement above to a group of investors three weeks ago. And our bank as a result of unsuccessful investments lost 1.5billion pounds...

    Read More
  • Case Study: Bank of America

    ...Running Head: BANK OF AMERICA Assignment 1: Bank of America Case Study Sylvia Armstrong Dr. Marie-Line Germain HRM 532 – Talent Management January 22, 2012 1. Outline the talent management program that led to success for the company. Bank of America has always been a leade...

    Read More

Discover the Best Free Essays on StudyMode

Conquer writer's block once and for all.

High Quality Essays

Our library contains thousands of carefully selected free research papers and essays.

Popular Topics

No matter the topic you're researching, chances are we have it covered.