When Legacy Knowledge Dies: Why Obsolete Systems Put Your Business at Risk

legacy

There’s a hard truth many organizations don’t want to face: some of the legacy systems running their businesses are so old that the people who know how to maintain them are literally disappearing.

If you’re still operating on platforms like IBM iSeries, AS/400, or mainframe green-screen systems from the 1980s and 1990s, you’re not just sitting on technical debt. You’re sitting on a ticking time bomb.


The Human Side of Technical Debt

The challenge with these legacy systems isn’t only about outdated code or clunky user interfaces. It’s about people.

  • The workforce that grew up on these technologies is aging out of the job market.
  • Younger generations aren’t being trained to maintain obsolete systems.
  • As specialists retire — or pass away — their knowledge goes with them.

That means even if your system “works,” you may not have anyone left who can keep it running.


The Illusion of Stability

Legacy systems often give leaders a false sense of security. They’ve been running payroll, processing orders, or managing inventory for decades. They feel reliable.

But what happens when:

  • A core batch process fails and no one remembers how to fix the COBOL code?
  • A green-screen program corrupts data and the last person who knew its logic left five years ago?
  • A hardware part breaks that hasn’t been manufactured in 20 years?

At that point, it doesn’t matter how “stable” your system was yesterday — it’s now a single point of failure.


Why You’ll Eventually Have to Upgrade

The case for moving off these obsolete systems isn’t about chasing the “latest and greatest” cloud ERP. It’s about survival.

  • Supportability: If no one can maintain it, it’s not sustainable.
  • Integration: Legacy platforms weren’t built for modern APIs, analytics, or AI.
  • Resilience: Outdated systems can’t easily adapt to new regulatory, security, or market demands.

It’s not a matter of if you’ll have to upgrade — it’s when. And waiting until the system literally breaks is the most expensive, disruptive way to find out.


What Leaders Should Do Now

  1. Inventory Your Legacy Risks
    Identify systems more than 15–20 years old and the people (or vendors) who still know them.
  2. Capture Tribal Knowledge
    Document critical processes and code logic before key employees retire.
  3. Evaluate Interoperability Options
    You may not need a rip-and-replace today. Tools like Palantir, Snowflake, and Databricks can help extend the life of legacy ERPs while modernizing data and analytics.
  4. Build a Long-Term Roadmap
    Even if you buy time with interoperability layers, plan for the eventual replacement. Otherwise, you’ll inherit chaos when the last expert is gone.

The Bottom Line

Legacy systems might not look broken, but the knowledge gap around them is breaking — quietly and irreversibly.

As the last generation of experts ages out, organizations clinging to 40-year-old technology risk losing not just competitive advantage, but the ability to function.


Learn More

Explore how to future-proof your transformation in our Digital Transformation Report, which includes independent reviews of ERP and interoperability strategies.

And don’t miss

The Executive Mastermind
An exclusive peer network of transformation leaders collaborating on strategy and innovation.
Learn more: thirdstage-consulting.com/the-executive-mastermind

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Eric Kimberling

Eric is known globally as a thought leader in the ERP consulting space. He has helped hundreds of high-profile enterprises worldwide with their technology initiatives, including Nucor Steel, Fisher and Paykel Healthcare, Kodak, Coors, Boeing, and Duke Energy. He has helped manage ERP implementations and reengineer global supply chains across the world.

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