Why do systems need to be replaced?

Answer 1

• Changes in the business environment in which a company operates and trades
• Changes in the company's main activities or in the nature of the company
• A company grows so much that it has to replace current system
• Increase in the productivity of an organisation
• To get to and maintain an advantage over their competition
• Changes in technology, with older systems being completely outdated
• Downsizing from centrelised to desentralised decision making and information systems

Systems need to be replaced when they no longer serve the purpose for which they were originally intended. For instance, as software advances it creates greater and greater demands on the hardware, thus the hardware must be upgraded to keep pace. And as hardware becomes more advanced, the software is improved to take the fullest advantage of it.

When running a business, it pays to keep pace with modern technologies, upgrading existing systems and replacing outdated technologies, for the simple reason that if you don't, your competitors will, and your business ultimately suffers!