In the previous posts of our technical debt series, we explored various ways outdated systems impact businesses—whether through backlog accumulation, legacy infrastructure, or front-end inefficiencies. In this final scenario, we focus on how technical debt can result in lost revenue and operational risks. In this case, Tangonet Solutions worked with a long-term client who faced critical challenges with an outdated core application built on an older .NET framework. Potential revenue losses from not complying with third-party data integrators and operational hurdles tied to acquisition targets were significant risks. In addition, a strategic directive was to acquire other companies in the space and provide a larger, more integrated data provisioning platform. The risk here was that the technical debt accumulated would be an obstacle to that end.
This scenario emphasizes how proactive modernization can help businesses avoid costly setbacks and ensure new business opportunities can be realized without technical debt being an impediment.
Scenario 4: Avoiding Lost Revenue and Operational Problems
Our client had tasked us with updating several peripheral applications over the years. However, when they asked us to work on their core application, we quickly identified a significant issue: their .NET Framework was significantly outdated. This introduced risks not only for future updates but also for two business-critical potential problems:
- They have lost revenue from the inability to integrate with third-party data aggregators.
- Operational problems stemming from difficulties merging with acquisition targets due to outdated infrastructure.
Triggering Event
The risks were apparent. We had new opportunities to integrate with third-party aggregators, but its existing application could not meet the technical integration requirements. This meant it could lose a significant revenue stream if it didn’t upgrade its core application promptly. Additionally, the company had plans to merge with acquisition targets. However, the outdated infrastructure would have made it challenging to integrate these acquisitions, creating costly operational roadblocks.
Tangonet’s Approach: Phased Modernization to Minimize Risk
To address our client’s technical debt without risking its current operations, Tangonet Solutions took a phased approach, breaking the modernization effort into manageable pieces that were easy to scope and budget.
- Phased Module-by-Module Modernization
By tackling the modernization in phases, we ensured that existing functionality remained stable while addressing technical debt one module at a time. This allowed us to:
– Mitigate risk by ensuring the business remains operational throughout the process.
– Gradually upgrade the core application without overburdening our client’s internal teams or budget. - Agile Service Model
We implemented an Agile team model, allowing us to quickly adapt to evolving priorities and client feedback. The team consisted of backend developers, system architects, and a project manager who worked closely with our client’s internal teams. We used tools like Jira for sprint management and continuous deployment to ensure steady and visible progress. - Ensuring Compliance with 3rd Party Data Aggregators
To address the most urgent issue—compliance with third-party data aggregators—we focused on ensuring the system could meet modern data integration standards. This required updating critical areas of the .NET Framework and guaranteeing compatibility with external platforms, securing a new revenue stream.
Outcome: Securing Revenue and Reducing Operational Risks
The phased modernization approach allowed our client to quickly adapt to third-party data aggregators’ requirements, ensuring they could capitalize on this new revenue stream without delay. Additionally, by updating their core infrastructure, they positioned themselves to smoothly integrate with future acquisitions, significantly reducing potential operational headaches.
We mitigated risk and provided immediate value by breaking down the modernization into manageable chunks. This allowed our client to remain operational and pursue new business opportunities while addressing its technical debt. The result was a modern, scalable core application that opened up new growth avenues without compromising existing functionality.
Lessons Learned: The Cost of Delay
Technical debt can hold back innovation, revenue, and operational efficiency in today’s fast-moving business environment. This scenario illustrates how older yet well-established applications need proactive updates to meet modern business demands. Addressing technical debt early (ideally before it becomes debt) through a structured and phased approach is crucial to avoiding potentially costly roadblocks down the line.
Call to Action:
Is your outdated infrastructure holding you back from new revenue streams or operational efficiency? Don’t wait until it’s too late—schedule a call with Tangonet Solutions today to discuss how we can help modernize your core systems and reduce your technical debt.
