Risk management handbook
01 Business discruptions02 Unclear direction03 Problem dilemma04 Vendor dependence05 Security risks06 Employee engagement07 Budget and timeline08 Data migration09 Business development10 System stagnation
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10 risks of system modernisation – and how to overcome them

This list gathers the most common pitfalls of system modernisation projects and ways to prevent them. It will support you and your team both in the planning phase and during project execution.

01Business disruptions

Taiste employees having a meeting

Business disruptions during the transition

One of the most common risks is the slowing down or temporary interruption of business operations during the transition phase.

This can be managed through a phased or modular rollout of the new system and ensuring compatibility with legacy systems. A rollback plan is also a crucial part of preparing for unsuccessful implementations.

How to prevent

Manage the transition in phases – and ensure that the old system works alongside the new one during the transition.

02Unclear direction

Unclear direction, scope and priorities

If the business goals of the transformation are not precisely defined, modernisation can easily turn into a technical project without a business foundation. Technical development must always serve strategic objectives – and chosen approaches should be tested in a limited PoC or MVP phase.

How to prevent

Define the direction clearly from a business perspective.

03Problem dilemma

Trying to solve too many problems at once

Addressing too many issues simultaneously leads to complex solutions. It's better to start with the most critical functions and move forward step by step, prioritising them.

Choose technologies and architectures that support iterative progress – avoid chaotic “big bang” approaches.

How to prevent

Start with the most critical problem and proceed in stages.

04Vendor dependence

Taiste employees working in a relaxed office environment

Excessive dependence on a single vendor

If the system's usage and development rely on one partner, the flexibility and willingness to change in the future suffer, as the vendor has full control over dictating costs.

This can be mitigated by favouring open standards, documenting integrations and ownerships clearly, and negotiating exit terms in contracts from the beginning.

How to prevent

Ensure technology and partner independence from the start.

05Security risks

Taiste developers thinking about a problem

Cybersecurity risks and data protection

A significant driver for system modernisation is the need to reduce vulnerabilities. However, it’s important to note that the work inevitably opens up new interfaces and could weaken control unless security is included in the design from the start.

Audits before and after implementation, role-based access management, and consideration of GDPR requirements are minimum-level assurance actions.

How to prevent

Include security and data protection as a design baseline.

06Employee challenges

Taiste developer working on a laptop

Challenges in employee engagement

The biggest risks in adapting to a new system are often human: users do not engage, do not understand the benefits, or find the system cumbersome. This can be addressed by involving users in co-development from the very beginning, demonstrating tangible benefits in daily work, and providing adequate training and support.

How to prevent

Activate users from the start.

07Budget and timeline

Budget and schedule overruns

A technology project always comes with a set of risks, some of which are more likely than others. The risks can be internal or external. Most software has integrations with other services and is susceptible to any problems that these third party products might encounter.

How to prevent

Base the schedule and budget on realistic phasing.

08Data migration

Failure in data migration

Transferring data from legacy systems is challenging if the data quality, structure, or migration strategy are unclear. The transfer should be piloted, and a clear fallback and audit plan should be built before full-scale migration.

How to prevent

Validate, test, and ensure transfers in phases.

09Business development

A Taiste developer testing code on a mobile phone

Business development gets stalled

To prevent other business development from stopping during the modernisation process, build a two-track model where system development and continuous business support progress concurrently. System modernisation should not be left as a side task for individual people.

How to prevent

Separate the system modernisation work from continuous business support.

10System stagnation

Hesburger ERP system on a desktop computer

The new system becomes static or maintenance turns into a bottleneck

A system can be modernised – but still become stagnant. This can be avoided if maintenance and continued development are considered in the planning phase: responsibilities are clearly defined, version control is implemented, and the system is built from the ground up to be continuously adaptable.

How to prevent

Build lifecycle thinking and continuous development from the start.

In conclusion

It makes sense to approach system modernisation as a strategic undertaking that affects the entire organisation. This mindset should guide every key decision in the project.

Thorough preparation does not mean that every risk must be resolved in advance. Rather, it improves the ability to direct development in line with objectives, to tolerate occasional uncertainty, and to move forward purposefully, step by step.

Whether it is an update to a single function or a complete rebuild of the architecture, the key is to start in the right way: keeping the focus on the business goals and with a clearly defined plan for phasing and responsibilities.

Did the ideas presented here resonate with you?

No matter where you are on your digitalisation journey, we encourage you to get in touch.

Get in touch

Vilma Merikanto

General inquiries

vilma.merikanto@taiste.com
+358 44 556 8459