From Outdated to Automated: UK Eyes Multibillion-Pound Healthcare Transformation

What is necessary for organizational success isn’t always easy.

And as the U.K. National Health Service’s (NHS) recent 2.5 billion pound procurement request for its Digital Workplace Solutions 2 mega-framework shows, doing what’s necessary to bring critical infrastructure into the 21st century isn’t always cheap, either.

But the fact remains that in today’s rapidly evolving landscape, the pressure on organizations to transition from outdated, manual systems to automated, digital solutions has never been greater. As the NHS initiative shows, many firms — not just across healthcare, but in areas like financial services, too — are increasingly finding that the infrastructure underpinning their core operations is not only siloed but often antiquated.

For decades, many healthcare and financial services firms have relied on a patchwork of legacy systems that have evolved incrementally to meet immediate needs rather than with an eye on future innovation. These legacy systems are typically fragmented, with departments, including payments, operating in isolation.

The result is data silos, where critical information exists in pockets rather than flowing seamlessly across the organization.

While challenge of bringing disparate systems up to speed is multifaceted and formidable, with the right strategy, institutions across legacy sectors can navigate this transformation effectively.

Read more: How 10 Payments Executives ‘Do’ Digital in the Post-Pandemic Age

Many institutions, no matter the sector, often operate on legacy systems that were never designed to integrate with newer digital platforms. These systems were built decades ago with technology that, while cutting-edge at the time, now represents a major hurdle for modernization.

“There are a lot of changes happening across a lot of outdated or antiquated industries. We’re in a good space right now to see a lot of change,” Priority Head of Commercial Court Toomey told PYMNTS.

Integrating legacy infrastructure with modern cloud-based and automated systems often requires expensive, custom-built solutions or complete overhauls of existing systems. But the reality is that not every piece of legacy infrastructure needs to be replaced immediately.

Enterprises can adopt a phased approach, where they gradually integrate or retire legacy systems while prioritizing the digitization of core functions. The key is to develop a roadmap that balances the need for innovation with the cost and disruption of replacing legacy systems.

“The ability to join the dots across different platforms will be key to driving further digitalization and unlocking the full potential,” Duncan Lodge, global head of supply chain finance and EMEA head of trade at Bank of America, told PYMNTS.

Read also: 15 Experts Explain the Strategic Side of Payments Modernization

One of the most overlooked challenges in the transition from outdated to automated systems is human resistance. Employees who have worked on legacy systems for years can be resistant to change, especially when new automated systems are perceived as difficult to learn or threatening to their job security. Moreover, the transition process itself often involves significant disruption, with employees needing to adjust to new workflows, software and technologies.

In an interview posted July 31, Ernest Rolfson, founder and CEO of Finexio, said the shift to digital payments is not just about adopting new technologies, but also about changing organizational mindsets and demonstrating the courage to innovate and achieve a paperless operation.

After all, modernization is not just a technological transformation but a cultural and strategic one as well. Digital transformation must be approached holistically, with all key stakeholders involved from the outset. Moving too quickly without proper planning and cross-departmental alignment can result in a disjointed implementation that fails to deliver the intended benefits.

Providing comprehensive training and support for employees transitioning to automated systems is critical. Moreover, involving key staff in the design and implementation of new systems can help smooth the transition. Additionally, communication around the benefits of automation, such as reducing manual tasks and enabling higher-level decision-making, can help assuage fears about job displacement.

As PYMNTS has covered, change management doesn’t end once a new payment system is in place. Continuous improvement is a key component of successful technology adoption. This involves regularly reviewing the performance of the new system, gathering feedback from users and making necessary adjustments to optimize performance.

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