Modernizing the core: How energy and utilities can move on from legacy finance and billing systems
Modernizing the core: How energy and utilities can move on from legacy finance and billing systems
As legacy platforms reach end-of-life, energy and utilities organizations are rethinking how they manage finance, billing, and customer data. Selecting the right solution involves more than simply replacing outdated systems — it requires aligning technology with business objectives. This article explores how to assess your current systems, evaluate platform options, and develop a roadmap that supports integration, reduces risk, and positions your organization for long-term success.
For decades, legacy systems have underpinned the operations of many energy and utilities (E&U) organizations. However, those platforms are reaching end-of-life, and many leaders are starting to ask not just when but how to replace them.
It’s far from a simple upgrade. These systems support critical functions across billing, customer service, meter data management, and finance. Replacing them means navigating organizational change, not just technology. While the temptation to wait is understandable, the longer you delay, the more likely it is that aging systems will create unmanageable complexity, gaps in service, or unnecessary risk.
So, how do you move forward? What does the right solution look like for your business? And how do you choose when the marketplace is crowded, the stakes are high, and internal capacity is already stretched thin?
Organizations across the energy sector are grappling with these same questions as they plan for the future. While every organization’s path will differ, a few consistent insights can help clarify the way forward.
Recognizing the tipping point for legacy systems
Many organizations still rely on platforms built long before real-time analytics, intuitive interfaces, or connected workflows were standard. But as these systems age, they begin to hold your organization back. Silos deepen, reporting slows, cyber security risks emerge, and the institutional knowledge required to maintain patchwork workarounds starts to disappear.
As more advanced technology hits the market, these legacy systems become more difficult to maintain and justify. Customers are demanding a more seamless digital experience, whether that’s in portals, reporting, and managing their account – none of which older systems can do.
In addition, growing customer expectations do not align with existing technology – cloud-based platforms offer far more to service customer requests and current systems ever could. Outdated infrastructure also lacks the robust cybersecurity capabilities needed to defend against threats, making modernization a critical component of risk management strategies.
There’s a reason modernization projects often get delayed. They’re complex, usually expensive, and touch nearly every corner of the business. When billing, procurement, payroll, customer data, and financial reporting rely on interconnected legacy platforms, it’s hard to imagine where to begin — let alone how to do so without disruption.
Leadership may also be hesitant to introduce change if existing systems still function. However, the cost of maintaining the status quo, from technical debt to user frustration to regulatory risks, all add up faster than you may realize.
Signs it’s time to switch to modern systems
Every organization will have a different tipping point but here are some things to look out for that may signal the time is now:
- Frequent downtime
- Slow processing
- Inability to scale
- Increasing or ongoing costs for maintaining outdated systems
- Struggling to integrate with newer technologies
- Legacy systems cannot support cloud-based solutions limiting flexibility
- Falling behind the competition
- Employee and user frustration in using existing technology
Early planning can make a big difference in the success and return on investment (ROI) when it comes to transitioning to modern systems. Starting small and aligning on business goals first — rather than jumping straight into demos — helps reduce risk and ensures the right solution fits your needs, not the other way around.
Finance and billing platform options: Three paths to consider
As you begin evaluating options, most systems fall into one of three categories:
- Standalone finance systems: These offer core functionality such as budgeting, reporting, procurement, and dimensional accounting. They require integration with a separate billing platform, which introduces complexity but allows you to choose best-of-breed systems.
- Standalone billing systems: These systems specialize in utility billing and related functions. Like finance systems, they require integration with financial platforms and may need custom or pre-built connectors.
- Combined finance and billing systems: These offer both functions in a single platform, reducing integration needs but potentially limiting flexibility if one component underdelivers.
In addition to finance and billing system platforms, as part of the modernization efforts, organizations may elect to include additional systems in their transition plan. This may include selecting platforms that offer greater functionality in order management, data analytics, asset management, payroll, and human resources management.
Each option comes with trade-offs. The right choice depends on how your business operates, what systems you currently use, and how much you want to streamline or specialize each function.
Building a tailored roadmap
The most successful transformation starts by looking inward rather than at vendors.
That means mapping your current systems, understanding how they interact, and identifying what’s critical to keep, what can be improved, and what’s creating friction. This process often reveals opportunities to simplify your application portfolio — and sometimes even lower licensing costs in the long run.
Once you’ve done that groundwork, you can shift into a solution-planning phase:
- Identify end-of-life timelines and vendor deprecation notices: Knowing when current systems will no longer be supported allows you to plan proactively rather than respond reactively.
- Engage stakeholders from every primary business function early: These decisions go beyond IT. Input from billing teams, customer service, finance, and field operations to help ensure that no key workflows are overlooked.
- Document recurring challenges: Whether it’s billing delays, reporting gaps, or inefficient manual workarounds, capturing these early can help you prioritize features and integrations during vendor evaluations.
- Establish guiding principles for solution evaluation: Define how potential solutions will be evaluated, develop vendor criteria, solution demonstration scripts, and evaluation guides to ensure each solution is assessed objectively.
- Build a realistic scope and phased implementation plan: Trying to do everything simultaneously introduces risk. Start with the systems that need replacement the most and structure your rollout in manageable phases.
Having a roadmap in place before approaching vendors keeps business outcomes front and center. It helps you stay focused and navigate decisions with clarity and momentum.
Avoiding common missteps
While every organization’s journey is different, some common pitfalls are worth keeping on your radar:
- Starting too late: Waiting until systems fail narrows your options and can lead to rushed high-risk decisions.
- Skipping stakeholder engagement: If the people using the system aren’t involved early, you risk selecting a solution that doesn’t meet practical needs — and encounter resistance during implementation.
- Focusing only on technology: New platforms can’t fix broken processes. Use this as a chance to improve how work gets done, not just where it happens.
- Underestimating integration work: Even the best standalone systems require thoughtful planning to connect with others in your tech ecosystem.
- Ignoring change management: Transitioning systems affect how people work. Clear communication, training, and support are key to long-term success.
- Not using a third party to assist in planning phase: Existing solution vendors may have bias towards their systems and solutions so it’s vital to bring in a third party to provide fresh insights and address risk.
By planning for these challenges, organizations can reduce disruption, build buy-in, and ultimately get more value from their investments.
Beyond technology: Setting the stage for future value
Modernizing finance, billing, and customer platforms is more than replacing outdated tools. It’s equipping your organization to move faster, operate smarter, and unlock what’s next.
With more energy companies moving toward automated meter readings and digital customer engagement, the volume of real-time data is growing. Legacy systems weren’t built to support that — but modern platforms can enable new capabilities in analytics, AI, and cross-department coordination.
There’s also the issue of cyber security. Many legacy solutions, especially ones on-premises, lack the security features needed to withstand today’s threat environment. Multi-factor authentication, encryption, and real-time threat detection are just a few areas legacy systems likely do not support, making them easier targets for cyber attacks. Additionally, vulnerability increases when older systems aren’t appropriately maintained by vendors, leaving necessary patches unchecked. Transitioning to cloud-based systems with robust security frameworks can significantly reduce your risk exposure.
And from an operational standpoint, a streamlined, well-integrated platform makes it easier to train staff, report accurately, and respond quickly to change. That agility becomes a competitive advantage — especially as regulatory demands, customer expectations, and infrastructure needs continue to evolve.
What leading practices look like in action
One distribution utility provider recognized the signs early. Its finance and billing systems were no longer keeping pace with operational demands or regulatory requirements. Rather than wait for disruption, it launched a proactive six-month review — mapping its current state, defining system needs, and evaluating platform options using criteria like:
- Cloud-native architecture and Canadian data residency
- Integration with payment platforms, meter data management systems, and current technology architecture
- Modern user experience and reporting
- Cost structure and implementation timelines
- Vendor track record in the utility sector
- Customer experience features
Three paths emerged: two standalone system pairings (Sage Intacct + NorthStar, and Business Central + NorthStar) and one combined platform (Sylogist). With a phased rollout, the provider began with enterprise resource planning (ERP) modernization and will expand into meter and customer data systems over time.
Where to begin
If your current systems are starting to show their age — or you’re unsure whether your platforms can scale with your organization — now is the time to take a closer look.
Even if you’re not ready to replace everything at once, a strategic review can help identify where to start and how to build momentum. Whether it’s finance, billing, or customer data, selecting the right platform now can help future-proof your operations for years to come.
MNP Digital helps energy and utilities organizations eliminate the guesswork from system transformation. From assessing current platforms to selecting the right solution and planning a phased rollout, we work with you to move forward with less risk and greater clarity. If you’re ready to take the next step, reach out today.
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