Biggest obstacles preventing businesses from fully integrating lease management software in 2021
Software for lease management offers a handful of different benefits. If you make the right choice, it can speed up administrative tasks, simplify task delegation and make your entire leasing process tree much simpler. Besides, some tools are fully flexible and very versatile with the capabilities of tailoring them to your specific business needs. Despite that, for various reasons, some companies seem to struggle with the integration of lease software in their business. How and why that is happening? Let’s try to find out!
The first mistake is done before the software is even implemented. Either allured by discounted prices or the convenience of having a nearby developer install their software solutions, companies can soon be disappointed with the lack of compatibility with their needs.
For the most part, software implementation is a very challenging and difficult process to do right. That’s because lease management software plays an important role in how a business is able to run its operation on a day-to-day basis. Hence, only competent and experienced providers should be entrusted with the important task of implementing new tools for your business to use.
The struggles of use can mostly be associated with the lack of coherence between what was seen on paper and what were the company able to extract from the software once it went live. In order to prevent such difficulties and total fiascos, live demos or trials should be used. By requesting feedback from your staff members, you can quickly siphon out the solutions that might be not suited for your business needs. Managers and decision-makers can sometimes do too much and focus only on saving money when choosing to license software for their business. This can lead to a lack of functionality and a lack of overall quality. That is a big problem that prevents management software for leases to be fully integrated.
Statistics tell us that close to 80% of all businesses do not update their software solutions regularly. Especially when it comes to the more vital and significant tools, they choose to run outdated versions and even legacy software for the sake of not having to go through the transition period. But we can establish that doing so is preventing that almost 80% of businesses from gaining so much more benefits.
For lease software, new tools or their updated versions can add much more depth and versatility to what may already be an extensive list of features. Developers are usually keen to add new and useful features in order to attract new business. It’s in their best interest if they are still selling that software.
So, every once in a while, you should explore the market to see what kind of added benefits you could get from switching your outdated legacy lease management software to an up-to-date version. For example, when it comes to modern solutions versus programs from, let’s say a decade ago, there’s much more automation today. You can expect to find things like credit score automation, risk management, and other AI tools with more depth. They make the job of your staff a lot easier.
Sometimes businesses are content with their current choice of management software for leases. However, that contention can be quite hazardous as it makes them oblivious to the future and vulnerable to making plans for growth. Even though the software solution is capable of meeting your demands and needs right now, if you decide to expand, it might not be scalable at all.
Besides, the software should offer flexibility in terms of which features you can use on-demand. For example, you might not need too much detail in terms of portfolio analysis or reflection after a quarter. With that being said, after a while, management may be interested in seeing more analytics regarding active contracts and trying to find ways to earn more money. This is yet another reason why a lot of businesses struggle to fully implement and integrate software solutions.
Now businesses are usually open to choose either a cloud-based or an on-premises solution for software implementation. In the past, only the latter solution was a real option.
But nowadays, with more and more businesses transitioning their data storage to databases in the cloud, this solution is getting more and more popular. On the other hand, the on-premises option is becoming harder to maintain and fewer companies choose it over something that doesn’t require any physical hardware.
Our experience shows that when choosing dedicated equipment leasing management software or just lease management software, in general, to be installed on-premises, some businesses vastly underestimate the hardware requirements and the technological burden of running and sustaining such a system. Especially when you consider scaling and the need to invest in new hardware, it can really halter growth and even force a change of plans.
The easiest solution to this problem is to just migrate your data to the cloud. It’s cheaper to maintain and poses less risk for everyone, especially you!
If a business made the right choice for lease software and has the luxury and benefit of using it on a daily basis, it still might not be enough. There are usually financial obstacles that prevent the company from either utilizing the full array of benefits from the software or preventing from implementing it at all.
Every company is different and they should focus on their own individual situation to make the decision. For some businesses, the best option is to just pay for a license per user. Others could opt for the SaaS model which is more and more popular nowadays. Finally, there are options to purchase a perpetual, lifelong license. Analyze the pros and cons internally to make the best decision, also accounting for potential future growth!