What is the cost of using outdated lease management software?
All around the world, countless organizations use old, non-integrated, user-unfriendly and/or outdated lease management solutions to run their asset finance businesses. Unavoidably, this leads to inefficiencies in today’s fast changing world with demanding and impatient customers. If this is also relevant for your organization, then this probably is no news for you. For sure you are aware of the availability of more efficient software solutions to run your leasing business. But for some reason, you were not ready to act yet. While you are waiting, do you have any idea what the cost is of using those outdated lease management software solutions?
In the western world, organizations modernize their ERP and CRM solutions every 8 to 10 years. That is either an upgrade or a complete replacement. In leasing/ asset finance industry this number tends to increase. But also many organizations postpone these projects – even if they actually have to act.
So why do companies postpone the modernization of their asset finance business software in the first place? Well, there are various reasons! Varying from the questions who’s to blame that the old solutions doesn’t fit anymore. To looking up to the complexity and the effort of the replacement.
An important question is what the potential business impact of this delay is. While the list of consequences is a long one, we’ve selected a number of issues that can have a serious material impact on your leasing business:
- Maintaining the current high Cost of Ownership (TCO) that unavoidably belongs to the deployment of on-premise software solutions based on your own server hardware and the internal system management
- The cost of your current poor or broken business processes will continue. And go up even further if you don’t fix it shortly. This can result in a decrease of customer and employee satisfaction. And eventually in the loss of customers and the departure of employees
- You might be using the old good, perhaps the individually customized solution to fit your leasing business needs. Although the upgrades are too costly and even more time consuming, not to mention the functionality is not sufficient enough. Another issue with the outdated software is its incapability to integrate with the modern technology you use for your everyday operations. One more warning sign is that the outdated systems cannot be scaled. In the worst-case scenario, if your current software is no longer supported by the manufacturer, it indicates that if sudden software disruption occurs, there will be no possibilities to have it fixed in a timely manner if possible.
- Perhaps the most important issue: you are using separate software solutions and it slows your business down. Having to manage your business’s lease management, lease accounting, financial accounting with a few different software solutions may not only cause information loss and duplication but also raise the risk of a human error.
If you found yourself agreeing with more than one statement from the ones listed above, it is time to take action and start considering leasing software solutions‘ options immediately.
Modernizing your leasing business software demands for a serious investment. But continuing the use of outdated solutions can potentially cost you’re a fortune!