Overcoming Fear of Implementation Hindrances in Small and Medium Enterprises
In the realm of mid-market organisations, particularly those within the finance sector, a significant number of businesses are still relying on legacy, on-premises finance systems. This reliance is due in part to the perceived costs and challenges associated with upgrading these systems.
According to a recent survey, 23% of mid-market Finance directors feel that the cost of Right to Use (RTU) licenses makes upgrading finance systems too expensive. Similarly, 32% of these directors express concern that RTU licenses would make it too costly to change their finance systems. These costs can be a barrier for mid-sized businesses, which often have limited resources and less access to advanced technologies.
Another concern is the potential distraction from core day-to-day responsibilities. 24% of mid-market Finance directors fear this distraction as a barrier to upgrading their finance systems. The term "implementation" often evokes great fear among these directors, due to a lack of experience and the perceived challenges associated with it.
The fear of losing historical data is another significant concern. 42% of mid-market Finance directors fear losing their historical data and would therefore have to run two systems in parallel to access it. However, cloud solutions with open application programming interfaces (APIs) can easily migrate historical data from other systems into read-only data archives.
Despite these challenges, the widespread adoption of cloud systems is a recent trend in organisations. Effective training and post-implementation support can remedy challenges with the adoption of new systems. Partners that stay involved in the months following implementation, offering training and troubleshooting issues, can deliver immense value and ensure the system upgrade is perceived as positive by everyone on the finance team.
The use of project management tools provides all parties full visibility of how a project is progressing against key deadlines. Tech resellers and implementation partners can help alleviate concerns and make system upgrades an enjoyable, stress-free experience for SMEs. Understanding and education are crucial when guiding customers through the implementation process today.
Moreover, it's estimated that around 100,000 mid-market organisations in the UK are still using such systems. Many of these outdated finance systems are nearing end-of-support deadlines or are too cumbersome to integrate with other cloud-based systems. The majority (55%) of businesses still cannot achieve a seven-day goal for preparing and submitting month-end accounts due to manual data entry and outdated finance systems.
Interestingly, innovative startups and businesses in fast-growth sectors may have been cloud-first from the start, now seeking advanced solutions for complex needs and larger teams. These businesses, while not traditionally associated with the mid-market, are increasingly seeking solutions to streamline their finance operations.
However, not all mid-market Finance directors are convinced that the pain of changing their finance systems would be worth the potential backlash and disruption. 20% of these directors are sceptical about the benefits of upgrading their systems. A lack of digital skills to use a new system is a key barrier to upgrading for 26% of mid-market Finance directors.
In conclusion, while upgrading finance systems presents challenges for mid-market organisations, the benefits in terms of efficiency, cost savings, and integration with other systems cannot be ignored. With the right support, education, and project management, these upgrades can be a positive step forward for these businesses.
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