is not just about bottom-line cost reductions. A state-of-the-art leasing solution does more than lower costs; it also improves your team’s ability to win new deals and serve your customers.
A big challenge that finance management solution providers in this industry face is the longevity of legacy systems. The rule of thumb used to be that systems were typically replaced every 7 to 10 years. But that number has grown, over the past decade, to 10-plus years.
Many factors underlie this trend, some of them obvious, some less so. One perennial is the simple fact of inertia. Unless faced with a compelling impetus to change, organizations are hesitant to undertake the expense and disruption of replacing a legacy solution and its supporting ecosystem of interfaces, customized development, and workarounds.
Adding to the inertia, this compensatory infrastructure keeps a lot of people busy and secure, as the exclusive holders of ancient and obscure expertise gained through many years of tending to the aging client. In some cases, they form a cross-functional special interest group, with a predilection to resist the introduction of a new system.
But this is not to say that the people who keep the old system alive and manageable are in any way self-serving. To the contrary, their work is not only necessary, it also serves to enable the organization to avoid the expense and disruption of adopting a new solution whose ROI is not seen as compelling.