New Rules for Lease Management

System Selection

Author: Madhu Natarajan, CEO Odessa Technologies, Inc.
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As leasing solutions evolve, so must the
definition of ROI

Given the expense, disruption, and ruffled feathers that accompany the transition to a new lease management system, it's no surprise that organizations tend to delay a replacement project for as long as possible. Weighing the costs and overhead of buying and implementing a new leasing solution against the costs of living with a legacy lease management system, such postponement is understandable. And this judgment is slow to shift, despite the costs of an aging system and architecture that can necessitate added staffing, require ongoing customized development, and demand ever more workarounds, not to mention its accounting, reporting, and compliance challenges.

But no leasing system can be kept viable forever. Eventually, various contributing factors tip the scales in favor of replacing the incumbent solution:

  • Its inability to scale limits portfolio growth
  • A changing regulatory environment has rendered the system obsolete
  • New corporate initiatives may demand business processes that it cannot support
  • Antiquated architectural components may no longer satisfy security or compliance standards
  • Entrenched champions of the old system are no longer around to support it
  • Getting functional enhancements from the provider is prohibitively expensive and time-consuming