The cloud solutions market is growing rapidly. This is also true for the Purchasing sector, which is experiencing a turning point regarding what to do to definitively embark on the digitalization of processes.
There are obviously many benefits to migrating to the cloud, but it is necessary to know whether the company is really prepared for this change and understand that implementing a solution can generate costs and new challenges for the sector.
Contrary to what many people believe, migration is not just a click away; and there are several factors that can drive up the costs of a migration:
Very broad scope
Many projects fail simply because they try to “embrace the world.” This happens when a company tries to digitize all its processes at once, without thinking about updating or optimizing processes before the migration. One way to avoid this problem is to rely on a provider that provides a Minimum Viable Product (MVP) that typically covers 70% of the essential processes and requirements for the business, and leaves the other 30% for a little later.
Lack of transparency in implementation
Some cloud migration projects can take years to complete, and the longer they take, the longer it takes to see benefits. One way to avoid this is to be completely transparent during the implementation and focus on achieving some quick benefits, such as cost savings. Plus, once the MVP is complete, it’s easier to communicate the improvements that are already happening to everyone in the company.
User acceptance
Changing familiar processes always causes fear among users, who are reluctant to use the new tool. If the migration is not done transparently, showing all the benefits of the new tools and making it clear that the change also benefits the user, there is a high risk of boycott. Therefore, project managers need to understand and manage employee expectations. Ask for feedback as soon as the MVP is up and running and make it clear that suggestions will be analyzed and incorporated into the next phases of the project.
Change of requirements
It is rare for the final product of a project to follow 100% of what was planned. The reality shows that several changes need to be made during implementation – unforeseen problems, for example – and this can lead to delays and frustrations. Since digital transformation is much more than just digitizing manual processes, its implementation aims to bring improvements to the business and this may require radical changes in the processes to be digitized. Therefore, it is important to analyze the needs of users and how changes in the Purchasing processes may impact their work. The best practice for this is for all departments involved to be heard during the project discussions and for it to be implemented through short sprints.
Costs
According to Gartner, only 60% of projects are completed on time and 71% are within budget. Therefore, choosing the best method to implement the migration to the cloud is essential to ensure that delays do not occur or are quickly resolved. Delays force employees to continue using inefficient processes, which means lost business opportunities.
The main reason for implementing a SaaS Procurement solution is due to the low implementation and maintenance costs. This means faster ROI and better management of the applications used by the sector while gaining greater visibility into spend.
COSTDRIVERS is a SaaS platform that provides exclusive tools and information on prices and costs in various segments. Our specialty is transforming data into insights for strategic decision making. Contact us and find out how we can help your company.
