October 29, 2018 Stewart Marshall

THE SYSTEM REPLACEMENT FALLACY

Systems get old and some genuinely need to be retired. However, all too often we see new systems being implemented that replace something that’s been running a business for years, and there’s every chance it could be a huge waste of money.

When thinking about a replacement system, be sure to understand the value proposition before you start spending your hard earned cash.

Here’s the key message – YOU’RE ONLY BUYING THE DIFFERENCE BETWEEN THE TWO.

Your incumbent system already provides the majority of the functionality of the new one, and given that you’re likely spending many thousands, if not millions of dollars, you need to ask yourself some tough questions about the return on investment and whether a make do and mend approach would be better use of your doubtless scant resources?

What if some of the money was spent on some much cheaper developers to make an add-on to your existing system?

What if it was spent on marketing and customer retention or staff training.

What it was spent on all of these?

As ever, beware those who sell the shiny, new IT things for a living. It’s their job, and altruism is rarely overly high on their list.


100 Tips and Hints

MarshallFloyd – People and Technology – Download our free guide with over 100 tip, hints and ideas you can use to improve your IT.

Leave a Reply