The true potential of modern platforms – and why it’s often missed
There is a widespread misconception that implementing modern platforms automatically leads to productivity and efficiency gains. This is an unfortunate oversimplification. Platforms offer powerful capabilities, but without the right application, implementation can turn into a disappointment. In this blog, Anna Mark delves into the true potential of modern platforms and explores how organizations can maximise their value.
In our recently released State of Transformation 2024 report, one of the key insights is that technology upgrades, often in the form of replacing older systems such as ERP platforms, are the most common type of initiative. These changes require significant resources and affect many employees, making it crucial to implement them correctly.
However, there are some critical pitfalls to avoid. Here are three common misconceptions and how to ensure that your platform truly delivers.
1. Standardisation does not happen automatically
“We have implemented a standard system, so we are already standardised, right?”
No. Buying a standardised system does not automatically mean that the organisation starts working in a standardised way. Research shows that it is how the system is used, not the system itself, that determines the degree of standardisation. I have seen companies invest millions in new systems, only to discover that they are used in a hundred different ways across the organisation. The result? Anything but efficiency.
To achieve real standardisation, the following is required:
- Common definitions. Everyone must speak the same language
- Clear guidelines. How should the system be used to ensure consistency?
- A data strategy. How do we manage data in a way that drives long-term business value?
If these elements are not in place, the platform risks becoming a patchwork of local adaptations rather than an accelerator for the business.
2. Deviating from standard modules sounds tempting, but is often a trap
“We work in a very specific way, so we need to customise the system to fit our processes.”
It is easy to think this way, but it is more about mutual adaptation. Building too many custom solutions can lead to higher costs, increased complexity, and difficulties in benefiting from future updates.
A simple test to determine whether it is worth deviating from standard modules is to ask: How critical is this process to our competitiveness?
- If the process is business-critical and differentiating, there may be a case for customisation.
- If the process is administrative or supportive, stick to the standard. Otherwise, you risk building future problems into the system.
3. Local solutions can be good, but the bigger picture matters more
“We already have a cheaper and better solution locally.”
Maybe. But the real impact of a platform is often seen at an aggregated level, not always locally.
We have seen organisations where individual departments have developed their own customised solutions. These may work well in the short term, but when it comes time to scale and optimise the entire organisation, these local initiatives often become obstacles. Sometimes, short-term convenience must be sacrificed in favor of long-term effectiveness.
This requires strong change management. Simply implementing a system and then trying to gain buy-in afterward rarely works. Instead, you must:
- Understand the pain points of those who will use the system.
- Make it as easy as possible to use.
- Ensure that leadership has the right competencies to drive the change.
How to maximise the potential of modern platforms
The key to truly benefiting from a modern platform is to actively work on standardisation, minimise unnecessary customisations, and drive change at all levels. Managing the transformation is just as critical as selecting the right platforms and technologies, if not more – successful implementation requires structured change management to ensure adoption and long-term value.
Modern platforms can transform everything, but only if you use them correctly. It is not just about technology but about building an organisation that is ready to leverage its full potential.
State of Transformation 2024
CIOs and transformation leaders from 16 leading Swedish organisations share insights from their transformation journeys. Want to see how your transformation compares to others? Download the State of Transformation report and get a benchmark for your path forward!