Is integration a better value proposition than a new solution?
As a CFO, you’re constantly confronted with technology to improve business processes, enhance decision-making capabilities, and drive profitability. And, as holder of the company purse strings, you usually have two options:
- Buy and implement new software and integrate it with your other systems.
- Build on the systems and applications you already have to deliver the same outcomes.
The financial benefits of improving how you leverage your data through new capabilities are clear, but the question of total operating cost arises with both.
Every man and his dog may be keen to tell you that a new application is the solution (and at times, we may tell you that, too). But in the real world, and when every dollar counts, that’s not necessarily the right or best answer.
You may already have the data and applications needed to power a new solution, and you just need to bring them together to deliver the desired capabilities.
Is it viable to build?
Let’s talk about Service-Orientated Integration (SOI). This is where your business is viewed as a set of Services to be used together to achieve outcomes.
An example of this is bringing together two existing applications, each corresponding to a different business function (say, admin and retail sales), to deliver a self-service portal for your customers.
The financial value of self-service is obvious. You eliminate data entry costs, and by allowing customers to select services or products they need online, reduce the load on your 8-5, six-day-a-week contact centre. Plus, users can log in 24/7, which makes them happier still.
Done properly, you can provision new functionality and capabilities based on the Services you already have across your organisation. So, there’s no need to introduce cost and risk or incur the expense of more licensing by buying a new system. You’ve used what you already had and made it smarter.
The ‘L’ word and why it matters
We’ve mentioned Licensing in passing, but as it raises red flags for most CFOs, it deserves more than a quick nod. So, what do you need to know?
In short, most applications and systems have completely different licensing models (for example, user-based vs connector-based), and this matters when you integrate them.
If done incorrectly, you can end up paying more than is needed, and the ongoing cost of ownership is greater than expected - which is never a ‘win’ from a CFO's point of view.
This is why it’s not only important that your partner can advise you where integration is the better option, but can guarantee that their approach doesn’t rack up additional licensing costs that negate the savings you’re about to make.
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