Forget ROI, Cost of Inaction (COI) Is The New Catalyst For Change - Modernization
Businesses, big or small, are entities that live and thrive on seizing the right moment. The golden opportunity stands on your doormat many times but knocks only once. You grab it, you soar high. But in the hullabaloo that is business, opportunities come and go. As conventional practitioners of business, we are programmed to think of the consequences of getting in on a golden opportunity. Nobody in their right mind ever thinks about the repercussions of not answering the door. Return on Investment is how we see things. But what about the cost of passivity?
ROI is crucial. It’s a fairly simple concept. You invest time, money, and/or resources into seizing the right opportunity – In this case Modernization. You factor in the associated risks and the factors influencing the results and put a number to the outcome. But, if you do not prioritize seizing the opportunity. Is there an impact on the business? Many customers do not prioritize modernization and simply put this off for another six months. What is the cost of “doing nothing”?
Let Me Tell You A Story
Imagine an entrepreneur who started a business a year ago. Lots of stuff to do. The entrepreneur ends up doing most of the work.
The entrepreneur now spends most of the time in the office. There is little to no quality family time. That is understandable when it is in its nascent stage.
Now we fast forward to the present. Business is booming. The start-up is on the verge of being a unicorn. The Cost of Inaction for this Business is that, not invest in learning, hiring, work delegation on technology investments, and leveraging fully automated systems.
The business and the entrepreneur are suffering in more ways than one.
The cost of Inaction multiplies exponentially over time, hence the early the better to start modernization. In other words, the impact of addressing the issue now will be way bigger than what it would have been 6 months ago.
The Key Metrics Of Cost Of Inaction (COI)
Similarly, your business is grown, but your systems are legacy/On-Premise and do not cater to the post-pandemic demands, companies are forced to revisit their ERP strategies. All because the traditional ERP systems aren’t enough to support the major paradigm shifts of business models. So your cost of inaction for
- Opportunity Lost – The competitive edge of transformation to cloud, being the laggards of Modernizations
- Missed Revenue - Whether it is reimbursable or fixed, an inefficient system leads to missed items, transactions, or progress.
- Frustration Cost - When your staff is spread thin doing disproportionate work that adds no value.
- Cost of Quality - quality issues with reporting, decision making, and information management.
- Cost increases over time - enterprises face maintaining a double cost: the human resource required to keep these systems up and the lost opportunity for growth with such a large percentage of the IT budget spent on operations and maintenance
- Loose on the opportunity for Continuous Development – With cloud offerings expanding, opportunities for business advantage and cost savings from an on-premise environment
- Cost of Security Risk - Security of the systems need to evolve over time and inaction increases risk
Bottom Line: You Want To Grow – Embrace Change, Embrace Modernization with Dynamics 365
A ton of your competitors are already making their cloud migrations. It sounds challenging and unnecessarily frivolous at first. A closer inspection of companies before and after their migration to the cloud unveils another real difference. Think of it like any other long-term investment. Dynamics 365 cloud would transform your business.
Dynamics 365 gets you ahead of the competition and enables business-driven transformation. Whether it is increased functionality, customized reporting, and real-time insights or pivoting necessary resources to handle the unlikeliest of scenarios, Dynamics 365 and its business applications can be the mast that holds your sail to the winds of change.
Read some of our customer success stories and their take on the modernization journey and how Sonata has helped simplify business processes, delivered faster time to market, and meet the goals.
Don’t look for short-term gains. We are here to look at the bigger picture. IT productivity and an improved business portfolio are just the beginning. We are here for the long haul, i.e., bringing down your legacy system or your on-premises costs permanently.
The Dynamics 365 Migration Program assessment is your friend. Let it help you achieve a lower total cost of ownership. Cost of Inaction is the name of the game. Dynamics 365 is the weapon you need.