Not for Profits often come to me to help them replace a system that no longer meets their needs or what I call a “broken system.” This can be any system: CRM, LMS, Finance, HR, Retail, WHS etc.
Unfortunately, some organisations cannot afford to replace the entire system despite its issues. And for them, they need to find alternative strategies to mitigate the pain points in the shorter term.
So, what are their options?
Alternatives to replacing a broken system
Depending on the situation, these strategies might provide some temporary relief:
- Consider adding a 3rd party tool or extension to an existing system that may better perform a particular function. An example would be to add an event management tool like Eventbrite or EventsAir rather than using the events module in your CRM if this function was “broken.” For a Finance system lacking a good approval process, expense management or budgeting function, there are plenty of add-ons for them too.
- Can you add or fix integrations between systems? For organisations struggling with manual processes, this is often the easiest way to provide some relief for your staff. For popular systems like Xero and Zoom, integration plugins may already be available from the vendors. There may also be 3rd party connectors through workflow apps like Zapier that can automate simple data exchanges between two systems. And if you already have an integration, but it’s not sending all the data you need between systems or it’s unreliable, consider hiring a specialist to review it.
- Is there an upgrade available from the same vendor? Often, an upgrade from an existing vendor is cheaper than a complete replacement. This may be an upgrade to the next tier of functionality or version. It could also be a migration from an on-premise server to their cloud version, though this is often at a comparable cost to a total replacement.
Sometimes, you might just need a better support partner
Occasionally I run into organisations with a fit-for-purpose system but a lousy support partner. For one client in particular, the support vendor told me they were charging the client a fortune to maintain an integration because they didn’t want them as a client otherwise (too small to care).
On another occasion, a proposed upgrade from the existing support partner showed line items that were about 10x the reasonable cost. From that alone, it was clear they didn’t have internal expertise in this area.
And more times than not, I hear about short-term fixes to issues that cause other ones because the vendor lacks a strategic architecture view and has not documented past changes to the system.
But wait! Are you sure you can’t afford to replace the broken system?
I often review an existing system and find the organisation is already spending a mint on support and maintenance.
Frequently, these costs can far exceed the licensing cost of a new system that may better meet their needs out of the box. This will not eliminate the implementation costs of a new one, but the payback period, compared to existing costs, may be faster than you realise.
So, is it better to wait until you can afford to replace a broken system rather than deploying some of these alternatives?
My clients know that I am not a fan of band-aid solutions for broken systems as it often causes technical debt that must eventually be paid. However, sometimes budget constraints cannot be overcome…at least in the short term.
The problem is that many organisations never set aside funds for future year IT investments and try to run their operations on a shoestring budget.
This causes significant risk – read my article: “Why NFPs will fail if they don’t increase their annual IT operating budgets” to understand why.
Therefore, if you are going to use an alternative strategy, understand how long this strategy may work for you and then budget properly for future year investments.
When not to use an alternative strategy?
Despite presenting alternative strategies, there are two times when you shouldn’t wait to replace a broken system. They are when your current system is:
- Presenting significant cybersecurity risks i.e. the system is no longer (or will not be) supported, lacks essential cybersecurity safeguards like multi-factor authentication or has PCI compliance issues.
- Creating business continuity risks like when there are signs that the vendor is not financially sustainable or there are data integrity issues.
Should either of these risks become an issue, your organisation will be forced to make an immediate investment to fix it. And due to the emergency it’s created, it will likely be more expensive than if the system was strategically replaced – not to mention reputational and often financial damage.
Final thoughts about alternatives to replacing a broken system
System replacements are not cheap. Not only are there external implementation costs, but there are usually internal costs or backfill costs too.
Nevertheless, Not for Profits increasingly rely on these systems to run their organisations and engage with their stakeholders. Should they not meet the requirements, the organisation will spend more on manual processes and workarounds than potentially a new system – not to mention the added burden of cybersecurity and business continuity risks.
And while alternative strategies can bridge a gap in the short term, it’s vital that the larger investments are planned for and budgeted just like any other strategic costs.
I regularly help Not for Profits plan their future IT investments. Let me know if you need some help.
Tammy Ven Dange is a former charity CEO, Association President, Not for Profit Board Member and IT Executive. Today she helps NFPs with strategic IT decisions, especially around investments.