Introducing new software into a company is a complex process that involves not only technical aspects, but also organizational and human factors. A successful rollout determines how quickly the investment in the software will deliver the desired added value. Studies such as the Standish Group Chaos Report have shown for years that a significant proportion of IT projects fail to meet their original objectives. This makes it all the more important to set the right course early on. Here, we will outline the most important steps, challenges, and recommendations for rolling out new software from a provider's perspective. The aim is to offer financial service providers facing this challenge ideas that will make planning and implementation easier for those responsible and project teams.
The experience is based on software designed for leasing/credit and factoring processes in the front, middle, and back office. The basis is a product that largely reflects the best practices of around 50 customers. Using an MVP approach, this is turned into a first usable release based on specific additional requirements. Intermediate steps may be necessary in the case of larger conceptual gaps – as described here by my colleague Dr. Christian Schmidt Gair.
Planning and preparation
As always, careful planning is the cornerstone of a successful rollout. It is during this phase that the course is set for the subsequent accuracy, acceptance, and thus successful use of the new software.
Needs analysis
Determine the requirements and expectations of all relevant business areas for the solution. These are often already available from the evaluation process and, if not already done, must be prioritized (e.g., must/should/can). In addition to classic approaches (e.g., process cost savings), methods such as "buy-a-feature" etc. can be used for the evaluation. Together, they form the basis for the joint rollout plan and procedure as well as the initial scope for the MVP.
Goal definition
First, define clear goals for the MVP as the initial result, both business and technical. Experience shows that it does not have to fulfill all the value creation potential of the target processes, but it must focus on implementing the most important ones.
Project team
Put together an interdisciplinary team with a high level of user expertise. This approach allows development to take place close to the operational business. The associated early joint insights save immense costs in later major adjustments. Current research on the analysis of change management strategies in digital transformation emphasizes that the early involvement of affected employees significantly increases the success rate of such projects.
Process review
Software for digitization and automation in particular has a considerable impact on the amount of work involved in a company. Regardless of whether self-service will be used by partners or customers in the future, work steps will be completely automated, or new activities will be necessary, all of this must be distributed across the target organization and target processes and mapped with the corresponding resources.
Communication strategy
Develop a communication plan for all participants and affected parties at an early stage. Transparency helps to build trust, and the proper management of expectations makes an invaluable contribution to the success of such a program.
Technical preparation
In addition to organizational preparation, technical implementation is crucial. Among other things, the following aspects must be taken into account, although this article does not claim to cover the topic in its entirety:
Architecture principles
There is no one-size-fits-all approach for all use cases.
- Service-oriented architectures include functional systems that can be integrated into more complex environments via standard APIs.
- Alternatively, in clearly defined units or with a complete end-to-end scope, a self-contained architecture (such as Microsoft Business Central for medium-sized businesses or SAP for large corporations) offers advantages.
System integration
There are currently a large number of integration best practices on the market. The ability of new solutions to network via APIs is essential. Established standards such as the OpenAPI specification greatly facilitate interoperability between systems. The Bitkom guide to Open API also offers practical recommendations for the professional use of open interfaces. In more complex constellations, it is often worthwhile to use an intermediate layer. This minimizes the need for customization of standard products and facilitates interchangeability and expansion.
Data security
Consider data protection and IT security as early as the preparation phase. Testing and data migration in particular have become more complex due to regulatory requirements.
Change management and training
As already mentioned above, processes will change in many ways. Standard software rightly claims to offer best practice. Opportunities are missed by replicating existing processes 1:1. This requires timely and clear communication within the teams and professional management of the change process. After all, employee acceptance of the new software is a critical success factor.
Once the target processes and structures are visible, the teams must be thoroughly trained in the new requirements and software. The following points must be taken into account:
- Determine training needs: Identify different user groups and their specific training needs. It is worth identifying the topics and determining any gaps based on the core processes and supporting processes.
- Training formats: Offer a variety of formats, from classroom training to online tutorials.
- Multipliers: Train key users to act as internal contacts. They can also become "ambassadors" for new processes and opportunities. This is especially true for companies with larger teams.
- Feedback channels: Set up opportunities for questions and feedback to enable continuous improvement.
- Communication: Communicate openly about the benefits and goals of the new software.
Rollout using the MVP approach
Introducing new software in a company is a complex process that can be made less risky and often more efficient by using an MVP (minimum viable product) approach. Current research on phased rollout strategies with update rings confirms that a step-by-step approach has been shown to increase the success rate of software implementations. In the MVP approach, a functional version of the standard software with the most important additional individual core functions is provided first. The aim is to deliver real benefits as early as possible, generate feedback from users, and thus minimize risks before further features are developed and rolled out.
Advantages of the MVP approach
A key advantage of this approach is the reduced initial investment: focusing on the most important functions lowers development and implementation costs, as resources are used in a targeted manner. The software can be put into productive use earlier, leading to faster efficiency gains and a quicker return on investment.
At the same time, the risk of bad investments is significantly reduced because the solution is tested early on in the market and unnecessary features are avoided. Investments are made gradually and according to need, which enables flexible resource planning.
Risks and how to minimize them
However, the MVP approach also involves risks.
- Functional gaps: Since only the most important functions are provided initially, users may miss certain features, which can lead to frustration and acceptance problems. This is especially true if expectations are not clearly communicated.
- Scaling problems: An MVP is often not optimized for high user numbers or complex processes, which can lead to bottlenecks.
- Media breaks: Interfaces to existing systems are sometimes not fully implemented in the MVP, which can lead to media breaks and manual workarounds.
- Security aspects: Security aspects must be explicitly taken into account in the MVP in order to avoid the risk of data protection violations or compliance problems.
- Feedback overload: A large amount of feedback can overwhelm the development team and cause important ideas to be overlooked.
To minimize these risks and fully exploit the cost advantages, an iterative approach is recommended: The introduction starts with a representative pilot group in order to obtain targeted feedback. The feedback is then used to further develop the software in a targeted manner and close any gaps.
Parallel operation of two systems
Another aspect is the need to have two software products in productive use during the MVP phase. It must be precisely identified and defined which software is used for which case until a complete replacement has taken place.
Overall, the MVP approach offers cost advantages and minimizes risks in software rollouts when combined with thoughtful planning, targeted monitoring, and iterative development. Companies benefit from rapid market entry, learn early on from user feedback, and can optimally control investments.
Conclusion
The rollout of new software, especially when it maps critical processes in the company, is much more than a technical project. As a company, it is essential to be aware of the success factors and to proactively shape them. In our experience, new customers who explicitly focus on this multidimensionality save costs and work more successfully with our solutions.
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