With any enterprise software, there comes a point in time when it is more cost-effective to replace the software (either with a different vendor solution or a more advanced platform from the existing vendor) than to continue to update it. For CTRM and ETRM software, there are several factors to consider when making this determination.
By far, the most common indication I see as a warning sign that it's time to replace your CTRM or ETRM software is when there is a prevalence of spreadsheet use by people at your company. If a company already made the transition long ago to get off spreadsheets and has been (supposedly) using E/CTRM software since, they should not rely on spreadsheets to run their business.
Then again, if the software is difficult to use, users may seek answers elsewhere and revert to spreadsheet habits. You can then end up with all the problems inherent in using spreadsheets: quality problems, auditing problems, and compliance problems. (Learn more in "4 Reasons to Give Up Spreadsheets for CTRM Software.")
Generally, an enterprise software vendor will make updates available to its customers. A lack of recent upgrades could be the result of:
If a customer has intentionally put off upgrades, even though upgrades are available from the vendor, it may be due to the customer's disappointing past experience with previous releases from the vendor. Alas, not all upgrades go smoothly. Multiple headaches due to consistently bad software will not inspire customers to stay current.
With any enterprise software, the vendor-customer relationship is critical. Ideally, this relationship is a partnership where each side is invested for long-term success.
A common cause for a customer to decide to replace their ETRM or CTRM software is simple frustration with the incumbent vendor. Weak response from the help desk, consistently low quality upgrades, and unaddressed problems with the production software can all contribute to this issue.
Relationships are about people. Many vendors in this space have recently experienced operational changes such as layoffs and reorganizations that can be damaging. Relationships can be strained when key people at the vendor have moved on or been replaced. It is critical software vendors be as consistent as possible with their customer facing personnel.
Implementation problems can come from the vendor side and the customer side. In addition to excessive personnel changes at the vendor, there may also have been personnel turnover at the customer. If the people who have the most experience using the system are no longer with the company, less experienced people will be using the same system yet getting poorer results.
The vendor solution may be perceived as more difficult to use when too many untrained users are logging in, or when upgrades have occurred with inadequate subsequent training. It's one thing to upgrade a customer, it's quite another to enable the customer to use all the latest features to derive maximum benefit. Vendors that have poorly produced release notes or provide little to no follow up post-upgrade leave customers hanging. In these situations, end users may simply stop using the software in frustration. They will likely resort to getting answers another way - outside the system.
Customer training is critical. With sophisticated enterprise software, you get what you put into it. Especially with ETRM software, most customers understand that the added value to be derived from the system is what will enable their success. Once you get past the functional requirements you need, the training that will enable you to maximize your use of the software is what gives you true competitive advantage.
To cut training budgets is to sacrifice long-term success for short-term savings. Saving a little money now by eliminating training may result in exponential costs in the future when the system is not used correctly to maximum advantage.
If it feels like you're stepping back in time when using the software, that's not a good sign. Outdated platforms and old looking interfaces will add to the negative impression users get from the software, especially if the software is also problematic. Again, users may give up and seek answers elsewhere.
If you spot many of these signs described above at your company, what are your options?
There is a generational shift taking place from first- and second-generation transaction based systems to solutions that provide sophisticated, real-time, analytics along with transaction management. It’s still absolutely necessary for a system to have the ability to handle transactions from upstream to downstream, but it’s not sufficient. The system must also harness the explosion of data, both internal and external to the system, and provide advanced analytics to ensure faster, better decision making.
Many of the "older" vendors have been unable to make this paradigm shift due to technical constraints of their platforms. Those companies who adopt Eka's next-generation E/CTRM software platform, InSight CM, will gain competitive advantage.