Insights

Rip and Replace vs. Integrate and Enhance

December 18, 2024
Michael Hirsch

Ripping out your ERP or Production Allocation system (or one of the other Big Six pieces of software) to replace it with another is a huge decision, not to be taken lightly. For ERP’s alone we probably have 10 horror stories about the ‘replace’ option.

But is there another way?

Could the features you need be integrated and enhanced using external tools or is your existing tech stack more capable than you thought?  Before you go tearing your whole house down, consider whether a simple addition could handle your growing family, er… business.

Frustrations with Legacy Software

Look, we’ve all been there.  Oil and Gas software is notoriously frustrating.  Programmed in some forgotten language in the 1980’s with Windows 3.1 UI/UX (if you’re lucky!), it technically does the job, but you really wish it had this killer feature you had at your old company.  It’s not even that much more expensive!  Sure, there will be some growing pains.  It’ll take some time for QC to make sure the data’s still coming across, but it’ll all be worth it in the end, right? Right??

Underestimating Project Cost by Underestimating Hours

Implementing new software is disruptive, costly, and never perfect.  The bills you’ve been getting are easy to compare to the contract you have in front of you for that shiny new system, but those costs aren’t half of the story.  Training, QC, Integration, and implementation hit everyone up and down the hierarchy and add up fast.  In our experience these are often massively underestimated.   Customers wind up losing features they’d assumed the new system had and wind up with yet another imperfect solution, now with a 6-month implementation to deal with on top of everything else.

So, what should you do?

Before you pay for implementation consulting and throw 2,500 employee hours at a new software implementation that may never pay off, consider consulting with an expert.  Have you taken our Software Survey and reviewed the report on what other companies your size are using?  We’ve provided customized advisory reports to many clients about the features you’ll gain (and lose!) by choosing one software over another.  The right information at the right time can save you a lot of heartache.

A man in a suit stands in front of a laptop with numerous documents spread out
The right information at the right time will always pay for itself, both in peace of mind and your bottom line

Assuming the Grass is Greener

The grass may appear greener at software demos and sales pitches, but no software is perfect.  You may be trading known drawbacks for unknown issues, and you’ll only know hundreds of hours into your transition.  One client last year needed help QC’ing their move to a new Production Allocation system.  Only the new system was one we knew to be equivalent in performance to their old system!  The issues they faced came down to poor implementation rather than the software itself. A lack of efficient QC tools and built up frustration with customer support drove a costly switch to new software.  The same pitfalls awaited them with their new solution, now with a new learning curve and months of work spent fixing the same issues they had before.

So what could they have done better?

Software implementation beats software selection every time.  Revising the initial setup and cleaning up the implementation may be all it takes to stop the headaches and time sucks that go along with bad data.  You can leverage business intelligence tools to help with data QC and make it easier to surface data busts before they become major problems.  Customer support can be hard to come by everywhere, but your new software is incentivized to impress you with special care and attention during the onboarding process.  Six months down the line, you may find yourself redirected to the same outsourced call center as before…

two road signs indicating opposite directions symbolizing choices or diverging paths ahead
I’m not making much of a case for Rip and Replace, the software sales guys are already doing that

Underestimating Your Existing Tools

When was the last time you called your account rep about the features you thought were lacking?  We’ve seen instances where clients were surprised to learn their current software already had the feature they wished for!  Sometimes an improved implementation of the same software can simplify a key workflow.  I’ve personally seen a client learn about a free update that converted their 32-bit ODBC connection to 64-bit, unlocking data warehousing workarounds we’d assumed were impossible with the legacy system, saving them hundreds of thousands per year.  It may be that you truly need to transition to a more fit-for-purpose software solution, but make sure to be sure before you go through a one-way door.

So, Is there another way? What Does Enhancing a Legacy System Look Like?

Modern business intelligence tools, automation, and low-code applications can breathe new life into your software without requiring a complete overhaul. This approach lets your staff keep the tools they’re familiar with while addressing their shortcomings.  Low code solutions like Power Apps and Power Automate can bridge gaps in legacy software by automating workflows and eliminating manual data entry.  Azure Data Factory never ceases to amaze me by spinning piles of straw data into golden insights, moving data between systems and enabling multidisciplinary insights without having to deploy a fully integrated tech stack from a single provider.  A data warehouse is a great way to combine multiple legacy data sources into a single modern data connection, empowering Spotfire and Power BI users with easy access to a single source of truth without having to deal with API calls or ODBC connections.  Lots can be achieved without ripping-and-replacing!

Suited man observes a cityscape, while a graph in the foreground illustrates data
Could this be any more AI generated?

 

Before embarking on a major disruption to your business, why not drop us a line?

We’ve seen a lot of great and poor decisions with software selection and implementation, and we love talking about this stuff.  What’s your experience?  I’m always down to commiserate and learn and I’d love to hear your implementation horror stories!

Let's discuss it further.

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