While it might seem logical to delay major technology investments to conserve budget when the road ahead looks challenging, sometimes the reverse is true.
When facing significant economic headwinds, organisations need to make tough trade-offs. With the stress of a downturn, budgets are often limited and yet pressure to deliver remains high. While some may view delaying major technology investments as a sensible course of action, postponing necessary upgrades to critical systems creates a cascade of issues, from compounding inefficiencies to escalating risks and higher long-term costs.
Instead, challenging times can present a compelling opportunity. Taking a strategic approach to these upgrades allows organisations to address inefficiencies that are in great demand, potentially with the side benefit of reduced risk and improved integration of technology with their overall strategy. The question is not whether to invest, but how to do it efficiently and effectively.
Despite the recent economic conditions, we’ve observed a notable rise in organisations turning to seasoned specialists for guidance on core system projects. These experts bring not only the technical know-how, but also the benefit of having navigated similar projects across industries. Their insights help organisations stay on track, avoid potential missteps and deliver outcomes more efficiently – all critical advantages in highly competitive industries.
The risks – and rewards – of core systems projects
Core system projects have a reputation for complexity, and with good reason. They require careful planning, robust governance and precise execution. When times are tough, resources are stretched even thinner, and these challenges are magnified. Yet the risks of inaction are equally significant. Outdated systems can hinder productivity, expose businesses to compliance risks and make it harder to adapt to changing market conditions.
One area that stands out recently is workforce management systems, such as Human Resources Information Systems (HRIS) and Human Capital Management (HCM) and payroll systems. In particular, complex workforce structures – particularly where factors such as enterprise bargaining agreements, varied overtime rules and unionised environments exist – make these systems both critical and challenging to manage.
When you consider that mistakes in payroll can lead to significant staff impacts, compliance breaches, reputational harm, financial penalties and legal consequences, it’s no wonder that some organisations are prioritising these upgrades despite tight budgets.
Beyond payroll, we’ve also seen significant recent focus on core platforms such as CRMs, ERPs and supply chain systems. As these systems form the backbone of critical operational workflows, upgrading them is often necessary to improve efficiency and ensure resilience in the face of a challenging operating environment.
Phased delivery and the role of external expertise
We’ve also observed that core system projects are increasingly moving away from the traditional “big bang” approach to implementation. High-risk, all-at-once rollouts are being replaced by phased delivery models, breaking projects into smaller, manageable stages. This strategy enables organisations to meet short-term objectives, reduce expenses and mitigate risks, all without sacrificing long-term flexibility.
The success of this phased, time-boxed approach often relies on the expertise of external specialists. These professionals are uniquely positioned to step in and navigate the complexities of core platform projects, and deliver some “quick wins” for the project in the required time frame.
Foundational phases such as defining scope, conducting market scans and shortlisting vendors – tasks that might take internal teams months to complete – can often be managed by experienced specialists in just weeks. By working in a time-boxed manner, a team of core platform specialists will not only accelerate timelines but also approach projects in smaller, more digestible steps, making it easier for organisations to manage budgets and focus on specific priorities.
In contrast, internal resources who are called on to manage core platform projects without the required deep subject matter and technical expertise are likely to struggle with extended timelines or inefficiencies as they adapt to unfamiliar challenges – no matter how capable they are in the context of their day job.
What’s more, relying on internal teams to lead these projects can introduce hidden costs that are often overlooked. For example, if you choose the wrong technology due to limited insights or rushed decision-making, the best you can hope for is being stuck with a mediocre system for the foreseeable future – one that returns little benefits and spawns an ecosystem of spreadsheets and workarounds.
At worst, these decisions can derail an entire project, resulting in failed implementations, wasted resources and costly backtracking. We’ve seen this firsthand when called in to help clients recover from the fallout of overlooked expert recommendations – problems that could have been avoided with the right approach from the outset.
The hidden costs of standing still
When times are tough, delaying core system upgrade for another year might seem like a way to trim capital expenditure. However, with every delay, the risks further outweigh the short-term savings. Neglected systems don’t just erode operational integrity – they also leave organisations vulnerable to compliance failures and make it harder to adapt to changing demands.
Phased delivery models, supported by external expertise, offer a practical way to navigate these challenges. When the cost of standing still is too high, the way forward lies in taking measured, decisive action to secure both immediate and future benefits.
To find out more about how Quay Consulting can help your team undertake a project portfolio review, please contact us here or call 1300 841 048 to talk to the team.