Selecting Systems 6: Platform or Point Solution?

The sixth part in our series of Selecting Finance Systems for growing organisations. An introduction to the series can be found via this link: https://www.dhirubhai.net/pulse/selecting-finance-systems-support-your-companys-growth-john-fuggles-0x5oe/

Best-in-class systems provide robust features and functionalities that streamline processes, automate repetitive tasks, and improve overall operational efficiency. This allows the finance teams to focus on strategic initiatives rather than getting bogged down by manual, time-consuming activities.

To achieve this there are two schools of thought. One is that a platform solution, sharing a common database and leveraging a ‘single source of the truth’ offers the greatest advantage. The other is that multiple point solutions offer a chance to take the best parts of each and have them work together.

Today the difference in functional capability between a multi-faceted platform solution and a multi-technology solution is marginal at best. Accepted users will have their favourite workflows and look and feel are important characteristics. However, the argument today for point solutions over platform no longer applies in anything other than a solution for a highly specific or very rare case. For most finance functions, a solution that can provide multiple capabilities offers the best features at the lowest total cost and therefore presents the best option.

When taking a platform approach to the needs of the finance function, there are several elements which must be considered:...........

Scalability and adaptability

Growing companies require systems that can scale alongside their expanding operations. Simply removing one system and implementing another is not feasible, even for the most financially robust organisation. Modern business systems offer flexible architectures and modular functionality that adapt to an organisation's changing needs.

All systems have a lifespan, but companies can now choose systems that address today’s challenges, adding layers of functionality as the company grows. This ensures that any organisation can efficiently accommodate increased transaction volumes, global expansions, and ever-changing or newly emerging business models.

Real-time data and analytics

For the modern CFO, the ability to make quick decisions is key. Timely and accurate financial data is crucial for informed decision-making. Advanced business systems offer real-time reporting capabilities, comprehensive analytics, and customisable dashboards that empower finance professionals to gain valuable insights into business performance. These insights enable companies to make data-driven decisions, identify trends, and seize growth opportunities quickly.

Agility is not simple. The ability to share multiple data sources and types of data with multiple user and stakeholder groups can be challenging. Integrating multiple solutions and then extracting required content to various groups can be a challenge that is best overcome with a single platform approach. A platform approach provides a ‘single source of the truth’ that leverages multiple data sources in a way that enables different user communities to gather the information they need for effective decision-making.

Companies that can be agile will always progress faster than those that move slowly.

Improved collaboration and communication

As organisations grow, cross-functional collaboration becomes increasingly important. Modern platform solutions provide integrated platforms for finance, operations, sales, and other departments, facilitating seamless communication and fostering collaboration. This enables faster decision-making, promotes transparency, and drives alignment across the organisation. When teams are siloed problems can occur, decisions can be made that are not consistent across the company and potentially internal conflict can be allowed to develop

Conclusion

VantagePoint has delivered over 200 projects - a mix of point solutions and platform solutions. As an independent business and finance transformation organisation our experience tells us that platform as an approach is preferred over multiple point solutions. However, we also recognise that not every company needs a platform to undertake multiple tasks. Finding a platform that can begin as a single solution and grow and evolve with the company is quite typical among leaders driving financial change.

Advantages of point solutions:

• Quick to implement due to limited scope
• Specific implementation partner expertise

Disadvantages of point solutions:

• Limited scope and flexibility
• Multiple integrations required, complex data-matching
• Slow to move from implementation to integration
• Often limited scalability
• Multiple point solutions require multiple contracts and suppliers to be managed
• Managing the relationship between suppliers, particularly when there are issues, can be complex.

Advantages of a platform approach:

• Often tailored for specific industry requirements
• Fully integrated elements as standard
• Greater opportunity to scale as companies grow
• Staged implementation by module can be quick
• Increased transparency and communication between departments
• Commonality of user interface and experience

Disadvantages of a platform approach:

• Cost model may not suit every customer
• Wider commitment from the business to adopt this approach (is that a disadvantage?).

Selecting Systems for Growth 6/14

• overview - https://www.dhirubhai.net/pulse/selecting-finance-systems-support-your-companys-growth-john-fuggles-0x5oe/
• part 1 - https://www.dhirubhai.net/pulse/selecting-systems-1-stakeholder-buy-in-john-fuggles-63w1e/
• part 2 - https://www.dhirubhai.net/pulse/selecting-systems-2-considering-people-john-fuggles-ign6e/
• part 3 - https://www.dhirubhai.net/pulse/selecting-systems-3-training-enablement-john-fuggles-w6rbc/
• part 4 - https://www.dhirubhai.net/pulse/selecting-systems-4-impact-business-usual-john-fuggles-b5yoe/
• part 5 - https://www.dhirubhai.net/pulse/selecting-systems-5-process-alignment-john-fuggles-zm8he