Europe’s Business Software Scrapheap

Software Scrapheap

Europe’s mid-market sized businesses waste a whopping €6.6 billion Euros worth of technology investment every year on business software that they don’t fully use. That’s according to research looking into the effectiveness of IT investments across Europe. The findings of the study show that 88 per cent of firms fail to completely utilise their investments in business software.

Wake-Up To Better Utilisation

This is a huge wake-up call to EU businesses. Used correctly, business software can help drive growth. But at the moment, many of the solutions that businesses in Europe are investing in do not adequately meet the business need.

The underlying causes for this waste vary between countries. In Germany for instance, 35 per cent of respondents blame duplication with other software, while just over a quarter of UK respondents put under-use down to a lack of customer demand. The most common reasons given were lack of business need for all features with 36 per cent and dearth of user training at 25 per cent.

I firmly believe the reason for this is that decision makers aren’t listening to their users enough – they try to find one-size-fits-all solutions instead of bespoke, user-centric products. We really need to think about users’ needs and also understand how employees will make the best use of the organisation’s investment.

Route To Business Growth?

What’s clear is that business efficiency is the key challenge that needs to be addressed by software. In the study, 63 per cent of respondents cited efficiency as the core driver behind their investments. It also found ease of use orientated features such as functionality, accessibility and ease of deployment are areas of great concern for European companies.

Decision makers aren’t listening to their users enough and are being overly ambitious, meaning they are trying to find one-size-fits-all solutions instead of bespoke, user-centric products. Mid-market businesses need to think user-centric, and understand how employees will make the best use of the organisation’s investment.

Companies need to consider how consumer trends are affecting their users and customers business requirements. If business efficiency is their goal, they need solutions that have mobility and accessibility built into their core. Solutions should be as useful tomorrow as they are today.

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Benoit Gruber

Benoît Gruber joined Sage in 2008 and is the VP of Product & Alliances for Sage ERP X3. He is responsible for Product Management & Marketing for Sage ERP X3 globally, and is in charge of ensuring that the Operating Company (OpCo) teams are aligned behind the product strategy. He also serves as the Sage ERP X3 solution expert in relationships with thought leaders, analysts and press. Prior to working at Sage, Benoît worked for management consulting and technology services companies dedicated to ERP, Business Intelligence and new technologies. Benoît has also owned a company in Media and Publishing.