The economic conditions in the years following the COVID-19 pandemic offered many organizations access to incremental capital and additional funding, which led them to increase their spending on software to enable remote work and increase digital transformation.
The rapid adoption of specialized software left many organizations with an overcrowded and disconnected technology stack, however, negatively impacting their productivity and efficiency. Now many organizations are consolidating their tech stacks to manage software sprawl and curb inefficiencies.
At a high level, it may seem like a simple fix – get rid of the software you aren’t using. But there’s more to consider. When looking to consolidate technology, organizations need to understand how each piece of technology fits into workflows and processes and what the implication would be if it were removed. This is where process becomes key, and where MSPs can serve as trusted partners for organizations navigating software consolidation.
The pains of software sprawl
According to Canva’s 2024 CIO report, 72% of CIOs are concerned about application sprawl, and 64% say they don’t have the resources to train employees on new technologies. Their concerns stem from the far-reaching impacts of software sprawl, which often manifests itself in a breakdown in workflow and process. Because teams are using a wide range of different and disconnected tools, data can become siloed, making it harder to share insights across departments. This disconnect can lead to workflows taking longer or being completely disrupted.
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Another key concern is shadow IT, where unauthorized tools are used without proper oversight. Emerging technologies, like AI, are only exasperating the challenges of shadow IT as more employees opt to use generative AI daily. The lack of governance that comes with shadow IT introduces security vulnerabilities, like the risk of breaches and data loss.
Additionally, the costs associated with the licensing, maintenance, and integration of software can spiral out of control, especially when the technology is underutilized. A 2024 report found that, on average, organizations use only half of their SaaS licenses, leading to significant financial losses – £18 million for mid-sized companies and £2 million for small companies.
That brings us back to consolidation. Many small and mid-sized businesses feel overwhelmed by software sprawl and are unsure of the best path forward. Enter MSPs.
The opportunity for MSPs
Software consolidation involves more than simply cutting technologies from a stack. After consolidating, businesses must assess how the remaining technologies work within existing processes. This presents an opportunity for MSPs to help businesses ensure that their technology is helping work flow efficiently throughout the business.
MSPs should begin by focusing on what powers businesses: people, and how processes can bring people, technology, and data together to remove friction and enable people to do their best work. This happens by identifying a new platform or expanding the use of an existing platform that can serve as a centralized hub for a business's workflows.
Embracing end-to-end process automation
Many organizations find themselves in their current predicament because they solved specific business challenges with point solutions. HR adopted a new piece of software to process applicants, for example, or finance bought a new tool to process invoices, and so on.
As a result, organizations were left with sprawling point solutions instead of leveraging applications that can automate processes across departments in a repeatable manner.
End-to-end process automation delivers the visibility and connectivity needed to blend process management, workflow automation, and application development into a single platform so that processes can be optimized at-scale. Here’s how:
- Process management identifies touchpoints with software and illustrates how work moves through and between systems. By mapping out processes, MSPs can highlight inefficiencies and determine which tools are essential for productivity. For example, a financial services organization that processes loan applications can leverage process management to see how an applicant moves through the organization and identify where they may be getting stuck.
- Workflow automation helps organizations get more ROI from their software by automating how data moves through the stack and eliminating any peripheral tools that complicate operations. This unification not only enhances collaboration among teams but also maximizes the potential of existing software investments. For example, the same financial services organization can leverage workflow automation to optimize many customer-facing steps, like application forms, approvals routing, and more.
- Application development allows organizations to present data from across systems and resources, providing a comprehensive view of operations and facilitating informed decision-making. These applications present data in user-friendly formats to increase adoption among users and easily scale across organizations. For example, once the financial service organization has automated its loan process workflows, it can use a low-code application development environment to create a single application for users to apply for numerous loan types instead of separate systems.
Creating functional, automated processes not only unites people and technology but also identifies the most critical technology needed to drive business outcomes. A significant driver of technology consolidation is the strain excessive software places on IT teams. Low-code process automation platforms reduce the need for dedicated IT resources by enabling non-technical users across departments to automate their processes and connect technology across the organization.
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As UK businesses seek to drive efficiency and manage software sprawl, MSPs are uniquely positioned to assist. By applying automation and refining processes, MSPs can help businesses optimize their consolidated tech stacks, integrating disparate systems and automating workflows to unlock greater operational efficiency. In this way, automation empowers MSPs to navigate the complexities of modern IT environments while driving sustained business success for themselves and their clients.
