5 Reasons Why New Software Setups Fail
In the world of travel software implementation, success rates are as unpredictable as a coin toss. While exact figures may vary across reports and industries, one constant remains—the odds are not in your favor. This post explores why new software setups fail and provides tips to help you avoid common issues.
According to Boston Consulting Group, a staggering 70% of digital transformation efforts fail to achieve their targets and the Standish Group’s 2020 CHAOS report echoes this sentiment, estimating that approximately 66% of software projects fail. While in 2016, Forbes assessed the risk of failure in digital transformation to be 84%. According to McKinsey, BCG, KPMG and Bain & Company, the risk of failure falls somewhere between 70% and 95%.
These statistics are alarming, especially considering the pivotal role IT and software solutions play in our modern travel business. However, hope lies in understanding the root causes of these failures and embedding risk mitigation into the planning process. Let’s explore why so many software setups stumble and how we can shift this narrative.
Poor Planning and Lack of Clear Goals
One of the main causes of software implementation failure is inadequate planning. By not having a well-defined plan, businesses set themselves up for failure from the start. Without clear goals and objectives, it’s impossible to measure success or identify potential roadblocks. This lack of direction can lead to wasted resources, delays, and ultimately, project failure.
Alongside poor planning is slow decision-making processes. When your managers don’t have any sense of urgency because you didn’t bother with the delay cost calculations. According to Forbes, failure to make timely decisions is a major contributor to the high failure rate of digital transformation projects. In order for a software setup to be successful, decision-makers must have clear timelines and be willing to make quick, informed decisions in a rapidly changing environment.
What you can do:
- Validate software is the right fit, support the businesses bottom line, and avoid shiny object syndrome.
- Create a detailed plan that includes specific milestones and timelines as well as a contingency plan for potential setbacks.
- Assign decision maker who will be using the software daily to oversee the approval process
- Regular check-ins and progress reviews are also crucial for staying on track and making adjustments as needed.
Unrealistic Expectations
A primary culprit behind project failure is the mismatch between client expectations and reality. It’s challenging to envision the impact of a software solution you’ve never used before. Many business owners anticipate a new software will solve all their problems or automate every process seamlessly, which simply isn’t realistic.
Adding to the challenge, clients often lack understanding of the deployment process, timelines, and integration requirements within their existing digital landscape. This leads to demands for rapid, low-cost, and high-quality implementations—an unrealistic trifecta.
Decision-making often rests with individuals disconnected from the software’s intended role, resulting in unmet expectations. The key here is setting realistic timelines and budgets. Complex projects require substantial time, collaboration, and meticulous planning. Engaging all relevant stakeholders, including internal teams and external consultants, is essential for aligning visions and realities.
What you can do:
- hire a software consultant who has planned these kinds of software and process changes before
- spend time asking your team what they need vs want the new software to do
- spend time understanding the softwares limitations
- do a process audit and create a process map PRIOR to the change to understand how the software will fit in your current processes
- schedule regular meetings to ensure clear communication and expectations throughout the implementation process
Lack of Technical Documentation
Another factor contributing to software adoption failures is the absence of comprehensive documentation about how to use the new software. Without it, teams struggle to follow consistent standards and effectively transition to new workflows. It may also mean endless training sessions and reduced productivity.
Standard Operating Procedures (SOPs) are vital as they guide training and enable team members to operate independently within the new system. Crafting detailed manuals, complete with written instructions and videos, ensures diverse learning styles are accommodated.
What you can do:
- assign a team member to work with the consultant or software provider to document how every task will get done inside the new software
- hire an external consultant to create SOPs for you
- create a culture of documentation creation and updating in your business
- make time to ensure documentation is reviewed by the team regularly
Resistance to Change
Change, despite its theoretical appeal, faces resistance from all corners. Organizations often cling to legacy systems and processes out of fear and uncertainty. Initial excitement wanes as challenges arise, making it difficult for individuals to relinquish familiar practices.
Many businesses remain entrenched in outdated internal processes, making it a challenge to adapt to modern workflows. This is why documentation and training are pivotal components of the software setup process.
Addressing resistance to change necessitates a cultural shift within the organization. Without fostering the right culture, securing buy-in becomes problematic, especially among frontline employees and middle managers tasked with spearheading change management initiatives. It’s imperative that every individual, regardless of hierarchy, comprehends the rationale behind the change and assumes responsibility for their role in realizing organizational goals.
What you can do:
- ensure the whole team is aware of why the software change is necessary and how it will help them long term
- ensure leaders lead through not reverting to old ways or downtalking the change, they should lead by example and use the software like a poweruser
- having your process map updated and SOPs in place prior to brining in the rest of the team will help alleviate the fear and uncertainty
Forgetting About the Customer’s Learning Curve
Customer-centricity is a critical factor in successful adoption, yet many software companies fall short in providing adequate onboarding and training support. Most companies provide a decent ‘knowledge base’ that you can find common or basic setup information in – if you know what to look for!
Ideally, software providers should offer a structured setup process and at least a few hours of training. Additional packages for further support should be available for purchase, ensuring users have the resources needed to thrive.
What you can do:
- research potential software providers and ask about their onboarding and training programs before making a decision
- ask for references from other businesses who have successfully implemented the same software
- allocate time for training during business hours so employees can fully engage without worrying about workload or after-hours commitments
Final Thoughts
The myriad reasons contributing to travel software project failures ultimately trace back to a common denominator—inadequate planning. By acknowledging these pitfalls and addressing them proactively, organizations can improve their odds of success in navigating the complex landscape of new software implementation.
For those embarking on a new software setup, I urge you to prioritize thorough planning. Engage all stakeholders, invest in comprehensive documentation, and foster an adaptive culture. By doing so, you set the stage for a smoother, more successful digital transformation. Let’s rewrite the narrative of software failures and pave the way for a future where technology integration propels businesses toward unprecedented heights.
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