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Replatform Today to Save Costs Tomorrow

Exploring opportunity cost and the impact of delayed tech adoption on e-commerce businesses
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A foreword from our partner BRANDUNG

Max Helke, Founder & Managing Director

Delayed replatforming can have significant consequences for businesses, resulting in high maintenance costs and limited integration capabilities. In today's fast-paced and rapidly evolving digital landscape, it is crucial for organizations to stay agile and adapt to changing market demands. Replatforming, or migrating to a new technology platform, can provide numerous benefits such as improved performance, enhanced security, and greater scalability. However, delaying this process can lead to several challenges that can hinder business growth and success. BRANDUNG is a digital agency that specializes in helping companies navigate the challenges of replatforming. We understand the importance of timely and efficient migration to new technology platforms and offer comprehensive solutions to address the issues related to delayed replatforming.

One major consequence of delayed replatforming is the high maintenance costs that accrue over time. Technology platforms become outdated and unsupported as new advancements emerge. The longer an organization sticks with an old platform, the more complex and costly it becomes to maintain and update. Outdated technologies may require custom patches and workarounds to keep them functional, leading to increased development and maintenance efforts. Additionally, outdated platforms are more vulnerable to security breaches, requiring extra resources to combat cyber threats. The financial burden of these ongoing maintenance costs can quickly escalate, adding strain to a company's budget and diverting resources away from more strategic initiatives. BRANDUNG can assist in mitigating high maintenance costs by providing expert analysis of existing systems and identify pain points that contribute to maintenance overhead. By carefully evaluating the organization's needs and future goals, BRANDUNG can recommend suitable technology platforms that offer improved performance, enhanced security, and reduced maintenance requirements.

Another drawback of delayed replatforming is limited integration capabilities. As businesses grow and expand, they often need to integrate their systems, applications, and data to streamline operations and improve efficiency. Legacy platforms may lack the necessary tools and infrastructure to enable seamless integration with other systems, resulting in data silos, manual workarounds, and inefficient processes. By delaying replatforming, organizations hinder their ability to leverage modern integration technologies like APIs, microservices, and cloud-based solutions. This limits their ability to collaborate with partners, adopt new technologies, and respond quickly to changing customer expectations. BRANDUNG recognizes the significance of integration capabilities for companies and offers solutions that enable seamless integration of systems, applications, and data to streamline operations and improve efficiency. By leveraging modern integration technologies such as APIs and microservices, BRANDUNG helps organizations break down data silos and establish efficient workflows. This allows businesses to collaborate with partners, adopt new technologies, and respond more rapidly to customer expectations.

Furthermore, delayed replatforming can impede innovation and hinder the ability of businesses to stay competitive. Newer platforms often offer better performance, scalability, and flexibility, allowing organizations to leverage emerging technologies such as artificial intelligence, machine learning, and blockchain. With outdated platforms, businesses miss out on opportunities to leverage these advancements, losing any competitive advantage. In today's fast-paced digital economy, businesses that fail to adapt and innovate risk being left behind by more agile and tech-savvy competitors.

To mitigate these risks and ensure a smooth transition, organizations should proactively plan and execute replatforming projects. This involves conducting a thorough analysis of current systems, identifying pain points and areas for improvement, and selecting a suitable technology platform based on future business goals. It is essential to allocate sufficient resources and engage experienced professionals who can guide the organization through the replatforming process. By investing in a timely and well-executed replatforming strategy, businesses can minimize maintenance costs, enhance integration capabilities, and position themselves for long-term success in the digital era.

In conclusion, delayed replatforming can have detrimental effects on a business, leading to high maintenance costs and limited integration capabilities. By delaying the migration to a new technology platform, organizations risk accumulating complex and costly maintenance efforts, compromising security, and impeding integration with other systems. Furthermore, delayed replatforming hinders innovation and can make businesses less competitive in the rapidly evolving digital landscape. To mitigate these risks and ensure long-term success, businesses should prioritize replatforming as a strategic initiative, investing in a well-planned and timely transition to modern technology platforms.

PART 01

Postponing your replatforming project? Think again!

Market intelligence institutions across the globe are unanimously reporting increased demand for enhanced e-commerce solutions. According to Gartner, by 2026, organizations that have established mechanisms to reuse composable digital commerce modules will see their speed of digital innovation improve by 60%, relative to 2022.

This further confirms that agile businesses are swiftly shifting towards more adaptable and preemptive solutions. It is clear now, more than ever, that immediate replatforming to a modern system that offers benefits such as composability is imperative. Businesses delaying their replatforming projects risk missing out on growth in the near future.

Modern CEOs are aware that the global surge in e-commerce demand carries with it a list of higher expectations and complex demands that require robust IT infrastructure. Savvy leaders must enable their organization to work smarter and make faster, more significant, or well-placed investments.

If a future-proof solution is already available, take the leap and consider the additional cost of upgrading as an investment. Incur the opportunity cost now and upgrade to a best-of-breed solution that can scale business to new heights. Only the early adopters will emerge stronger against the odds and secure a sustainable future for their e-businesses. Move with the times and keep up with the CEOs of today!

Today’s CEOs want three things: growth, digitalization and efficiency.
– Gartner, Top Strategic Technology Trends for 2022
PART 02

Consider opportunity cost

Opportunity Cost = return on missed opportunity – return on current solution

In the above equation:

Missed opportunity = migrating to a robust Composable Commerce solution
Current solution = average technology infrastructure

Opportunity cost, in this instance, is the difference between the returns you receive from retaining your current solution and the return you would've received from migrating to a future-proof solution.

At first glance, investing in a new technology platform may seem daunting to many decision-makers. However, opportunity cost can be considered as the small price you pay now in order to gain more tomorrow. It serves to remind business leaders to thoroughly research alternative options and new opportunities before “playing it safe” or sticking to what they know.

Many businesses ignore the future risks of their current rigid solutions, which usually suffice until a problem or potential loss arises. In the world of modern commerce, any delays or hesitation to innovate directly correlate to future losses that can be inflicted by unexpected global changes, like war or a pandemic, as already experienced in 2020. Take a moment to consider how much market share established e-commerce stores won over all the physical stores that tried to hustle up last-minute websites during the lockdown period. This scenario was most evident in the hospitality industry, where the slow-movers frantically attempted to build or upgrade their websites while restaurants on established e-commerce platforms were cashing in on all the sales. They also had the capacity and agility to create more enhanced user experiences for their existing and new-found customers.

A survey conducted by Statista in May 2020 saw 31% of U.S. respondents deliberately purchasing restaurant meals and takeaways online instead of offline.

PART 03

The costs of retaining your current solution vs. the benefits of migration

Although making the big switch can be time-consuming and expensive, now is always the ideal time to make that leap into the future.

Delaying action could lead to significant expenses down the road.

Cost of retaining current system Cost of retaining current system
Cost of migrating to Spryker Cost of migrating to Spryker
Cost of retaining current system Loss of market share
Cost of migrating to Spryker Additional investment
Cost of retaining current system Lack of flexibility
Cost of migrating to Spryker Additional labor costs
Cost of retaining current system Slower time to market
Cost of migrating to Spryker
Cost of retaining current system Lost opportunities for growth
Cost of migrating to Spryker
Cost of retaining current system Expensive upgrades
Cost of migrating to Spryker
Cost of retaining current system Developer demotivation
Cost of migrating to Spryker
Benefits of retaining current system Benefits of retaining current system
Benefits of migrating to Spryker Benefits of migrating to Spryker
Benefits of retaining current system No additional investment incurred
Benefits of migrating to Spryker Flexible future-proof solution
Benefits of retaining current system
Benefits of migrating to Spryker Improved developer experience and retention
Benefits of retaining current system
Benefits of migrating to Spryker Competitive advantage
Benefits of retaining current system
Benefits of migrating to Spryker Fast time-to-market
Benefits of retaining current system
Benefits of migrating to Spryker Additional resources for innovation
Benefits of retaining current system
Benefits of migrating to Spryker Superior customer experience
Benefits of retaining current system
Benefits of migrating to Spryker Enhanced products/services
Benefits of retaining current system
Benefits of migrating to Spryker Increased revenue
PART 04

Average tech today will be obsolete tomorrow

If you are not fully convinced to switch to a new and advanced platform, you should be prepared for the missed opportunities that come with delayed adoption of new technology. It’s a fine line between winning and losing in the e-commerce game, and those with the best technology always come out on top.

Ask yourself these questions and consider the potential impact of your missed opportunities:

  • Can you keep up with your competition?
  • How fast can you adapt?
  • What’s your time-to-market strategy?
  • How many projects do you plan to implement in the coming year?
  • How much will it cost you to implement new features in the current commerce system?
  • How satisfied are your employees with your current commerce system?
PART 05

6 opportunities you’ll miss if you don’t upgrade today

Missed opportunity 1: Market share

The loss of industry market share, plus the additional cost for a solution that isn’t versatile, is hard to reverse.

Can you keep up with your competition?
The race for the ultimate transactional experience will never slow down so you can keep up. Your competition will only accelerate even more when they don't see you right behind them or leading the race. They are working tirelessly on swiftly occupying your portion of the market share. If you don’t move at the same pace as your competitors now, the gap will only increase significantly as time passes. Are you already an innovation leader or are your competitors slightly ahead of you?

Missed opportunity 2: Flexibility

A system that does not give you the absolute flexibility you need today will be inadequate for the challenges of tomorrow, and the gap will continue to widen.

How fast can your business adapt?
The digital market is developing faster than ever before. In order to manage the immense pressure to develop solutions for increasingly complex and unique business requirements, time and resources will be of the utmost importance. Solutions that can be implemented quickly without significant financial overheads will become vital. Robust capabilities, processes, and production will be the guiding force toward a strategic move to the next stage of exponential growth. Can you flexibly adapt to new challenges with your existing solution?

The only way for companies to survive is to constantly adapt to new conditions and evolving consumer demands. Fear of digitization is simply a means of ensuring failure, as it’s a fact that customers now want multiple sales channels, including online. ‘Death by inertia’ is not inevitable – all retailers need to do is embrace change, and go digital. – Alexander Graf, Co-CEO of Spryker

Missed opportunity 3: Time to market

The longer you delay, the more costly it becomes to catch up.

What’s your time-to-market strategy?
Regardless of what your initial plans may be, customers of today are looking for more enhanced experiences and you need to align your strategy to these expectations:

  • Click & Collect
  • API & Headless Solutions
  • Live shopping, AI, and visual commerce
  • Compelling deals or promotions
  • Seamless and Self-checkout processes
  • Multiple payment options and plans

Speed is a critical factor. Your e-commerce system must be able to match the pace of your ambitions to grow. How aggressive and innovative do you want to be?

Missed opportunity 4: Growth

The later you switch to a scalable solution, the greater the unused or lost opportunities.

How many projects do you plan to implement in the coming year?
The more diverse projects you plan, the more important it is to have the right technological basis. Implementing a new system costs time that is worth the investment if it allows you to realize bigger and potentially more profitable projects. Does your current system allow you the scalability you are aiming for?

Missed opportunity 5: Seamless updates and innovation

With the unpredictability of modern markets, every new feature is a bet. The more expensive and complex it is to place a single bet, the lower the chances of winning.

How much will it cost you to implement new features in your current commerce system?
Consistent upgrades to match customers' demands will require more capital for digital infrastructure, which can be challenging without the right solution. Agile companies and first-movers, in particular, can initiate these processes with ease using Composable Commerce solutions that enable their enterprises to soar. How much time, money, and developer resources do you need to further develop your existing system, to open up new features, touchpoints, or entire business models? 

The UK is the leading market for quick commerce, with 61% of the 2500 average UK shoppers we surveyed are doing at least some of their grocery shopping online (and are spending just as much as they do offline), and 28% envision they'll be doing most or all of it online in the next two years. 80% of respondents would shop online more often if the user experience were improved. – The Online Grocery Report 2022, U.K. Online Grocery Shopping in 2022 and Beyond

Missed opportunity 6: Developer retention

If a system doesn't meet all of their needs today, dissatisfaction and potential frustration within your tech team will increase over time.

How satisfied are your employees with your current commerce system?
A commerce system is not measured merely in terms of the revenue it generates. As decision-makers, it is essential to conduct internal reviews of your digital infrastructure before making any impactful decisions. If your developers are working on repetitive and tedious upgrades when they’d rather be innovating–it’s time to change. Your tech landscape is also an asset, and the sooner you do something about developer retention, the sooner you will see positive results. Are the developers working with the system satisfied with your current solution? 

You can't predict the future, no business can preempt their customers buying behavior or expectations in the next 12 months for instance. Or what new devices or touchpoints will be available. Digital transformation is not a once-off project, it requires constant innovation. Don't delay the value proposition, aim for small impactful changes or upgrades as you work towards your big changes that may take more time. It won't be cheaper tomorrow. Time is of the absolute essence most important KPI. There’s no incentive to wait. Talent costs, acquisition opportunities, or marketing spend will only increase with time. – Boris Lokschin, Co-CEO of Spryker
PART 06

It’s now or never.

It may seem like a logical decision to delay your replatforming initiative or even to stick with what you know because it's easier and it won't require any additional investments. It also makes sense to follow due diligence criteria before making a major business decision. However, it’s highly likely your vertical is extremely complex and rapidly changing. An agile approach is critical for your business to keep up with industry advancements and remain competitive. 

Digital commerce in Europe and the U.S. is expected to grow by more than 50% by 2024. – Statista

About Spryker

Spryker is the leading global composable commerce platform for enterprises with sophisticated business models to enable growth, innovation, and differentiation. Designed specifically for sophisticated transactional businesses, Spryker’s easy-to-use, headless, API-first model offers a best-of-breed approach that provides businesses the flexibility to adapt, scale, and quickly go to market while facilitating faster time-to-value throughout their digital transformation journey. As a global platform leader for B2B and B2C Enterprise Marketplaces, IoT Commerce, and Unified Commerce, Spryker has empowered 150+ global enterprise customers worldwide and is trusted by brands such as ALDI, Siemens, ZF Friedrichshafen, and Ricoh. Spryker is a privately held technology company headquartered in Berlin and New York backed by world class investors such as TCV, One Peak, Project A, Cherry Ventures, and Maverick Capital. Learn more at spryker.com.

Spryker Website