Jan Johannes Kyhnæb

6 pervasive myths about leasing systems

For many people, a leasing system is very abstract, and it can seem overwhelming to have to deal with what it exactly means to replace the excel sheet with new and smart software. Isn't it too expensive? Isn’t it too complex? Will it pay-off at all?

A general lack of knowledge about leasing systems has spawned several prejudices or myths we have encountered in several places. The purpose of this blog post is therefore to demystify the leasing system. We have gathered an overview of the 6 myths we are often faced with when talking about leasing systems with our customers.

  1. It is expensive to get a new leasing system
  2. It is difficult to integrate a leasing system into existing business systems
  3. It is difficult to become familiar with a new leasing system
  4. It takes a long time to implement a new leasing system
  5. It requires many resources to get a new leasing system
  6. Changing your leasing system is complex


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1. It is expensive to get a new leasing system

There is a widespread perception that it is expensive to replace IT systems - especially among companies that work with older and already paid systems. They will often believe that a replacement will bring new and more significant operating costs.

Microsoft has set a new agenda that completely removes the massive investments in the solution itself, such as leasing systems, and has converted it into an ongoing subscription, which you pay according to consumption.

Of course, a new leasing system means that you have to get money out of pocket to pay your supplier, but you can easily make a financially sensible deal where you do not have to pay a large amount up-front. Besides that, there is, in the long run, definitely a financial gain by replacing the old system. It can cost you a lot to work in an outdated leasing system or to have nothing at all.

Everyone who has worked with leasing has experienced how much administrative work lies behind. Older and inflexible systems that do not work together are often to blame for employees having to spend precious time on manual processes and cumbersome workflows.

With the implementation of a modern leasing system comes the possibility of automating the inefficient, manual processes, which means that valuable labor is released. The time your employees have previously spent on manual tasks with contracts, documents, and other data could be spent selling to new and existing customers.

 

The leasing industry is developing rapidly, and the competition is steadily increasing. Therefore it is essential that you follow the development. Otherwise, you take the risk of your competitor selling to your potential customers, while your employees spend time tinkering with contracts and other documents.

An outdated leasing system has consequences for your organization's transparency - and lack of transparency be expensive. When different systems do not work together, it forces employees to work in silos where they can neither share knowledge nor help each other across the organization. With a modern leasing system, you get a solution that is integrated with your existing business systems. This way, you can quickly get an overview of processes, agreements, and customers.

With the above in mind, it is certainly worth considering whether implementing a new and modern leasing system will not be a valuable move in terms of your ability to be competitive and create economic growth.

 

2. It is challenging to integrate a leasing system into existing business systems

Integration between different IT systems has always been interesting and relevant, but also complicated and costly. The great attention it has received over the years means that more convenient methods have been developed to create integration - which can often be recycled by several stakeholders. This causes the value of systems and the ROI one can achieve increases significantly, just as it contributes to the daily efficiency and automation of processes.

Therefore, if you are introduced to a leasing system that cannot be integrated with your other business systems, you should strongly consider choosing another solution. The purpose of a new and modern leasing system is that by collecting data and integrating with other systems, it can ease your employees' workload. Therefore, it is crucial that the solution can be integrated with the systems that already exist in your business and seamlessly exchange data across them.

The integration with other systems has been a high-priority function in the development of 52LEASING. 52LEASING is based on the latest Microsoft Dynamics 365 technology and can be built on top of an existing NAV / Business Central solution. The solution can be integrated with other ERP systems and a wide range of third-party systems. The purpose of the many integration options is to break down silos, create transparency, and support the business processes with online and dynamic updating across all systems. You can read more here about which solutions 52LEASING can integrate with.

 

 

3. It is challenging to become familiar with a new leasing system 

Not necessarily. What is crucial is your employees' motivation to get to know a new system. Do they see the value it can bring your business? Do they understand why the system is essential for your ability to remain competitive?

Of course, very few people rejoice when the management announces that a new IT system is on the way. Every day as we know it is turned upside down, and many can get the feeling of losing momentum or being beaten back to the start. Significantly few likes change, and most are frightened by them. As humans, we are programmed to resist changes. As a result, the natural response to a change is to reject it.

Therefore, the reaction to a new leasing system among your employees will often be a rejection with the argument that "it is too difficult to learn," and it is "a waste of time to implement". Especially now where "the old system works". You know why it is not a waste of time or resources to implement a new leasing system, and it is essential that you convey this to your employees. It matters to how easy they get to know your new leasing system. If your employees see the purpose of replacing your outdated leasing system, then they will naturally be more curious about the system and want to get to know it better and faster. Intuitive and user-friendly systems, with lots of nudging and memory help, are a considerable advantage in both situations. They help for a much faster and more fun implementation and a much shorter and steeper learning curve for new colleagues.

Once you have decided to implement a new leasing system, it is relevant to investigate who can provide you with an intuitive and user-friendly system while being clear, to your employees, about the many benefits they will experience with a new system.

Old systems always work best when you know they need to be replaced by new ones!

 

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4. It takes a long time to implement a new leasing system

It may take time to implement a new leasing system, but it is also essential for the end result that the process is not rushed. In other words: it should preferably take time to implement a new leasing system.

If you have decided that it is time to replace your old leasing system with a new and modern one, it is natural that you want to get started as soon as possible. The thought is often: The sooner I get started and get the implementation completed, the sooner I can enjoy all the benefits a new leasing system brings.

However, this is not necessarily the case. Because while it may be tempting to choose the first and best leasing system and get it implemented in a hurry, it is far from the best solution in the long run. Some companies experience that they implement IT systems that either lack fundamental functions that enable it to function optimally in everyday life. Or that they have implemented an overly complicated IT system with features they will never need. If so, it can be too confusing and challenging for you and your employees to get started, and you will probably find that you have spent time and resources on something that will never benefit your business.

Therefore, it is crucial that you first clarify what your needs are, and then do thorough research on which solutions can meet these needs. Once you have decided which solution you want to proceed with, you should think the implementation phase through and set aside the necessary time for the implementation phase to run as smoothly as possible. It always takes time to learn new things, and therefore a well-thought-out implementation method, with proven training courses, is necessary to optimize the course.

Today, there are excellent and effective implementation models, which means effective implementation processes, where it is primarily the organization's availability that sets the pace. By spending the necessary time on research and implementation, you will be rewarded with a system that can save you much time in the future.

 

5. It requires many resources to get a new leasing system

Of course, it will require resources and an effort to implement and become familiar with a new leasing system, but it will pay for itself after implementation.

With a sound and well-planned implementation project, it is possible to plan the distribution and draw on resources to minimize the impact on everyday life. You get to "go live" on a new and more efficient system as soon as possible.

The key is to choose the right partner. If you make sure to enter with a partner who has the competencies in-house, you will often find that a consultant or developer is available who will be close to the development throughout. Once the development is complete, developers will be ready to support and remedy your challenges as they arise. Of course, you must spend time and resources training your employees in a new system, but as we have said before, we believe that it is a sensible investment in terms of the time and resources you can save in the long run.

 

6. It requires many resources to get a new leasing system

A leasing system solves very complex tasks and controls a great deal of data from the course of all leasing agreements. Therefore, changing the system can seem very confusing - How do we ensure that everything is included and that we can continue everyday life without problems?

The big hurdle is the conversion of the active agreements, which will ensure that a new leasing system can take over the task for the rest of the lease term so that your customers do not experience any change other than you may start offering new options and services.

Therefore, a useful and proven import function in the new leasing system is crucial because you can quickly get "peace of mind" about moving your active agreements and instead concentrate on all the new exciting functions in a new leasing system.

Are you thinking of replacing your leasing system? Please read our blog post where we come up with 5 tips on what to look for when choosing your future leasing system.

 

Do you want to know more about 52LEASING?

Want a personal walkthrough of 52LEASING? I will take you through the key elements of the solution and demonstrate how it can optimize your business.

 

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Jan Johannes Kyhnæb 

Business Development Manager, D365

+45 24 42 92 76 | jjk@fiftytwo.com