September 17, 2020

6 pervasive myths about lease management systems


To many people, a lease management system is very abstract, and it can seem overwhelming to have to deal with what it means to replace the excel sheet with new and intelligent software. Is it not too expensive? Is it not too complex? Will it be worth it at all?

Written by Jan Johannes Kyhnæb
Leasing
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We have encountered several prejudices or myths about lease management systems that we believe are caused by a general lack of knowledge. The purpose of this blog post is to demystify the lease management system. We have gathered an overview of the 6 myths we most frequently are faced with when talking about lease management systems with our customers.

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

 

1. It is expensive to acquire a new leasing system

There is a widespread perception that replacing IT systems is expensive, especially among companies that work with older systems that are already paid for. They will often believe that a replacement will bring new and more significant operating costs.

Microsoft's new agenda completely removes the massive investments in the solution itself - fx lease management systems. They have converted the payment into an ongoing subscription, which you pay for according to your use.

Of course, a new lease management system means that you have to spend money to pay your supplier. But you can easily make a financially good deal where you do not have to pay a hefty amount up-front. Besides that, there is, in the long run, definitely a financial gain by replacing the old system. It can be costly to work in an outdated lease management system or in no system.

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

Implementing a modern lease management system comes the possibility of automating inefficient, manual processes, which means that valuable manpower is released. The time your employees have 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 you must 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 lease management system has consequences for your organization's transparency - and lack of transparency can 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 lease management system, you get a solution integrated with your existing business systems. This way, you can quickly get an overview of processes, agreements, and customers.

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

 

2. It is difficult to integrate a lease management system into existing business systems

Integration between different IT systems has always been interesting and relevant but complicated and costly. The great attention it has received over the years means that more convenient methods have been developed to create integration - which several stakeholders can often recycle. 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 lease management system that cannot integrate with your other business systems, you should strongly consider choosing another solution. The purpose of a new and modern lease management system is that collecting data and integrating it with other systems can ease your employees' workload. Therefore, the solution must be integrated with the existing systems 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 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 lease management system

Not necessarily. What is crucial is your employees' motivation 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 are happy when the management announces that a new IT system is on the way. Everyday life is turned upside down, and many can get the feeling of losing momentum or being set back to square one. Significantly few people enjoy 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 lease management 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 lease management system, and it is crucial that you communicate this to your employees. If your employees see the purpose of replacing your outdated lease management system, they will naturally be more curious about it and want to get to know it better and faster. Intuitive and user-friendly systems, with lots of nudging and help to remember, are a considerable advantage in both situations. They allow 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 lease management 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 lease management system

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

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

However, this is not necessarily the case. Because while it may be tempting to choose the first and best lease management system and get it implemented in a hurry, it is far from the best solution in the long run. Some companies experience implementing IT systems that lack fundamental functions that enable the system 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 clarify your needs and research which solutions can meet them. Once you have decided which solution you want to proceed with, you should think the implementation phase through and allocate 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 lease management system, but it will pay for itself after the implementation.

With a good 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 select a partner who has the skills in-house, you will often find that a consultant or developer is available and who will follow the development close. 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 lease management system solves very complex tasks and controls a great deal of data from 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 must ensure that a new lease management system can take over the rest of the leasing agreement's duration 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 lease management 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 lease management 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.

 

Author Jan Johannes Kyhnæb

Jan Kyhnæb has +35 years of experience and is an expert within Microsoft D365 BC, on which our industry solutions, 52LEASING and 52SUBSCRIPTION are based on. He helps a number of leasing and subscription companies to optimize their business processes on a daily basis. Contact Jan if you have any questions | Jan Johannes Kyhnæb, Business Development Manager, D365 | +45 24 42 92 76 | jjk@fiftytwo.com

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