The Power of 'Why': Navigating the Complexities of a Commerce Replatform

Replatforming can be complex and challenging, but understanding the "why" behind it is the first step to a successful replatform. The reasons for replatforming can vary based on your role, company, and culture, but the underlying goal is usually to drive technology adoption and usage within your organization.

Some commerce platforms simply fail, leading to significant costs, time losses, and even an erosion of trust within your organization. Unfortunately, replatforming often exceeds initial time and budget estimates. It can be exhausting and frustrating, and the expected return on investment (ROI) can be hard to track. However, replatforming also offers exciting opportunities to explore new platforms, partners, and technologies, making the journey worthwhile.

Focus on Three Key Replatforming Components

Embarking on a replatforming initiative requires careful planning and execution. First, set a strong foundation and align the project with strategic objectives, to avoid unmet expectations and potential failures. Next, identify key issues and select a partner with the right expertise and track record. Finally, meticulous planning, coordination, and continuous monitoring ensure a smooth implementation to realize the ROI of your replatform.

1. Know the "Why: Understanding the reasons behind the replatforming initiative helps avoid unmet expectations, time and budget overruns, and potential failure. A clear "why" empowers your company and sets a strong foundation for the journey ahead. This step is paramount for aligning the project with your strategic objectives and ensuring that everyone involved understands the purpose and goals of the replatforming effort.
2. Define Problems and Choose the Right Partner: Clearly define the problems you aim to solve and select the right partner to help you achieve your goals. This step involves thorough research and evaluation of potential partners, considering their expertise, track record, and ability to meet your specific needs. Using a vendor scorecard is instrumental in helping you weed out partners that do not fit your requirements. Finding and collaborating with the right partner can significantly enhance the chances of a successful replatforming project.
3. Implement Successfully: Effective implementation of the new platform is key to realizing the benefits of replatforming. This involves meticulous planning, coordination, and execution. Stay curious and humble, learn from mistakes, and subsequent projects will be less risky. Continuous monitoring and evaluation during the implementation phase can help promptly identify and address any issues, ensuring a smooth transition to the new platform.

Signs You May Need a Replatform

• Old Technology: Legacy systems can hinder seamless omnichannel commerce, cross-selling, and other modern retail expectations. Upgrading outdated systems can justify the ROI by enabling the company to achieve its strategic goals. Modern technology solutions offer enhanced capabilities, improved performance, and better integration with other systems, making them essential for staying competitive in today's fast-paced business environment. McKinsey found that replatforming can reduce time to market by 25-30% and allow businesses to be more agile and responsive to market trends.
• Loss of Functionality: When old technology fails or requires costly upgrades, it presents an opportunity to overhaul the entire process. If maintaining outdated systems consumes more resources than innovating, it's time for a replacement. Replatforming allows you to leverage the latest technologies, streamline operations, and improve efficiency and performance by up to 50% by shifting to cloud-based platforms.
• Loss of Experience: Replatforming should improve employee and customer experiences by making processes faster and more straightforward. Eighty percent of customers think the experience a company provides is just as important as their products and services and 57% of employees feel restrained by legacy technology. Prioritizing technology enhancements should focus on what employees and customers are demanding. A user-friendly and efficient platform can boost employee productivity, reduce manual tasks, and enhance customer satisfaction by providing a seamless and personalized experience.
• Consolidation: Standardizing systems across multiple brands can address inefficiencies and make a new, consolidated platform the most effective solution. Consolidation can lead to a cost saving between 20-25%, improved data management, and better collaboration across different departments and teams. It also simplifies maintenance and support needs across your IT operations.
• Modernization: Modern technology offers compelling benefits, but proper change management is essential. Cloud-based flexibility, aligned with business outcomes, can enable an agile future. Companies that replatform to a modern, cloud-based solution can save up to 30% on infrastructure costs. Address skepticism by focusing on solving specific problems rather than adopting technology for its own sake. Modernization efforts should be driven by a clear understanding of the business needs and objectives, ensuring that the new platform aligns with the overall strategy and delivers tangible benefits.

Stay Focused on the Why

Always return to the "why" for your replatforming initiative. With a clear focus, you set your team up for success and drive technology adoption and usage within your organization. By staying informed about the latest technology trends, navigating organizational politics, and balancing day-to-day tasks with exploring new technologies, you can influence technology decision-making processes and contribute to efficient workflows and improved systems.

In addition to the technical aspects, consider the human element of replatforming. Engage with your IT team, share knowledge and expertise, and foster a culture of innovation and continuous learning. Encourage team members to participate in industry forums, webinars, and conferences to stay updated on emerging technologies and best practices. By enhancing technical skills and knowledge, you can build a more resilient and adaptable team capable of driving successful replatforming projects.

Measure to Manage

Finally, measure the success of your replatforming efforts using key performance indicators (KPIs) and metrics such as the adoption rate of new technology solutions, the tech team's engagement and participation in innovation initiatives, and contributions to developing efficient workflows or improved systems. Regularly review and analyze these metrics to identify areas for improvement and ensure that your replatforming initiatives are delivering the desired outcomes.

Replatforming is a journey. Stay curious and humble, learn from mistakes, and subsequent programs will be less risky. Set focus and a clear understanding of the "why," you are setting your team up for success and driving technology adoption, change management, and usage within your organization. For supplemental information on selecting commerce platforms that will help your business with a successful replatform, read our blog, “Choosing the Right Commerce Platform”.