Sidu Ponnappa
Sep 18, 2024
Faster implementations are the Hero USP for AI-based tooling, not cost savings.
Why? To answer that, you need to understand the business context in which these implementations are happening — especially from the end customer's perspective.
If you're a business leader who's invested in a new software system, what's going to make a bigger difference to your day-to-day operations:
Getting that system up and running a month sooner, or shaving 10% off the project budget?
In most cases, it's the former.
Every day that a new system isn't in production is a day that the business isn't realizing the benefits of that system. It's the opportunity cost. Also, in many organizations, the budgets for these kinds of projects are often fixed or at least heavily negotiated upfront. There might be some wiggle room for cost overruns, but in general, the financial parameters are set early on.
The timeline, on the other hand, is often more fluid and more visible to a wider range of stakeholders. If a project comes in on budget but a month late, that might be a win for the CFO, but it's a loss for the end users and business owners who were counting on that new system. On the flip side, if a project comes in on time but 10% over budget, those same stakeholders might be more than happy to absorb that extra cost, because they're already reaping the benefits of the new system.
And then there's the risk.
The longer an implementation takes, the more chances there are for something to go wrong — for requirements to change, for scope to creep in, for moods to change, etc. The faster you can get to a working system, the faster you can start getting feedback and iterating.
So in a very real sense, time is money.
Now, I'm not saying cost doesn't matter at all. Of course, all else being equal, a cheaper project is better than a more expensive one. But in the grand scheme of things, the ROI of a well-designed, rapidly deployed system will often dwarf any incremental savings from extended development cycles.
There's also a psychological dimension to this. Seeing tangible progress and results is incredibly motivating. Every milestone achieved and every feature shipped is a sign that their investment is paying off. Conversely, every delay, every setback, every budget overrun erodes confidence and buy-in. And the longer an implementation drags on, the more it can sap your team's time, energy, and morale.
By prioritizing speed of deployment, IT services firms aren't just delivering software, they're delivering wins. They're giving their clients something to show for their money, something to brag about to their bosses and their boards. They're building momentum and trust, which is invaluable in any client relationship.
So while cost savings will always be part of the equation, I've found that for most end customers, the time-to-value of a new system will trump incremental budget differences almost every time.
Speed is the name of the game.