Poorly executed software implementations cost companies billions of dollars every year. However, outdated legacy systems and badly configured software applications can be just as financially detrimental to your bottom line.
The only answer here is to approach software investments and implementation projects more strategically, and thus more successfully. To help you ensure your digital transformation efforts yield the highest potential returns, this guide distills our implementation experts’ key insights on successful projects, including the following:
A study of 80 global banks from 2018 to 2022 found that the group's digital leaders achieved annual total shareholder returns (TSR) of 8.1%, compared to 4.9% for those lagging behind. At the same time, the banks with higher digital solution adoption saw a higher return on pre-tax tangible equity (ROTE) from 15.5% to 19.3%, as compared to lagging group members' growth from 13.6% to 15.3%.
Ultimately, the cost of falling behind competitors in terms of digital maturity is devastating. You will need to digitally transform your operations in order to remain competitive. However, calculating the individual ROI of each new infrastructure upgrade or new solution implementation is slightly more complex.
Your costs and returns are dependent on the type of solution you are implementing, the state of your current infrastructure, and your project goals. Consequently, there is no catch all way to estimate a general ROI on new software implementations. That said, there is a way you can calculate your own potential financial outcome. The simplified version is to subtract your total costs from your total returns.
The cost of implementing a new system varies based on factors such as the complexity of business processes, data migration needs, integration with other platforms, and the level of customization required. At a high level, costs generally include:
While the upfront investment may seem substantial, a successful implementation leads to measurable financial and operational benefits. Organizations that deploy and optimize their software effectively often experience:
You can obtain a bespoke estimate on what a particular solution implementation would cost your organization and the benefits you can anticipate as a result of your new software by speaking to an expert.
A reported 83.9% of IT projects fail. Yet, this isn’t necessarily the result of poor investments. A large portion of these failures result from poorly executed implementation projects. Consequently, investing in the implementation process is just as important as investing in the new technology itself.
The challenges you face during your new solution implementation may be unique to your organization. Your current system infrastructure, the type of solution you are implementing, your specific business processes, and the requirements of your software project all play into the challenges of software implementations. Consequently, there is no catch-all list of potential issues you will encounter.
However, there are several common reasons behind project management issues and software implementation failures. The best way to address, and thus avoid, the biggest software implementation challenges is to be prepared. So, in the interest in developing the proper software implementation process for your project goals and objectives, here are some of the most common roadblocks you should be aware of:
The FRD is a massive document detailing how your new system should work. It’s crucial, but let’s be honest—most people don’t read it thoroughly. And that’s where trouble starts. Overlooked details can lead to costly mistakes, delays, and endless frustration down the road.
Imagine your company is rolling out SAP Commissions, and the FRD includes detailed incentive structures, commission calculations, and reporting requirements. Your team skims it, thinking, “Looks good.” Fast forward to the configuration phase, and suddenly, a critical performance bonus structure is missing. Fixing it now means change requests, which might push out the project timeline.
Your commissions software is only as good as the data feeding into it. But getting clean, structured, and usable data from multiple sources? That’s often a bigger headache than people expect. Without proper planning, data issues can bring the project to a screeching halt.
Picture a sales organization that wants to automate commissions, but their historical data is scattered across spreadsheets, CRM reports, and emails. The implementation team asks for a clean dataset, but internal IT resources are stretched thin. The project stalls for weeks while teams scramble to organize the data—delaying everything from configuration to go-live.
UAT is where your team gets hands-on with the system before it goes live. This is the moment of truth, and if things don’t work as expected—or if users struggle with the interface—expect resistance, frustration, and potentially more delays.
For example imagine a global sales team is gearing up to use SAP Commissions. UAT is scheduled for two weeks, but the moment managers start testing, reports don’t look right, and commission calculations seem off. Some users are confused by the new system, while others are hesitant to embrace the change. Extra training is needed, UAT stretches into another month, and the go-live date gets pushed back—again.
Software implementation can feel overwhelming, but with the right approach, it doesn’t have to be. At Canidium, we’ve spent over a decade refining best practices that make implementations smoother, more efficient, and ultimately more successful.
One of the biggest reasons software projects run into trouble is a disconnect between expectations and reality. That’s why we believe in Show Early, Show Often—a method of providing frequent demos and gathering feedback throughout the project. This approach keeps surprises to a minimum by allowing stakeholders to see the system in action before it’s too late to make changes.
For example, in one SAP Commissions implementation, a client had designed a complex multi-tiered incentive structure. By demonstrating the configurations early in the process, we were able to catch a miscalculation in their logic before it caused a costly delay. Regular visibility into the project prevents misunderstandings and ensures the final product aligns with business needs.
Even with a perfectly implemented system, success hinges on whether people actually know how to use it. That’s why training isn’t just a checkbox at the end of the process—it’s an integral part of the journey. At Canidium, we focus on hands-on, role-specific training designed to build confidence and familiarity.
We’ve seen firsthand how this makes a difference. In one case, a client’s sales team was hesitant to adopt a new reporting tool because they found it overwhelming. Instead of waiting until go-live, we integrated training sessions throughout the project, making sure they had opportunities to interact with the system in real-world scenarios. By the time deployment arrived, they weren’t just comfortable with the tool—they were excited to use it.
Another major challenge in implementation is data readiness. Poor data quality can bring even the best-planned projects to a standstill, which is why early preparation is crucial.
A company we worked with had over a decade of sales data scattered across multiple platforms, including outdated CRM systems and Excel spreadsheets. Without a clear strategy for organizing and cleansing this data, the project could have faced major delays. By working closely with their team to structure and format the data in advance, we avoided unnecessary roadblocks and ensured a seamless integration into their new system.
Of course, even with the most thorough implementation, some organizations need extra support after go-live. That’s where Managed Services come in—providing expert guidance while your team gets comfortable with the new system.
One client experienced this firsthand when, despite a smooth initial launch, they ran into an unexpected issue during their first quarterly payout cycle. Because they had opted for Managed Services, they had immediate access to expert assistance, allowing them to resolve the issue quickly without disrupting their commission payments. Having ongoing support can make all the difference when navigating those first few months post-implementation.
Research shows that 70% of digital transformations fall short of their objectives. However, despite this dire statistic, digital transformation via new software implementations is still vital for competitive companies. The estimated cost of poor software quality (CPSQ) in the U.S. is at least $2.41 trillion.
Ensuring a successful implementation of new software solutions is a vital component of fostering necessary continuous improvement to meet evolving business goals despite potential issues that software updates and digital transformation initiatives can bring about. The key to overcoming the challenges of the software implementation process is to plan ahead. Consequently, you need to strategize your approach to software implementation before the project begins.
In the interest of avoiding the post-implementation issues generated by a poor software implementation process, here is a step-by-step guide of a successful project start to finish:
The first step in any software implementation is engaging with your implementation partner or software vendor. These initial discussions set the stage for success by ensuring that both business and technical needs are well understood. A productive meeting will cover project scope, key requirements, potential challenges, and estimated costs. A detailed discovery process at this stage helps avoid costly surprises later. The goal is to align expectations early and ensure the project quote is as accurate as possible.
One of the most common reasons software implementations fail is the lack of clearly defined requirements. Instead of attempting to include every possible feature from the start, adopt a phased implementation approach. This ensures that core functionality is deployed first, allowing teams to get value from the system early while enabling future enhancements.
Key areas to focus on when defining requirements:
Proper requirement gathering reduces the risk of scope creep and ensures a smoother implementation process.
An effective implementation requires careful planning of both time and resources. A realistic timeline considers potential roadblocks, required internal approvals, and testing phases. Assigning the right people to the project, both from the vendor’s side and internally, is critical for success.
Additionally, software implementation is not a one-time expense—there are ongoing costs related to licensing, support, updates, and maintenance. Considering the Total Cost of Ownership (TCO) early on helps businesses budget properly and avoid unexpected expenses down the line.
The Statement of Work (SOW) acts as the foundation for the implementation, outlining:
A well-drafted SOW prevents scope creep and costly miscommunications. Ensure that all stakeholders review and agree on the SOW before proceeding.
The project kickoff is an opportunity to communicate the implementation plan to the broader team. Leadership buy-in is essential because it ensures that teams are committed and aligned with the project’s objectives.
A successful kickoff meeting should:
Leadership support helps drive engagement and minimizes resistance to change.
The Discovery Phase is a deep dive into the system’s functional and technical requirements. This phase includes workshops with key stakeholders to refine project details.
The result is a Functional Requirements Document (FRD), which outlines:
This document should be reviewed against the SOW to ensure consistency. Any gaps between the two should be addressed before moving forward to prevent unexpected delays or additional costs.
Change requests are inevitable, but managing them effectively is crucial to staying on schedule and within budget. Establish a clear process for handling CRs, including:
A structured approach to change management prevents unnecessary delays and ensures that only essential modifications are made.
Once the requirements are finalized, implementation proceeds through an iterative process of design, configuration, and testing.
This cycle ensures that errors are caught early and the system is refined before deployment.
The final phase is deploying the system into a production environment. A well-planned go-live strategy includes:
By following these key steps, businesses can increase the likelihood of a successful software implementation, minimize risks, and ensure long-term value from their investment.
Understanding the costs of a software implementation project—such as licensing, implementation services, data integration, and ongoing support—allows you to budget effectively. While the upfront investment may seem significant, the long-term benefits include reduced administrative costs, increased productivity, improved compliance, and faster, more reliable outputs.
Challenges such as unclear requirements, data quality issues, and ineffective user acceptance testing can derail a project. To mitigate these risks, best practices like continuous stakeholder engagement, early user training, and proactive data preparation are essential. Our nine-step implementation framework—from initial planning and requirement gathering to deployment and post-go-live support—ensures a structured, efficient rollout.
Ultimately, successful software implementation requires a strategic approach, commitment from leadership, and collaboration with experienced partners. Organizations that invest in a well-planned implementation process can maximize their return on investment, streamline operations, and maintain a competitive edge in an increasingly digital business landscape.
Learn more about strong project management for successful software implementations here.