Report Reveals Top Technology Trends A ● ● technology systems, equipment fi nance companies are now focusing on their back-offi ce technology systems. Th at’s a key fi nding from the 2015/2016 Business Tech-nology Performance Index (BTPI) from ELFA and Capgemini. Th e report provides insight into the technology trends that equipment fi nance companies are using to drive their fi rms into new markets and opportunities and improve their operations. Highlights from the BTPI report, which is based on industry research and input from ELFA members, include: FTER YEARS of focusing on improving their front-end Replacing front & back end systems remains a top priority for equipment finance companies 40% TODAY are considering back–end platform replacement within months 18 25% Will also look at front-end platforms How long will core platforms last? Average time in use for core platforms front-end back-end 8.4 years 11 years Replacement of front-and back-end systems remains a top initiative for equipment fi nance companies in the near future: Reversing the traditional focus on the front end, 40% of the survey respondents indicated that a back-end platform re-placement would be considered in the next 18 months, while only 25% said the front-end platform would be looked at. A total of 60% of respondents indicated that their core back-end platform does not meet their future needs, while 40% indicated that their back-end platform doesn’t meet their current needs. Nearly half of all respondents indicated that their core front-end platform does not meet their future needs, with 40% of respondents looking for increased workfl ow capabilities. Data show that a majority of companies are more interested in establishing a single, enterprise-wide package-based solu-tion, with almost 40% reporting interest in implementing best-of-breed solutions from multiple vendors. of equipment finance companies report back-end platforms don’t meet current needs 40% TOMORROW 60% say back-end platforms don’t meet future needs and almost 50% say front-end platforms don’t either! What’s missing from back-office platforms? ● ● Improved workflow Data analytics & reporting Partner & customer portals Integration to other systems Big data, cloud computing and mobile adoption are set to grow: ● ● ● A total of 61% of respondents said big data is becoming a driv-er of current revenues as it helps them identify opportunities for cost savings. While a quarter of respondents do not currently have cloud computing and 60% consider themselves adoption beginners, it is expected that cloud capabilities will grow in the coming year. Over half of the respondents indicated that mobile is a best-in-class off ering and they have planned for it in the future, despite 60% of companies currently ranking themselves at the bottom of an adoption lifecycle. 35% identified data analytics & management as a deficiency in front office too The path forward Drive down “KEEP IT RUNNING” costs each year for managing IT costs Aggressively manage “IMPROVE THE BUSINESS” costs SYSTEM REPLACEMENT COST CHECKLIST Internal Costs External Costs Post Project Costs Business: i p t b ce gy Performan Technolo Business 016 Index 2015/2 include improvements in operational effi ciencies, product inno-va-tion and access to new channels and markets. Th e report off ers strategies for equipment fi nance fi rms to improve their return on IT investment and a checklist of system replacement costs. ■ in collaboration with Effective digital strategies offer competitive advantage across equipment fi nance companies’ value chains. Th ese requirements, vendor selection, system testing, implementation Hardware, software & implementation: licenses, training, configuration, implementation Maintenance & support: vendor, internal IT, internal business upgrades IT: installation, system configuration, migration Consultants: Releases & business process definition, migration www.capgemini.com/btpi Source: Business Technology Performance Index 2015/2016, Capgemini and ELFA Copyright © 2015 Capgemini. All rights reserved. Download the Report and Infographic Download the 2015/2016 BTPI report and accompanying infographic from the ELFA website at www.elfaonline.org/Data/?fa=Studies#BTPI. 44 JANUARY/FEBRUARY 2016 EQUIPMENT LEASING & FINANCE MAGAZINE