PE-Backed Companies Archives - Page 12 of 21

Colocation Security: Facilities, Services, Meaning

April 25, 2023 Brad Gerick

Colocation Services: Why Use Them?

Colocation services provide businesses with the space, power, cooling and security required to host their IT equipment in a data center. Colo security providers offer a wide range of services tailored to the requirements of organizations of all sizes, from small businesses that may need only a few server racks to large enterprises that require entire data halls.

With cybersecurity as important as ever, it pays to work with information technology experts who can help store and manage your data. Specialized third-party service providers know how to do exactly that, no matter your company’s size or industry.

Let’s talk in more detail about what colocation security is, as well as its benefits.

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One aisle of a colocation security data center. It's dark with blue-green lights reflecting off the floor.

8 Benefits of Colocation Data Center

Improved uptime and reliability: To ensure that your data is always available, colocation data centers have implemented security measures against physical threats, as well as redundant power and cooling systems. This can result in improved uptime for your IT infrastructure.
Reduced costs: Colo services are also a great way to lower costs as it’s much more affordable than building and maintaining your own data center. Colocation providers have economies of scale that you can benefit from.
Improved security: Colocation providers have a strong focus on security, with strict physical and environmental security measures in place, protecting your most sensitive data from unauthorized access, theft or damage.
Enhanced performance: You’ll also tap into high-speed networks and other resources that can improve the performance of your IT systems. This can be important for businesses that need to process large amounts of data or that need to provide high-availability services.
Greater flexibility: Scale your IT infrastructure up or down as needed, so you can easily accommodate changes in your business. Businesses that are growing rapidly or that are facing seasonal fluctuations in demand will find this especially helpful.
Improved compliance: Experienced providers often have experience working with businesses in regulated industries, and they can help you to meet your compliance requirements.
Access to expertise: Each provider’s experts can help you to manage your IT infrastructure. This can free up your internal IT staff to focus on more important projects, such as developing new products or services.
Peace of mind: Knowing that your data is safe and secure in a colocation data center can set your mind at ease. That way, you can focus on running your business without worrying about your IT infrastructure and sensitive data.

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Colo Security Use Cases

Disaster Recovery

By colocating your IT equipment in a colocation facility, you can ensure that your data and applications are always available, even in the event of a disaster. Colocation facilities have redundant power and cooling systems, as well as security measures in place to protect against physical threats. This can help to ensure that your data is always available, even if your primary data center is unavailable.

Compliance

Many industries, such as financial services and healthcare, are subject to strict compliance regulations. By colocating your IT equipment in a colocation facility, you can ensure that your data is being stored and managed in accordance with these regulations.

Colocation providers often have experience working with businesses in regulated industries, and they can help you to meet compliance requirements.

Data Protection

Colocation can help you to protect your data from unauthorized access, theft or damage. Colocation facilities have strict physical and environmental security measures in place, such as 24/7 security guards, video surveillance and fire suppression systems.

Where are Colocation Facilities?

Colocation facilities are located all over the world, in major cities and data center hubs. Some of the most popular locations for colocation facilities include:

North America: The United States and Canada are home to some of the largest and most reliable colocation facilities in the world. Major cities in North America with a high concentration of colocation facilities include:
- New York City
- Chicago
- Los Angeles
- Dallas
- Toronto
- Ashburn
Europe: Europe is another major market for colocation facilities. Major cities in Europe with a high concentration of colocation facilities include:
- London
- Frankfurt
- Paris
- Amsterdam
- Dublin
Asia: Asia is a rapidly growing market for colocation facilities. Major cities in Asia with a high concentration of colocation facilities include:
- Beijing
- Shanghai
- Hong Kong
- Singapore
- Tokyo

When choosing a colocation facility, it is important to consider the following factors:

Location: The location of the colocation facility is important for both performance and security. You want to choose a facility that is located in a low-risk area with access to high-speed networks.
Security: The security of the colocation facility is critical. You want to choose a facility that has strong physical and environmental security measures in place.
Uptime: The uptime of the colocation facility is important for your business. You want to choose a facility that has a high uptime guarantee.
Cost: The cost of colocation can vary depending on the size of your equipment, the level of services you need and the location of the facility. You want to choose a facility that fits your budget.

ALSO SEE: How To Choose Your Tech Stack

Systems Selection & Implementation Resources

What is the Difference Between Cloud and Colocation?

Cloud computing and colocation are both viable options for hosting your IT infrastructure. Cloud computing can offer scalability, cost-effectiveness, and reliability, while colocation can offer more control, dedicated environments and high availability.

Ownership and Control

With cloud computing, you don’t own the physical hardware or infrastructure that runs your applications. Instead, you rely on the cloud provider to manage and maintain the underlying technology.

With colocation, on the other hand, you own and control the servers and other hardware that run your applications. This can give you more control and flexibility over your IT environment, but also requires more management and maintenance from your team.

Scalability

While both cloud and colocation can be scalable, the process is different. With cloud computing, you can easily add or remove resources as needed by adjusting your subscription or service plan with the provider. With colocation, you need to physically add or remove servers and equipment as needed, which can take more time and resources.

Costs

While cloud computing can be more cost-effective than traditional on-premises infrastructure, it’s important to note that costs can vary widely depending on your usage, the services you choose and the provider you use.

With colocation, you pay for the space and power your equipment uses, as well as any additional services like security or maintenance. Over time, the costs of colocation can add up, especially if you need to invest in additional hardware or infrastructure.

Security and Compliance

Both cloud and colocation providers offer high levels of security and compliance, but the responsibility for maintaining that security is different. With cloud computing, the provider is responsible for securing the underlying infrastructure, while you are responsible for securing your applications and data.

With colo security, you are responsible for both the hardware and the applications, which can give you more control, but also requires more resources.

Ultimately, the choice between cloud and colocation will depend on your business’s specific situation. A dedicated third-party resource can be a valuable asset as you consider the pros and cons of each.

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What are the Different Types of Colocation?

Retail Colocation

This is the most common type of colocation, where a company rents space in a data center to house its own servers and equipment. The organization is responsible for the hardware, software and security of its systems.

Wholesale Colocation

A company leases an entire data center or a portion of a data center. The company is responsible for the hardware, software and security of its systems.

Hybrid Colocation

This is a combination of retail and wholesale colocation. The company leases space in a data center to house its own servers and equipment, but the colocation provider also provides some of the services, such as power, cooling and security.

Managed Colocation

The colocation provider also manages the customer’s servers and equipment. This can be a good option for businesses that do not have the resources or expertise to manage their own IT infrastructure.

Carrier-Neutral Colocation

This type of colocation facility offers connections to multiple telecommunications providers, making it ideal for businesses that require high levels of network connectivity and redundancy.

Edge Colocation

This type brings the data center closer to end-users by placing it in smaller, more distributed locations. This can improve latency and reduce network congestion for applications that require real-time processing.

Containerized Colocation

IT equipment is placed in shipping containers that can be transported easily and deployed quickly in different locations. This can be useful for businesses with dynamic infrastructure requirements, such as those in the events or construction industries.

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Colo Rack: What is it?

A colo rack is a specialized cabinet or enclosure designed to house servers and other IT equipment within a colocation facility.

Typically, colo racks are either 42U or 47U in height and come in either an open-frame or enclosed design. While open-frame racks are more affordable, enclosed racks provide a more secure environment for IT equipment.

Colocation racks often come with additional features such as power distribution units (PDUs), cable management systems and security features such as locks and security cameras.

When choosing a colocation facility, it’s essential to select a colo rack that meets your specific situation. Your choice depends on your IT equipment’s size, your budget and your security requirements.

Larger colo racks are more expensive but can provide more space for your equipment. On the other hand, smaller racks may be a better fit for smaller businesses with less equipment or lower budgets. Additionally, you must consider security features to protect your IT equipment from unauthorized access.

The invite-only Business Builders’ Network is full of IT professionals who specialize in colocation services.

Our latest quarterly insights report showed that cybersecurity continues to be a top priority for private equity firms and their portfolio companies. Private and public companies are also investing heavily in this area.

With so much at stake, many companies are turning to expertly matched third-party resources to walk them through colo security services. Our research and operations team works hand-in-hand with the top cybersecurity firms in industries including healthcare, manufacturing, technology and more.

When you’re ready to connect with a niche-specific provider to explore and enhance your colocation security strategy, we’ll be ready to make tailor-made introductions within a single business day.

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Org Chart Planning: Aligning with Growth Strategy

April 24, 2023 Brad Gerick

Are you a business leader looking to take your organization to the next level? Are you struggling to find the right structure to support your growth? If so, you’re not alone.

Many companies struggle with org chart planning, but it’s a critical step in any successful growth strategy.

Let’s explore the benefits of org chart planning and how a senior advisor or consultant can help you create a structure that supports your growth goals.

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What is Org Chart Planning?

Org chart planning is the process of designing an organizational structure that aligns with your business goals. This includes determining the roles and responsibilities of each employee, as well as the reporting relationships between them. A well-designed org chart can help you streamline your operations, improve communication, and increase efficiency.

The Benefits of Org Chart Planning

Improved clarity and accountability: By clearly defining roles and responsibilities, a well-designed org chart can improve clarity and accountability. This prevents confusion and overlap, while ensuring that everyone knows their job.
Better communication and collaboration: The right org chart can improve communication and collaboration by breaking down silos and displaying how different teams and departments interact.
Increased efficiency and productivity: Streamlining procedures and processes can increase efficiency and productivity, saving both time and resources while improving work quality.
Greater adaptability to changing business needs: Flexibility is key in today’s rapidly changing business environment. The right structure design can help your company adapt to changing needs.
Increased employee satisfaction: Org chart planning also gives employees a clear understanding of their role and provides them with the necessary resources to succeed. This can cause greater motivation and productivity.

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How a Senior Advisor Can Help

Creating an effective org chart requires experience and expertise in organizational design. This is where a senior advisor or consultant can be invaluable. A senior advisor with COO/management experience can help you:

Improve your current org chart and identify areas for improvement: An experienced consultant can thoroughly analyze your structure, ensure that it is efficient and align it with business goals. They can also detect any overlapping roles or confusion to eliminate redundancy.
Design a new org chart that aligns with your growth goals: A management pro can identify key areas of focus and design a structure that supports them, creating a flexible org chart that accommodates future growth.

Ensure your org chart supports your company culture and values: An expert in organizational design can analyze your current structure and identifying discrepancies with your mission, vision and values. They can then make sure your updated org chart accurately reflects those priorities.
Guide you on implementing the new org chart and managing change: A skilled advisor can help you communicate the new org chart to your employees and manage the transition process, including addressing any concerns or resistance. Strong communication and the ability to address employee questions and concerns is key.
Manage the transition process: An experienced change management professional identify potential challenges and develop a plan to address them. They can also track the progress of the transition and make any necessary adjustments.

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The Importance of Strategy

Effective org chart planning requires a strategic approach.

Having a clear understanding of your growth goals: Before you begin designing your org chart, you need to have a clear understanding of your growth goals. What do you want to achieve in the next year, three years, five years? Once you know your goals, you can begin to design a structure that will help you achieve them.
Identifying key areas of focus: Once you know your growth goals, you need to identify your business’s key areas of focus. These are the areas where you will need to allocate the most resources in order to achieve your goals. For example, if you are planning to expand into a new market, you will need to allocate resources to marketing and sales.
Allocating resources to support your key areas of focus: Once you have identified your key areas of focus, you need to allocate resources to support them. This means hiring the right people, providing them with the training they need, and giving them the tools and resources they need to be successful.

Creating a Structure for Growth

Your org chart should be designed to support your growth strategy.

Create a scalable structure: Your org chart should be designed in a way that allows you to add new employees and departments as your business grows. This may mean creating a flatter structure with fewer levels of management, or it may mean creating a more decentralized structure with more autonomy for individual teams. There is not, however, a magic bullet for this step.
Build in flexibility: It should also be flexible enough to adapt to changing business needs. This may mean creating cross-functional teams that can work together on projects that cut across traditional departmental boundaries. It may also mean reorganizing to better align with your growth strategy.

Regularly review your org chart: Don’t set it in stone. It is important to regularly review your org chart to make sure that it is still aligned with your top KPIs and while remaining flexible enough to adapt to changing needs.

Org chart planning is a critical step in any successful growth strategy. By creating a structure that aligns with your business goals, you can improve communication, increase efficiency and build a foundation for future growth.

Private equity firms often seek outside help to reorganize their portfolio companies, but private and public organizations can also reap the benefits of a niche-specific senior advisor.

Our research and operations team knows the exact resource you need before you ever contact us, and they’re ready to connect you in less than 24 hours. Reach out now to tap into the invite-only Business Builders’ Network that’s already helped thousands or companies like yours with growth strategy.

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AI Data Analytics: Business Intelligence Tools

April 20, 2023 Brad Gerick

What is AI Analytics?

Artificial intelligence (AI) has emerged as a powerful tool for data analytics in the business world.

AI-driven analytics is the use of artificial intelligence and machine learning techniques to analyze and interpret data. It involves the application of algorithms that can learn from data, identify patterns and make predictions or recommendations based on that analysis.

It’s also a way for organizations and businesses to unlock insights and make decisions faster and more accurately than traditional methods.

“When people are thinking about AI, they’re thinking about the sentient robots that play Go and talk to you,” says Mike Datus* of AI Business Analytics, one of our trusted Business Intelligence & Analytics service providers. “Then there’s this other part of the world which is ‘business’ AI or machine learning, which is really using mathematical models to predict things and find really deep patterns.”

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Let’s explore the benefits of AI for business intelligence and analytics, the tools available and the role of AI data analysts in modern organizations.

AI Analytics vs. Traditional Analytics

Traditional analytics methods involve using statistical techniques to analyze historical data and identify trends and patterns. But they also have limitations in processing and analyzing large and complex data sets.

In contrast, AI analytics methods can process massive amounts of data in real-time, identify complex patterns and make accurate predictions.

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“I think this is something where when we talk about it, the CEOs’ ears perk up,” says Steve Holms, also of AI Business Analytics. “Either because that’s something they thought about, but they thought it was just out of reach, or they’re just like, ‘Oh, I never thought you could do that.’”

AI Analytics Tools

There are several AI analytics tools available for businesses, including IBM Watson Analytics, Google Cloud AI Platform, Microsoft Azure AI and Amazon SageMaker.

These tools, and many others like them, use machine learning algorithms and statistical models to analyze data and provide insights. They also offer features such as natural language processing, data visualization and predictive modeling. They can help organizations improve their decision-making, streamline processes and gain a competitive advantage.

Some of them are proprietary, and only available when you work with an innovative third party.

Datus recalls a food industry client they worked with that reduced shrinkage by 7.5 percent year-over-year.

“What they were traditionally doing was somebody was doing a spreadsheet calculation and looking at the last month and saying, ‘OK, we’re going to do what we did last month,’” Datus says. “But that doesn’t always make sense, because people like making hotdogs in the summer and not in the winter, right? So with an AI model that predicts how much chicken or some food people will want, you can get those numbers dialed in more tightly in simulation.”

They achieved similar results for a private-equity-backed healthcare manufacturing company.

“They make widgets for training doctors and nurses to do hospital procedures,” says Datus. “Because the method before was very traditional, not using advanced mathematics, it could be wildly off, and very often it would get overridden by people’s emotions.”

By giving the AI tools a chance, the medical firm boosted revenue by 5 percent for the year.

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Business Intelligence Uses for AI

Lead scoring is one example of how AI analytics can help businesses prioritize their leads and focus on the most promising ones.“How can we help you stack rank all the leads so you can basically work your most promising leads? How do you be more efficient with your sales team?” Holms says.

AI analytics can predict which leads are more likely to convert and provide personalized recommendations to sales teams.

Churn prediction is another example of how AI analytics can help businesses retain their customers.

“What if we can tell you which one of your customers are likely to unsubscribe in the next three months?” Holms says. “Maybe your customer success team should focus on those right away, right? Because it’s a lot easier to prevent a churn than to, once they churn, try to get them back as a customer.”

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Demand forecasting is also an essential area where AI analytics can help businesses. By analyzing historical data and market trends, AI analytics can predict future demand and help businesses optimize their inventory and procurement processes. This can lead to significant cost savings and improve operational efficiency.

Datus recalls a time when a skeptical CEO they worked with gave their AI model an opportunity.

“We deployed the AI model, and it predicted a massive spike in demand in the near future. The CEO said, “You know what, I’ll swallow the inventory cost, but let’s produce up to what this AI model says.’ It turns out that spike that the AI model predicted gave them another 5 percent revenue for that year,” Datus says. So that’s the power of these things. If you give it the right data and you build it the right way, it can be more accurate and less biased than traditional analytics.”

What is an AI Data Analyst?

An AI data analyst is a professional who uses AI analytics tools and techniques to extract insights from data. They are responsible for analyzing large and complex data sets, developing predictive models and providing recommendations to decision-makers.

AI data analysts should have a strong understanding of machine learning algorithms, statistical modeling and data visualization. They should also have excellent problem-solving skills and the ability to communicate complex ideas to non-technical stakeholders.

AI Business Analytics is just one of the expertly vetted resources that make up the invite-only Business Builders’ Network.

Our research and operations team is ready to connect your PE firm, portfolio company, or private or public company to a niche-specific third party that can help you get up to speed with a artificial intelligence business analytics.

Whether healthcare, manufacturing, technology, retail or any other data-driven industry we know the resources you need before you even contact us.

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*Privacy is important to us. While the source and company name have been changed, these are real quotations from a real service provider in the BluWave Business Builders’ Network.

Q1 2023 BluWave Insights: HR, Tech Take Center Stage

April 20, 2023 Brad Gerick

Every quarter our team analyzes the projects we work on with our 500+ PE firm clients to get a bird’s eye view of the market. We recently compiled our Q1 2023 findings into our BluWave Insights Report. You can request your copy and our client coverage team will be in touch.

Key findings from Q1 ’23 include:

Value creation activity is at an all-time high, matching Q1 2022.
Human capital remains PE’s primary area of focus at 45% of all Q1 activity, also matching an all-time high.
Technology remains a priority at 11% of all Q1 PE activity.

Learn more about the insights we gleaned from Q1:

We can support your value creation needs, human capital needs, technology needs, sales & marketing needs and more.

HIPAA Audit Needed for IT Firm Serving Healthcare Industry

Service Area: Compliance & Regulatory

Client Type: Portfolio Company

Service Provider Type: Supply Chain Technology Firm

Industry: Information Technology Managed Care Services

Need

Healthcare Managed Services IT Firm

An IT firm that serves the mid-size and enterprise market needed compliance help around HIPAA laws

Challenge

HIPAA compliance for sensitive client medical information

The IT firm had a lot of clients with a large customer base in the healthcare/medical industry. They had accumulated a large amount of sensitive information from their clients that had become an afterthought when servicing the customer.

The firm’s internal legal team is lean, and they didn’t have time to tackle this issue. They contacted BluWave asking us to connect them to a compliance firm that could help them do an internal audit on customer data.

How BluWave Helped

The Business Builders’ Network

We immediately tapped our network for a short list of exact-fit solutions. We knew just who to turn to for this mixed bag of regulatory challenges, having worked with third parties that completed similar projects for other companies.

Result

Connected with an IT firm for an audit

The firm selected one of the service providers we shared, kicking off their audit to ensure HIPAA compliance. They accelerated the company’s process, freeing up internal resources to focus on other pressing matters while ensuring that they weren’t legally exposed to any privacy issues.

When the engagement was completed, the client asked us for opportunities to continue working with the third-party firm.

Our Primary resources have shown an exceptional level of knowledge in preparing us.

Their assistance made all the difference and allowed us to be extremely successful in preparing our policies.

They went well above expectations in answering questions, performing the work requested and being flexible with our schedules as we coordinated all of our teams availability. They were extremely detail-oriented and very organized throughout the entire initial period. We are looking forward to continuing our work with them.
-General Counsel at the Company

Manufacturing Equipment Financing: Machine Loans, Leases

April 19, 2023 Brad Gerick

Machinery Finance: Process

From a high-level point of view, there are four steps to the machine tool financing process.

1. Apply

You apply for financing from an institution. Whether you’re seeking a few thousand dollars, or millions upon millions, this is the first step.

2. Get Approved

After the financial institution reviews your application, hopefully you’re approved to receive the funds. Some banks allow for pre-approval, which speeds the process.

3. Review and Sign Finance Agreement

After you have the financial institution’s go-ahead for your manufacturing financing, they’ll send you terms to review. If both sides agree, you can sign the papers and move to the crucial last step.

4. Funds Disbursed

Once the ink is dry, the bank should finalize the transaction by giving you the money. Now it’s time to purchase that new equipment to finance your business.

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That’s a simplified summary. The actual process is a bit more complicated.

The Business Builders’ Network has expert third-party resources who can advise you in this crucial MFR process. Whether you’re in glass, construction, textile and apparel, chemicals, electronics, steel, refrigeration, pharmaceuticals or one of many other industrial businesses, we already know an exact-fit service provider to help you through this process, and grow your business.

Before we connect with expert help from the invite-only network, here’s a more detailed look at manufacturing equipment financing, whether you’re looking to loan or lease.

Equipment Loans: Manufacturing Industry

Whether you need a a single piece of equipment, or you want to rapidly expand your fast-growing fleet, machine tool financing can speed up that process.

Less complicated pieces of equipment may only cost a few thousand dollars, and these may be a good candidate for an SBA loan.

But if your ask meets a minimum threshold – usually around $250,000–500,000 – firms are likely to require you to share tax returns and/or audited financial statements.

Depending on a number of factors, a financial institution may be willing to lend you tens of millions of dollars to make your purchases.

READ MORE: Why Hire an Interim CFO?

Terms Length

Typical loan terms could range from 24-84 months. (That is, 2–7 years.) This will depend on how much money you need, how long you need to pay it back and how willing the bank is to work with you.

Rates

You may be able to find interest rates under 4 percent for machine tool financing, but it’s likely to increase from there.

CNC Finance Rate Factors

The current federal rate
The borrower’s credit score
The type of machine being financed
The risks to the loan
The company’s borrowing history
The borrower’s credit history

Application to Funding Timeline

Some firms allow you to apply online, even getting pre-approval. In that case, your loan could be approved the same day, if not within 48 hours.

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Larger, more complicated machinery finance options may not be so straightforward. The approval process could depend on both sides’ availability, as well as all the CNC finance rate factors mentioned above.

What Credit Score is Needed to Finance Heavy Equipment?

This will depend on the lender. Some require a credit score around 500, while others are more stringent, asking for 650 or higher.

Which type of finance should be used to purchase new machines & equipment?

SBA Loans

An SBA loan is a loan backed by the Small Business Administration. The SBA sets guidelines for loans made by its partnering lenders, community development organizations and micro-lending institutions. These loans are often used by small businesses to start or expand their operations.

Financial Institution Loans

If you’re not a small business, you may seek a more traditional CNC finance option. Namely, a loan that is made by a bank or other financial institution. This type of loan can be used by a manufacturing business to purchase new machines and equipment.

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Machine Types

Metalworking machines: Used for cutting, shaping, and forming metal, metalworking machines include lathes, mills, and presses.
Plastics processing machines: Melting, molding, and shaping plastics are possible with plastics processing machines such as injection molding machines, blow molding machines, and extrusion machines.
Woodworking machines: Sawing, planing, and sanding are all achievable with woodworking machines like saws, planers, and sanders.
Textile machines: Fabrics can be spun, woven, and knit with textile machines, including spinning jennies, looms, and knitting machines.
Food processing machines: Mixing, grinding, and baking food are all tasks performed by food processing machines such as mixers, grinders, and ovens.
Chemical processing machines: Mixing, heating, and cooling chemicals are possible with chemical processing machines including reactors, distillation columns, and evaporators.
Power generation equipment: Generators, turbines, and solar panels are examples of power generation equipment used to produce electricity.
Machine tools: Lathes, mills, and drills are among the types of machine tools used to manufacture other machines.
Conveyors: Manufacturing facilities use conveyors to move materials around the facility.
Warehousing equipment: Forklifts, pallet jacks, and conveyors are examples of warehousing equipment used to store and move materials within a warehouse.
Packaging equipment: For packaging products for shipping, equipment such as shrink wrap machines, tape guns, and labelers are used.
Testing equipment: To test the quality of products, tensile strength testers, hardness testers, and vibration testers are some examples of testing equipment used.
Laboratory equipment: Microscopes, centrifuges, and ovens are some examples of laboratory equipment used to conduct scientific experiments.
Vertical centers: Parts that are vertical in orientation can be machined with vertical centers.
Horizontal centers: Horizontal centers are used to machine parts that are horizontal in orientation.
5-axis centers: Machining parts that require 5-axis machining can be accomplished with 5-axis centers.
Lathes: Cylindrical parts can be turned using lathes.
Excavators: Excavators are machines used for excavating soil and other materials.
CNC Swiss turning: Small diameter materials can be turned using this type of CNC machining.
Bobcat: Bobcats are small, all-terrain vehicles used for a variety of tasks, including construction, landscaping, and snow removal.
Horizontal boring mills: Boring holes in horizontal surfaces is possible with horizontal boring mills.
Metrology (CMM): The dimensions of parts can be measured using metrology (CMM) equipment.
Multi-axis turn/milling: Multiple axes can be used to turn and mill parts using this type of CNC machining.
CNC milling machines: Parts can be milled using CNC milling machines.
Tractors: Tractors are used for a variety of tasks, including agriculture, construction, and landscaping.
CNC turning centers: Turning parts can be accomplished using CNC turning centers.
CNC grinding machines: Parts can be ground using CNC grinding machines.
CNC routers: CNC routers are used to cut and shape parts.
Welding: Metal pieces can be joined together by melting and fusing the metal through the process of welding.
Forklifts: Heavy objects can be lifted and moved using forklifts.
Racking: A system of shelves and supports used for storing goods is called racking.
Packaging: The process of enclosing goods in a protective covering for storage or shipping.

Machine Manufacturer Brands

Here are a few of the companies that make this type of manufacturing equipment.

Manufacturing Equipment Leasing

If you prefer CNC leasing to manufacturing financing, you’ll have access to the same great equipment without having to purchase.

There are businesses that lease new as well as used equipment.

Types of Leases

There are two main types of manufacturing equipment leasing: operating leases and finance leases.

The most common type of manufacturing equipment leasing is called an operating lease. This type of lease allows the company leasing the equipment to make monthly payments to the leasing company in exchange for the use of the equipment. At the end of the lease term, the lessee does not own the equipment, but they may have the option to purchase it for an agreed-upon price.
Finance leases differ from operating leases in that the lessee must purchase the equipment at the end of the lease term, which allows the lessee to accumulate equity in the equipment while leasing it.

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Advantages

With leasing, you don’t own the equipment. This can be a good thing if you’re not sure how long you’ll need the equipment or if you don’t want to be responsible for its maintenance. Leasing companies typically offer maintenance and repair services, which can save you time and money.
Leasing can be more affordable than borrowing money. This is because leasing companies typically factor in the depreciation of the equipment when they calculate your monthly payments.
Leasing can be easier to qualify for than a loan. This is because leasing companies don’t require you to have a good credit score
Tax deductible: The payments on a manufacturing equipment lease may be tax deductible, depending on the type of equipment and the terms of the lease. This can save you money on your taxes.
Smaller monthly payments: Leasing can often result in smaller monthly payments than purchasing equipment outright. This can free up cash flow for other business expenses.
Buy-out option: Many leasing agreements include a buy-out option, which allows you to purchase the equipment at the end of the lease term for a pre-agreed-upon price. This can be a good option if you decide that you want to keep the equipment after the lease term is up.
Variety of equipment options: Leasing companies offer a wide variety of equipment options to choose from. This means that you can find the equipment that you need for your business, regardless of your budget.

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READ MORE: What is Commercial Due Diligence?

Whether you’re a private equity company working on value creation in your portfolio company, or you’re at a private or public company that’s ready to expand, our research and operations team is here to help.

The third parties in the Business Builders’ Network know whether you need to loan or lease, as well as all the best institutions to help you with the process.

They’ll also work with you to maximize value creation as you take this important step to grow your business. If you’re ready to take the next step, contact us to get connected to exact-fit service providers in less than one business day.

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Sales Process Workflow: Stages, Examples for Businesses

April 18, 2023 Brad Gerick

What is a Sales Process Workflow?

A sales process workflow is a systematic and visual representation of the stages and activities involved in the sales process. It outlines the sequence of steps from identifying leads to closing deals and post-sale follow-up.

The primary goal of a sales process workflow is to provide a clear roadmap for the sales team to follow, improve their performance, reduce errors and be more efficient.

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It can also help identify bottlenecks or areas where the process can be improved. A well-designed sales process workflow ensures that every opportunity is properly managed, tracked and nurtured to maximize potential.

Let’s discuss the different components of a sales process workflow and provide guidance on how to develop and optimize a sales process that works for your business.

Overview of Sales Process Workflow

A sales process workflow is a structured approach to selling that outlines the steps involved in closing a sale. It typically includes four key stages: research, prospecting, sales call and close, and relationship-building. By having a well-defined sales process, sales reps can spend more time on activities that drive revenue and less time on non-productive tasks.

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Developing a Sales Process Workflow

The first step in developing a sales process workflow is to gather input from your sales reps and stakeholders. This can include feedback on the current sales process, as well as suggestions for improvements.

Once you have this input, you can begin mapping out the workflow. This involves identifying the key stages of the process and determining the criteria for moving prospects through the pipeline.

Mapping Your Sales Process Workflow

When mapping out your sales process workflow, it’s important to consider the different stages of the buyer’s journey. This can include the research stage, where the prospect is gathering information about your product or service, the prospecting stage, where the sales rep is reaching out to the prospect, and the sales call and close stage, where the sales rep is working to close the deal.

Each stage should have clear criteria for moving the prospect through the pipeline, such as a certain level of engagement or likelihood to convert.

Lead Categorization

Lead categorization is the process of organizing your leads based on their level of engagement and likelihood to convert. This can include categorizing leads as hot, warm, or cold, based on their level of interest in your product or service.

This step allows you to prioritize your sales efforts and focus on the leads that are most likely to convert.

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Pipeline Methodology

There are different pipeline methodologies that you can use to structure your sales process workflow. The traditional sales funnel is a popular approach, where prospects move through the funnel from awareness to consideration to decision.

The more modern flywheel approach focuses on creating a continuous cycle of attracting, engaging and delighting customers. Each approach has its benefits and drawbacks, and it’s important to choose the approach that works best for your business.

Working with an experienced third party that’s familiar with your industry can be a great way to build the most efficient pipeline for your particular business.

READ MORE: What is Commercial Due Diligence?

Metrics and Analytics

Tracking metrics is an important part of optimizing your sales process workflow. Key metrics that should be tracked include conversion rates, time-to-close and customer lifetime value.

By analyzing these metrics, you can identify areas for improvement and optimize your sales process for maximum effectiveness.

Process Redesign

If your sales process workflow is not working effectively, it may be time for a redesign. This involves identifying bottlenecks and areas for improvement, testing new processes and iterating until the process is optimized.

It’s important to involve your sales reps and stakeholders in this process to ensure that the new process is effective and sustainable.

The BluWave-grade service providers in the Business Builders’ Network are equipped to help businesses with this exact process, whether you work in healthcare, manufacturing, technology or other sectors.

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Training and Coaching

Training and coaching are important aspects of implementing a sales process workflow. Sales reps should be provided with the tools and resources they need to be successful, including training on the sales process, product knowledge and objection handling.

Ongoing coaching and feedback can help to improve performance and ensure that the sales process is being followed effectively.

Depending on your situation, an interim CFO may be just the person you need to get set the tone internally and chart a strong path forward for your sales team.

READ MORE: Interim CFO for a Financial Crisis

Technology and Sales Process Workflow

Technology can play an important role in optimizing your sales process workflow. This can include tools for lead generation, sales enablement and CRM software. It’s important to choose the right technology for your business and to integrate different technologies for optimal results.

Evaluating and optimizing your sales process workflow is critical to getting the most out of your business. Whether you’re a private or public company, or a private equity firm working with a portfolio company, getting expert third-party guidance can be a fast track to success.

You don’t have to be a private equity firm to use PE-grade resources. Every service provider in the Business Builders’ Network has been vetted and approved by multiple PE firms.

When you contact our research and operations team, you’ll get connected to a tailor-made service provider from the invite-only network in less than one business day.

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What is Product Positioning? Framework, Strategy for Marketing

April 17, 2023 Brad Gerick

Product Positioning Framework

Product positioning refers to the strategic process of establishing a distinct and favorable perception of a product in the minds of consumers relative to its competitors. It involves creating a unique and compelling position in the market that differentiates the product from others and resonates with the target customers.

It is also a strategic marketing process that of identifying and communicating a product’s or service’s key attributes, differentiators and positioning statements to target customers.

To effectively position a new product, it is important to have a deep understanding of the factors that influence its adoption within a specific market segment. This involves gathering and analyzing facts, as well as formulating hypotheses and incorporating them into a dynamic model.

The goal of product positioning is to create a favorable perception of the product in the minds of consumers, giving it a competitive advantage in the market and driving customer preference and loyalty.

Let’s dig deeper into the importance of product positioning and what it entails.

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Positioning Framework Strategy

The right strategy will help private equity firms and their portfolio companies, as well as public or private companies, to position their products and services as favorably as possible.

This can be done by conducting voice of the customer interviews, as well as other market research. By speaking with existing customers, organizations can better understand why people use their product or service.

Speaking to non-customers, however, can be just as important as it sheds light on why people are not using your product or service.

This information can then be used to determine current perceptions, and assess growth opportunities and requirements for deeper market penetration.

Customers – existing and potential – can also be segmented in a way that allows the company to understand which group would be most valuable. Future strategies could then be geared toward those segments.

Many companies seek outside expertise for their particular industry in these situations. Whether healthcare, manufacturing, industrial, technology or more, there are niche-specific third-party service providers that do this on a regular basis.

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Indications

Indications are important considerations in product positioning as they help define the target market and communicate the value proposition of a product. They provide information about the specific problems, needs or desires that a product is designed to address or fulfill. They can be based on various factors, such as the product’s functional attributes, performance characteristics, intended user demographics or usage scenarios.

For example, in the healthcare industry, product positioning for a pharmaceutical drug may involve indicating the specific medical conditions or diseases for which the drug is approved, the recommended dosage, patient age groups or other relevant factors.

In the consumer goods industry, product positioning for a household cleaning product may include indicating the types of surfaces or stains the product is effective on, the recommended usage instructions, or the target market segment, such as families with young children or pet owners.

Indications help guide consumers in understanding how a product can fulfill their needs or solve their problems, and they can also help differentiate a product from competitors by highlighting its specific use cases or advantages.

Clear and accurate indications are crucial in marketing and branding strategies to ensure that the product is positioned effectively in the market and resonates with the needs and preferences of the target customers.

Product Features and Benefits

Effectively marketing your product’s features and benefits is crucial to a product positioning strategy. Here are some of the more important elements:

Differentiation: Positioning a product as unique or superior based on its features and benefits can create a competitive advantage and set it apart from similar offerings.
Value Proposition: A well-crafted value prop highlights the unique features and benefits of a product to customers, justifies its price and creates a compelling reason to choose it over competitive alternatives.
Target Market Alignment: Understanding the target market’s requirements and desires and aligning the product’s features and benefits accordingly can help position the product as relevant and appealing.
Communication: Clear and effective communication of what the product offers through marketing messages, packaging, branding and other promotional materials can create awareness, generate interest and influence perception of the product.
Customer Needs Fulfillment: Ultimately, the purpose of a positioning strategy is to fulfill customer needs or solve customer problems. By aligning the product’s features and benefits with customer needs, the positioning strategy can establish the product as a viable solution that addresses pain points and provides value, increasing customer satisfaction and loyalty.

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Price Analysis in Positioning Strategy

A price analysis is conducted to assess and determine the optimal strategy for a product or service based on its intended market positioning.

Pricing is a critical element of a positioning strategy as it affects how a product or service is perceived by consumers in terms of its value proposition and competitive positioning. It can affect the perceived value of a product, influence customer perception of quality, impact customer willingness to pay and affect overall market positioning.

For example, if a product is priced too low, it may be perceived as of low quality or lacking premium features. On the other hand, if a product is priced too high, it may be perceived as overpriced and not providing adequate value.

Here are three examples of pricing strategies:

Cost-Based Pricing: This strategy involves setting prices based on the production costs, such as materials, labor and overheads, with a desired profit margin. Cost-based pricing can position a product as affordable and budget-friendly, but may not necessarily convey premium quality or unique value.
Value-Based Pricing: This strategy involves setting prices based on the perceived value that a product offers to customers. It takes into account the benefits, features and unique value proposition of the product, as well as the target market’s willingness to pay. Value-based pricing can position a product as premium, high-quality and worth the investment.
Competitive-Based (Market-Based) Pricing: This strategy involves setting prices based on the prices of competitors’ products. It can be used to position a product as competitive and comparable to other products in the market. It may not, however, necessarily differentiate the product or highlight its unique value proposition.

Competitive Analysis in Positioning Strategy

Competitive analysis is a critical component of positioning strategy as it provides insights into the competitive landscape, helps identify market opportunities and threats, and guides the development of an effective positioning strategy.

Some key aspects include:

Understanding Competitors: This understanding enables a company to identify the competitive advantages it can leverage and the potential vulnerabilities it needs to address in its positioning strategy.
Identifying Market Opportunities: By understanding the unmet needs of customers or the gaps in the offerings of competitors, a company can position its product or service to address those gaps and capture market share.
Assessing Competitive Threats: This may include competitors launching new products, changing their pricing strategies or implementing aggressive marketing campaigns. By understanding the competitive landscape, a company can anticipate and respond proactively while adapting its positioning strategy accordingly.
Differentiation: Competitive analysis helps in identifying the unique selling propositions (USPs) of competitors and their positioning strategies. By offering unique features, benefits, or pricing strategies that are distinct from competitors, a company can create a competitive edge and attract customers who are seeking something different or better.
Refining Positioning Strategy: By monitoring competitors’ actions, customer feedback and market dynamics, a company can make informed decisions about adjusting its positioning strategy to stay relevant and effective.

Proven marketing strategy firms know exactly how to position products and services like yours in a competitive market. As margins become tighter and the economy more uncertain, getting the best value for what your business offers is paramount.

The invite-only BluWave-grade network of service providers are expertly vetted for these exact situations. We only connect you to those with a proven track record and who also have multiple recommendations by the world’s leading PE firms.

No matter what your business’s need, we’ll connect you with tailor-made resources in less than 24 hours.

When you’re ready to launch or refine your positioning framework template, contact our research and operations team to start your project.

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Industrial Pricing: Strategies for Manufacturing Businesses

April 14, 2023 Brad Gerick

Manufacturing pricing strategies are top of mind for businesses in this transitionary economy. Industrial pricing has becoming more competitive than ever as margins shrink and supply chain problems persist.

“BluWave is seeing an increased number of resources allocated to competitive pricing analysis from our private equity clients and their portfolio companies,” BluWave co-head of operations Keenan Kolinsky says. “Specifically in the manufacturing and industrial spaces, companies are running into much higher costs for production materials, which is putting a dent in their margins.”

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Man welds at the factory with a protective helmet on. It's pretty dark. The only light comes from the sparks he's creating while welding.

When private companies, public companies, and private equity firms and their portfolio companies contact BluWave for help with industrial pricing, it’s because they’re presented with two difficult options.

1. Increase the Price of Manufactured Goods

This may increase margins, but it also means passing costs along to customers.

They end up paying more for the same products, some of which arrive later due to supply chain and sourcing challenges.

2. Keep Prices the Same

In this scenario, customers continue paying the same price for products. The problem? Margins get thinner and thinner as material and production costs continue to rise due to inflation and demand.

There is, however, a best-case scenario that takes both of these choices under consideration when it comes to industrial pricing.

Manufacturing Pricing Strategies

The expertly vetted service providers in the Business Builders’ Network know industrial pricing strategies for companies like yours inside and out.

“Specialized pricing resources allow companies to stay up to date with their pricing models so they keep margins healthy while maintaining strong relationships with their key customers,” Kolinsky says.

Here are some of the strategies they might employ for your business or portco when you work together.

Understand Your Costs

This includes both your variable costs (those that change with production) and your fixed costs (those that do not).

Variable costs are costs that change depending on the quantity of goods or services produced. For example, the cost of raw materials, labor and packaging are all variable costs.

Fixed costs are costs that do not change regardless of the quantity of goods or services produced. For example, the cost of rent, insurance and equipment are all fixed costs.

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Understand Your Target Market

Conduct thorough research to understand your customers’ needs, preferences and willingness to pay.

This can be done through surveys, interviews and focus groups. It is important to understand what your customers are looking for in a product or service, and how much they are willing to pay for it.

Create Value-Based Pricing

Focus on the value your product or service brings to customers rather than just the cost of production.

This means understanding the benefits that your product or service offers to customers and pricing accordingly. For example, if your product or service saves customers time or money, you can price it higher than a competitor’s product or service that does not offer the same benefits.

Conduct Competitive Analysis

Research your competitors’ pricing strategies to ensure your prices are competitive in the market.

This includes looking at the prices of similar products or services offered by other companies. It is important to be aware of your competitors’ pricing strategies so that you can price your product or service competitively.

Consider Pricing Tiers

Offer different pricing tiers with varying features or levels of service to cater to different customer segments.

This allows you to reach a wider range of customers and maximize your profits. For example, you could offer a basic tier with limited features and a higher tier with more features at a higher price.

READ MORE: How To Analyze Sales Data

Test and Iterate

Continuously test and adjust your pricing strategy based on customer feedback, market trends and business goals.

This is an important part of pricing strategy because the market is constantly changing. By testing and iterating, you can ensure that your pricing strategy is always up-to-date and effective.

Align Pricing with Customer Value

Understand the value your customers perceive in your product or service and price accordingly.

This means understanding what your customers are willing to pay for the benefits that your product or service offers. For example, if your product or service is unique or offers a significant benefit to customers, you can price it higher than a competitor’s product or service that does not offer the same benefits.

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Segment Your Customers

Tailor your pricing strategy to different customer segments based on their needs, behaviors, and willingness to pay.

This allows you to reach a wider range of customers and maximize your profits. For example, you could offer a discount to customers who purchase in bulk or who sign up for a subscription.

Data analytics tools – especially AI-driven ones – can make this a much more efficient and accurate process.

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Communicate Value Effectively

Clearly communicate the unique value propositions of your product or service to customers through marketing and sales efforts.

This means highlighting the benefits of your product or service and explaining why it is worth the price. For example, you could create marketing materials that focus on the features and benefits of your product or service, or you could offer free trials or demos to let customers experience the value of your product or service for themselves.

Implement Pricing Discipline

Ensure consistent pricing practices across all channels and avoid unnecessary discounts or price concessions.

This means setting clear pricing policies and procedures and ensuring that all employees are aware of them. It is also important to avoid giving away discounts or price concessions unless it is absolutely necessary.

Regularly Review and Update Pricing

Regularly review and update your pricing strategy to align with market changes, customer feedback and business objectives.

This is an important part of pricing strategy because the market is constantly changing. By regularly reviewing and updating your pricing strategy, you can ensure that it is always up-to-date and effective.

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You can get connected with a data-driven pricing resource in less than a single business day.

Set up a scoping call with our research and operations team, and they’ll introduce you to a short list of best-fit service providers to help you capture margins and continue to drive volume.

Employee Management Softwares: 13 Reasons To Use Them

April 13, 2023 Brad Gerick

Employee management softwares – or human capital management systems – are a suite of applications that helps businesses automate and streamline their HR processes, from recruitment to payroll.

Here are some reasons why you should use them.

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READ MORE: Hire an Interim CHRO

HCM Systems Benefits

Streamlined automation. Embrace efficiency with modern employee management software that automates labor-intensive tasks such as payroll processing, benefits administration and performance reviews, saving time and resources while improving accuracy.
Seamless communication. Foster collaboration and engagement with robust communication channels offered by employee management software, including instant messaging, email and video conferencing, enabling smooth communication between employees and managers.
Efficient performance tracking. Stay on top of employee performance with comprehensive tracking features, including goal setting, performance reviews and feedback mechanisms, allowing managers to objectively evaluate performance and provide targeted support.
Effortless time-off management. Simplify time-off management with user-friendly features such as leave requests, approvals and tracking, ensuring employees take the necessary time off while preventing staffing issues.
Streamlined onboarding. Expedite the onboarding process with employee management software that provides tools such as employee profiles, training materials and onboarding checklists, helping new hires quickly adapt to their roles.
Effective benefits administration. Simplify benefits administration with features such as benefit enrollment, eligibility tracking and claims processing, ensuring employees have access to the benefits they need without administrative hassle.
Regulatory compliance made easy. Ensure compliance with labor laws and regulations with employee management software that offers features such as time tracking, payroll processing and leave management, minimizing the risk of fines and penalties.
Data-driven decision making. Empower informed decision making with employee management software that provides reporting, analytics and forecasting tools, enabling data-driven insights for optimizing operations.
Improved employee satisfaction. Boost employee satisfaction and engagement with features such as surveys, feedback and recognition offered by employee management software, resulting in a more motivated and productive workforce.
Enhanced talent management. Attract and retain top talent with user-friendly interfaces, mobile apps and social media integration offered by employee management software, ensuring a skilled and engaged workforce.
Efficient time tracking. Effectively manage employee hours, attendance, and overtime with accurate time tracking features, improving workforce management and payroll accuracy.
Streamlined employee relations. Foster a positive work environment with employee management software that offers features for tracking and managing employee relations, such as conflict resolution, performance improvement plans and employee feedback.
Reduced litigation risk. Mitigate litigation risks with employee management software that ensures compliance with labor laws, manages employee records and documentation and provides a clear audit trail of employee interactions, reducing legal exposure and protecting the business from potential lawsuits.

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Choosing Employee Management Softwares

Features: The first step is to identify the features that are important to your company. Do you need a software that can handle payroll, benefits, recruiting and performance management? Or do you need a more specialized solution?
Scalability: As your company grows, you will need a software that can scale with you. Make sure to choose a program that can accommodate your future needs.
Ease of use: Employee management software can be complex, so it is important to choose a software that is easy to use. Look for one with a user-friendly interface and that is customizable to your company’s needs.
Security: Employee management software can contain sensitive data, so it is important to choose a system that is secure. Make sure to choose a software that has been certified by a reputable security organization.
Cost: Employee management software can be expensive, so it is important have your budget in mind. Make sure to compare prices and features before making a decision.
Situational Capabilities: You may need a software than can cater to your specific situation. For example, perhaps they need experience with unionized businesses. Be up front about that as you send out your RFPs and make your evaluations.

READ MORE: The Interim CHRO Interview

Best HCM Systems

The “best” option is going to depend on your company, industry and exact situation. While we can’t choose one “best” software for you, here are some of the more popular cloud-based HCM systems (in no particular order) and a brief overview of each:

Workday is a human capital management software suite that provides a variety of features for managing employees, including payroll, benefits, recruiting and performance management.
SAP SuccessFactors is another HCM system suite that offers a wide range of features for managing employees, including recruiting, onboarding, performance management and compensation.
Oracle HCM Cloud is a suite that provides a variety of features for managing employees, including payroll, benefits, recruiting and performance management.
PeopleFluent is a software that offers a wide range of features for managing employees, including recruiting, onboarding, performance management and compensation.
Ultimate Software is a cloud-based HCM that provides a variety of features for managing employees, including payroll, benefits, recruiting and performance management.
Monday.com is a little different than the others in that its more commonly used for project management than tracking employee data. (Though you can use it for that, too.) It has a user-friendly interface and can be customized to your company’s needs. It’s also a cost-effective solution for businesses that need a cloud-based HCM system.

Are you ready to upgrade your HCM system, or perhaps implement one for the first time?

Private and public companies as well as private equity firms and their portfolio companies can all reap the benefits of choosing the right employee management softwares.

Fortunately, you’re not in this alone. The Business Builders’ Network is full of experts who have helped companies like yours with industry specific-decisions about their human capital management software.

If you’re ready to take the next step and want an exact-fit third party to accompany you through the process, from start to finish, contact our research and operations team.

We already know the best possible partners for your niche-specific needs, and we’ll connect you in less than 24 hours after our initial scoping call.

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Platform Modernization: App, Software Upgrade – IT Strategy

April 13, 2023 Brad Gerick

Platform modernization is the process of updating the infrastructure, architecture and features of existing platforms to bring them up to current standards. This makes the platform more efficient, secure and valuable.

Outdated platforms can be a major business liability, leading to performance issues, security vulnerabilities and compliance problems. Fixing this can help save money on operating costs and improve customer experience.

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App modernization can be a complex and time-consuming process, but it is essential for businesses that want to remain competitive. There are a number of different approaches, all depending on your specific needs and your business’s industry.

If you are evaluating your application modernization strategy, it is important to carefully consider your needs and goals. These should be formulated with time, costs and the impact it will have on your business in mind.

An experienced outside resource may be just what you need do make sure your applications modernization is done right, and we already know the perfect fit for your business. In the meantime, here’s a little more about the benefits of the process, and the steps that go into it.

The Need for Modernization

Platform modernization is essential to improving the customer experience. As expectations continue to rise, a modern platform allows for customization and a better overall experience. Here are some of data platform modernization trends and benefits.

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Platform Modernization Benefits

This crucial IT strategy step provides many benefits:

Enhanced Scalability and Sustainability: Modern platforms are designed with scalability and sustainability in mind, enabling them to handle increased user base and data load without incurring exorbitant maintenance costs. This feature makes them appealing to potential acquirers seeking platforms that can support their plans to grow.
Enhanced Security: Cybersecurity is especially important to companies these days because it protects against potentially catastrophic disruptions caused by cyberattacks. Modern platforms are more secure compared to older platforms. State-of-the-art security technologies and best practices are employed to safeguard against unauthorized access, data theft and destruction.
Cost Optimization: Known for their cost-effectiveness, modern platforms are designed to operate efficiently and utilize resources judiciously. This translates into reduced operating costs, which can be a significant advantage for potential buyers.
Enhanced User Experience: Prioritizing UX, modern platforms leverage cutting-edge technologies and user-centric designs to offer a superior experience compared to older platforms.
Innovation Potential: Modern platforms are synonymous with innovation, leveraging open standards and technologies to facilitate seamless integration of new features and functionalities.

READ MORE: IT Due Diligence for M&As

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Software Modernization Process

Assess your current platform. The first step is to assess your current platform and identify its strengths and weaknesses. This will help you to determine where improvements should be made as well as to prioritize them.
Develop a modernization plan. Once you have a good understanding of your current platform, you can develop a modernization plan. This should include goals, the steps you need to take and the resources you’ll need.
Migrate your data and applications. The next step is to migrate your data and applications to the new platform. This can be complex and time-consuming, so it is important to plan and execute carefully.
Test and deploy the new platform. As you get closer to a larger rollout, you need to test the new platform to make sure everything functions as expected. Deploying to production is a safe way to do this while monitoring performance.
Train employees on the new platform. Before clients or customers get their hands on the modernized platform, make sure your employees know it inside-out, upside-down. Not only do you want to make sure they can use it effectively, but they should also be able to help the end user with any issues. Training can be done through classroom instruction, online training or in an on-the-job setting. Whichever route you go, make sure it’s hands-on.
Even for apps or software that are for internal use only, you want to make sure key leaders understand how it functions before performing a wider rollout.
Support and maintain the new platform. Once the new platform is live, you need to maintain it. This includes providing support to users, fixing bugs and making security updates. True platform modernization is a never-ending process in today’s business environment.

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When going through this process, consider starting small. Don’t try to modernize your entire platform all at once. This will help you to build momentum and learn from your mistakes.

Related to that, you should also use a phased approach to reduce the risk of disruption and make the process more manageable.

Lastly, get buy-in from stakeholders before you begin to ensure everyone is on the same page.

Whatever your approach, be prepared for change and be willing to adapt.

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READ MORE: What is a Product Vision Roadmap?

Whether you’re a private or public company ready to upgrade an existing system, or a private equity firm looking to boost a portfolio company’s value, we’re here to help.

The BluWave-grade service providers in the Business Builders’ Network have extensive experience with platform modernization, no matter what your industry.

They understand the importance of upgrading not only with speed, but also quality, with the end user in mind all the time.

Our research and operations team will connect you with two or three best-fit options for your exact situation within a single business day. Reach out today to get your platform modernization project started ASAP with an experienced team of experts to guide you.

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