Replatforming: Our Take on Forrester’s Analysis

Forrester's analysis reveals that replatforming is largely out of favor among B2C digital business leaders. The high costs and complexities associated with adopting new commerce solutions make it an unattractive option for many. Instead, businesses are focusing on extending the life of their existing commerce solutions. As one major retailer mentioned, “I can’t justify the costs and the business case to replatform.” This sentiment is echoed across the industry, where the emphasis is now on optimising and enhancing current platforms rather than switching to new ones. 

The Rise of Targeted Tech Changes 

Instead of large-scale projects to replatform, businesses are turning to smaller, targeted tech changes. These smaller improvements can deliver immediate results without the significant investment and disruption that comes with replatforming. This approach allows digital leaders to focus on specific areas of their commerce solutions that need enhancement, providing a more agile and cost-effective way to stay competitive. 

The Forrester report underscores the shift towards targeted technological interventions over wholesale replatforming initiatives. This approach resonates with our philosophy as a digital agency, emphasising the strategic deployment of focused tech changes to drive tangible business outcomes in the short term. However, it's essential to contextualise this strategy within the broader spectrum of digital maturity, recognising that the viability of targeted tech changes may vary depending on the underlying infrastructure. 

Forrester's evaluation of B2C commerce solutions reflects these market shifts. The scoring methodology in the Forrester Wave™ provides three potential scores: above-par (raised the bar), on-par (meets market needs), and below-par (weaker than others in the evaluation). This relative scoring system highlights how vendors stack up against each other in various criteria.

Core Commerce Functionality

Most vendors evaluated have strong core commerce functionality, including essential features like cart and checkout, practitioner user experience (UX), and payments. Additionally, order and inventory management, as well as content and asset management, are considered part of the core functionality. Vendors received a range of scores in these areas, indicating a competitive market where basic needs are generally well met.

Non-Core Functionality Trumps Core Functionality as a Differentiator

Where vendors tend to differ significantly is in their non-core functionality. These features, while not essential, can be critical differentiators for businesses. In fact, they seem to be the key factor in winning deals. Non-core functionalities might include advanced personalisation, AI-driven recommendations, and integration capabilities with other specialised solutions.

Forrester found that vendors only received the highest scores for non-core functionality if they could rival specialised, stand-alone solutions. This differentiation often influences purchasing decisions, as businesses seek unique features that can give them a competitive edge.

As a digital agency and consultant to a variety of B2B and B2C customers, our role extends beyond mere implementation to strategic partnership and advocacy for our clients. Considering the Forrester findings, we advocate for a proactive approach that involves:

Assessment and Deprecation of Legacy Systems: A legacy system is any outdated computing system, hardware or software that is still in use. Identifying areas within legacy systems that impede growth and negotiating adjusted pricing or phased deprecation strategies. Deprecating outdated systems can streamline operations and reduce costs. When doing so, businesses should negotiate adjusted pricing with their vendors to reflect the reduced usage of legacy components.

(Note: In the IT space, deprecation means that even though something is available or allowed, it is not recommended. In the case where something must be used, to say that something is deprecated means that its shortcomings or obsolescence are recognised.)

Add-On Functions for Short-Term Value

The key is to look for add-on functions or individual components from vendors’ larger portfolios that can deliver short-term value. Specialty, stand-alone offerings can complement existing solutions, providing enhanced functionality without the need for a complete overhaul.

Use Renewal Time to Negotiate Better Contracts

Renewal time is an opportunity to negotiate better terms with commerce vendors. Given the competitive nature of the market, vendors are motivated to retain clients and may offer more favorable pricing or additional features to ensure continued partnership.

Stay Upto Speed on Vendor Updates

Commerce vendors are continually updating their solutions to retain clients. Staying informed about these updates can help businesses leverage new features and improvements, ensuring their commerce solutions remain competitive and effective.

Communicate Your Needs

While these companies update their roadmaps every year, it’s important to make your voice heard! Identify unique areas of support or specific requirements you’d like to have and provide feedback and suggestions to your account representatives or customer support regularly. If enough customers express the same requirement, these business needs might just be addressed in the next round of upgrades

As digital agencies, understanding these trends is crucial. It allows us to better advise our clients on the most effective strategies for their unique needs, helping them to make informed decisions that align with their business goals. In this dynamic market, staying agile and adaptable is key to sustained success.

While for some companies it might be economically and strategically interesting to  optimize their current systems, we must recognize that a significant portion of the market remains constrained by legacy infrastructure and likely will need to replatform. Outdated systems are often impediments to growth, hinder agility, scalability, and adaptability to evolving consumer demands. For these growing companies, the need to replatform and migrate away from legacy systems persists.  However, it’s crucial to weigh the risks and benefits of migrating to another platform. If you are doubting the capability of your current platform to keep up with your growing company, here are a few signs that confirm you might need to look for a different solution:

• Your Store can’t handle Traffic Spikes: A study by Gartner in 2014 showed that the average cost of downtime is $5,600 per minute.  According to more recent research, the average cost of downtime can be as high as $9,000 per minute for large organizations. If your site can't handle traffic surges, consider replatforming to avoid significant losses. 

• Implementing New Features is Frustrating: Is your team struggling with updates and new features? A more flexible platform can streamline these processes and foster innovation. 

• Rising Total Cost of Ownership: Increasing maintenance and operational costs indicate inefficiency. Switching to a cost-effective platform can save money. 

• Non-Responsive Store: With mobile usage on the rise, a non-responsive site can hurt customer experience and conversions. Ensure your platform works seamlessly on all devices. 

• Security breaches: Security breaches can be devastating to you and your customers. It can often lead to a breakdown in customer trust and loyalty. If your provider lacks robust security measures, replatform to protect your business and customer data. 

• Usability Complaints: Frequent complaints about usability across your website or webshop signal a significant issue with your system that needs to be addressed. A user-friendly platform can enhance customer satisfaction. 

• Poor Admin Panel: An inefficient admin panel wastes time. A platform with a well-designed interface is an underrated asset to productivity and operations. 

• Compromised Sales and Marketing: If your platform limits your sales and marketing efforts, upgrading can provide the necessary tools and integration capabilities. 

• Competitors Outshine You: Falling behind competitors in your category indicates your platform might be holding you back. Stay competitive with the latest technologies and trends. 
     

Conclusion 

In conclusion, while the Forrester Wave™ evaluation provides valuable insights into the evolving landscape of B2C commerce solutions, it's essential to interpret these findings through the lens of individual business realities. For many enterprises, the journey towards growth remains ongoing, and digital agencies play a crucial role in guiding and facilitating this transformative process.  

As we navigate the complex terrain of digital commerce, our commitment to innovation, agility, and client-centricity remains unwavering, ensuring that businesses can thrive in an increasingly competitive landscape.   

The trend away from replatforming signifies a shift in how businesses approach their digital commerce strategies. By focusing on targeted tech changes and optimising existing platforms, B2C digital leaders can achieve cost-effective, incremental improvements that drive results. Forrester’s analysis provides valuable insights into the current state of commerce solutions and offers practical advice for businesses looking to navigate these complex topics.