Kinetic Data Blog

Breaking the Maintenance Cycle: Shifting IT Budget from Operations to Innovation

Written by Kinetic Data Team | December 23, 2024

Most organizations pour their IT budgets into maintaining customizations built within their SaaS platforms. Recent Deloitte research shows that 56% of IT spending goes toward maintenance rather than growth or innovation. This creates a cycle that traps organizations in the past while their competitors move forward.

Why Platform Customizations Hold Organizations Back

Organizations often customize their SaaS platforms to meet specific business needs. They modify ServiceNow to handle unique request workflows, tweak Salesforce to match their sales processes, or adapt Workday to their HR requirements. Each customization seems necessary at the time, but the long-term costs are significant.

These platform-specific customizations require specialized developers who understand each platform's unique architecture and limitations. Companies must invest in training and certifications for these platforms, often paying premium rates for developers with specific platform expertise. When platforms update their software, customizations can break, requiring additional development work just to maintain existing functionality.

The problem compounds over time. As organizations build more customizations into their platforms, they become increasingly dependent on platform-specific expertise. This makes it harder to adapt to change, whether that means switching platforms, updating processes, or implementing new technologies.

A Better Way Forward: The Experience Layer

Rather than embedding business logic and user experiences within each SaaS platform, forward-thinking organizations are moving their customizations to a platform-agnostic experience layer. This approach lets them build using standard development practices and modern frameworks that any skilled developer can work with.

Think of the experience layer as a universal translator for your business processes. Instead of speaking ServiceNow, Salesforce, and Workday separately, you create one consistent language that works across all your systems. This means:

  • Your developers can write code using familiar languages and frameworks instead of learning proprietary platform-specific tools.
  • Your users get a consistent experience regardless of the underlying systems.
  • Your organization maintains flexibility to change backend systems without disrupting user experiences.
  • Your maintenance costs decrease as you reduce dependency on platform-specific expertise.

Starting Small, Thinking Big

Moving to an experience layer doesn't require a massive overhaul of existing systems. Organizations can start with their most problematic customizations - the ones that require frequent updates or cause the most maintenance headaches. By tackling these high-impact areas first, they can demonstrate value quickly while building momentum for broader changes.

For example, one organization began by moving their employee onboarding process to an experience layer. Previously, this process required customizations in their HR platform, IT service management system, and identity management tools. By creating a unified experience layer for onboarding, they reduced maintenance complexity while making the process smoother for both HR staff and new employees.

Freeing Resources for Strategic Innovation

When organizations spend less time maintaining platform customizations, they can focus on initiatives that drive real business value. This might include:

  • Implementing AI to automate routine tasks and enhance decision-making
  • Creating standardized tools and processes that work across departments
  • Building data analysis capabilities that provide actionable insights
  • Developing new digital services that improve customer experiences

The key is that these initiatives can now use modern development approaches and technologies rather than being constrained by platform-specific limitations.

Measuring the Impact

Success in shifting from maintenance to innovation shows up in several ways:

  • Development teams spend more time building new capabilities instead of maintaining existing ones.
  • New features and processes can be implemented more quickly using standard development practices.
  • Organizations can respond more flexibly to changing business needs.
  • IT budgets shift from maintaining the status quo to driving business growth.

Looking Forward

Breaking free from the maintenance cycle isn't just about reducing costs - it's about creating capacity for innovation. By moving customizations to an experience layer, organizations can build for the future instead of being tied to decisions made in the past.

The technology landscape will continue to evolve. New platforms will emerge, existing ones will change, and business needs will shift. Organizations that build flexibility into their architecture through an experience layer approach will be better positioned to adapt and thrive in this changing environment.


Sources:

  • Deloitte IT Spending Analysis 2024
  • MuleSoft Connectivity Benchmark Report 2024
  • IDC Insight Intelligent Technology Report 2023
  • McKinsey Digital Transformation Index