What is a best-of-breed solution?<\/h3>\n\n\n\n
Best-of-breed technology refers to selecting the best software tool available for a specific business function, rather than relying on a full-suite system that covers multiple functions under one umbrella. While this approach offers the promise of superior functionality in each area, for some firms, the notion of breaking up their tech stack can be daunting.<\/p>\n\n\n\n
This sentiment is echoed across the industry, as many firms aim for best of breed solutions but struggle with the reality of implementation.<\/p>\n\n\n\n
The reality of implementation: What are the key challenges to a best-of-breed approach?<\/h3>\n\n\n\n
While 93% of firms may aspire to implement a best of breed strategy, according to a recent poll by Silverfin, the actual application often falls short. For example, while 55% of firms prefer DocuSign for e-signing, 28% still rely on integrated suite solutions. Similarly, 30% use Slack for internal communications, but 33% stick with suite-embedded tools. These statistics highlight the gap between intention and reality, posing the question: Why is this happening?<\/p>\n\n\n\n One of the primary challenges is cost. Best of breed technology often come with multiple licensing and subscription fees, which can add up quickly. While these tools offer superior features, the cost efficiency of an all-in-one solution is hard to ignore, especially for smaller firms. <\/p>\n\n\n\n But as Richard Sergeant said, \u201cWhen you provide more value through integration and time-saving – because things work better together – that softens the financial blow.\u201d This underscores the need for careful consideration and optimisation of tech investments. <\/p>\n\n\n\n Managing multiple vendors for different technology needs can be a challenge, logistically. This is particularly true for smaller firms, which may lack the resources to juggle numerous contracts and service agreements. Sarah shared her own experience: \u201cWe\u2019re having to speak with multiple vendors, go through multiple selection phases, and negotiate multiple contracts. It does come with challenges. But as a firm of our size, we can achieve the return on investment by going through those additional processes to find the best for our needs.\u201d<\/p>\n\n\n\n Reflecting on her experience, Sarah noted that her firm previously maintained \u201cquite passive relationships with vendors\u201d because the technology and stack were already well-established and integrated into their business operations. However, as Shaw Gibbs has grown and the need for more robust and scalable solutions has become more critical, she emphasises the necessity of fostering genuine partnerships with vendors.<\/p>\n\n\n\n Sarah highlights how the firm required more frequent and engaged interactions with vendors as the business has grown. \u201cI will speak with Silverfin at least once a week\u201d, she says, which has become invaluable. She also underscores that most accountancy practices are still managed by accountants who typically lack formal training in change management, further emphasising the need for strong, collaborative relationships with technology providers. This proactive approach to vendor management is essential for ensuring that the technology not only supports day-to-day operations but also scales with the business\u2019s growth and its evolving needs.<\/p>\n\n\n\n Integration is another challenge for some accounting firms. While best of breed solutions offer specialised functionality, it\u2019s important to ensure seamless integration between different systems. Phil raised an important point: \u201cIf we can make software work better together, can that deliver better value for the firm, not only in terms of the cost of technology, but also in terms of its usability and adoption across the firm?\u201d<\/p>\n\n\n\n Sarah is optimistic, noting that progress is being made in the right direction. \u201cIt\u2019s better. It\u2019s evolving in the right direction. And we\u2019ve really valued how closely Silverfin has been willing to work with other partners. Integration is utterly fundamental to us, especially across multiple offices.\u201d<\/p>\n\n\n\n The evolution of these partnerships is crucial, as it allows for better collaboration and more effective data flow between systems. Yet, the pace of software improvement varies, with best of breed vendors typically innovating faster than full suite providers, who are often saddled with a lot of legacy tech to maintain. <\/p>\n\n\n\n For accountants, this means pushing for stronger integration capabilities from all vendors, ensuring that the tools they invest in deliver true value by working effectively together. This not only enhances operational efficiency but also justifies the inevitable price increases that come with new technologies, making the case for investing in integrated, scalable solutions even stronger.<\/p>\n\n\n\n “Investing time from the outset, especially from leadership, is crucial. We spent time going to each location working with Silverfin, explaining why we\u2019re adopting new technology, not just announcing it. This approach has been met with genuine enthusiasm, despite the significant changes we\u2019re asking of people.” <\/em>Sarah Gardener, Partner at Shaw Gibbs<\/p>\n<\/blockquote>\n\n\n\n Each new addition to the tech stack comes with its own learning curve, requiring effective change management. Leaders in firms must clearly communicate the benefits to staff and ensure that they have solid training programmes in place. As Phil said, \u201cSometimes, we undersell the \u2018why\u2019 when we\u2019re launching and rolling out new technology.\u201d<\/p>\n\n\n\n Sarah highlighted the importance of leadership in this process: \u201cInvesting time from the outset, especially from leadership, is crucial. We spent time going to each location working with Silverfin, explaining why we\u2019re adopting new technology, not just announcing it. This approach has been met with genuine enthusiasm, despite the significant changes we\u2019re asking of people.\u201d<\/p>\n\n\n\n This shows that effective change management requires collaboration and clear internal communication that explains the reason for investing in new technology. These reasons should be in alignment with the firm\u2019s strategic goals as this will ensure a smoother transition and greater buy-in from all levels of the organisation.<\/p>\n\n\n\n Despite the challenges, a best of breed approach offers significant advantages, particularly in terms of flexibility, scalability and streamlined mergers and acquisitions.<\/p>\n\n\n\n One of the primary benefits is the ability to meet diverse client needs. By selecting specialised tools, firms can offer customised, client-centred services rather than being limited by a one-size-fits-all solution. Richard pointed out that \u201caccountants are still very client-led. You have to adapt to the needs of your clients, which means having a few options to suit different clients and wrap your service around them.\u201d<\/p>\n\n\n\n Richard also stressed that the idea of a \u201csingle house option\u201d is no longer viable, especially given the diverse and evolving needs of clients. This further underscores the importance of having a range of tools that can be tailored to fit the unique demands of each client. This flexibility is crucial in today\u2019s environment, where the amount of software that firms need to adopt has increased significantly, making it essential to choose tools that best align with their practice and client needs.<\/p>\n\n\n\n Sarah goes further by highlighting the complexities involved in managing a large firm with different technology stacks due to mergers and acquisitions, which adds another layer of complexity that a best-of-breed approach can help address. This approach allows her firm to integrate and adapt different technologies that best meet their specific needs, reinforcing the idea that flexibility is key to successfully managing diverse client requirements.<\/p>\n\n\n\n \u201cAccountants are still very client-led. You have to adapt to their needs.”<\/em> Richard Sergeant, MD at Principle Point<\/p>\n<\/blockquote>\n\n\n\n Best of breed solutions allow firms to scale their technology stack as their needs evolve. This flexibility is crucial in a rapidly changing business environment. Sarah expressed concern about relying on a single full-suite solution: \u201cIf there was one full suite option available, I would be concerned about the risk to us as a business, of putting all our eggs in one basket.\u201d<\/p>\n\n\n\n While larger firms like Shaw Gibbs require robust technology stacks to manage complex operations, smaller firms also need tailored solutions that can evolve with their business. This scalability is crucial, as it enables firms to grow confidently, knowing that their technology will evolve alongside them, providing consistent value and support throughout their expansion journey.<\/p>\n\n\n\n Best of breed solutions, often built on modern, flexible cloud technology, can make firms more attractive targets for mergers and acquisitions. They offer easier integration and alignment with partners\u2019 systems compared to more transitional full stack systems. As Sarah pointed out, \u201cFirms that have adopted cloud technology indicate that, culturally, they\u2019re already starting to think about going on the journey, and it will make that integration and the conversations with us much easier.\u201d<\/p>\n\n\n\n By selecting the best individual software solutions for specific needs rather than relying on a single, unified system, a firm can more easily adapt to the diverse technology stacks of the firms it acquires. This flexibility makes it possible to integrate different systems more efficiently and ensures that the best tools are available for each aspect of the business, regardless of the original technology used by the acquired firm.<\/p>\n\n\n\n Sarah goes on to note that this not only simplifies the M&A process but also helps to maintain continuity in service delivery, as firms can continue using their preferred tools while gradually aligning their tech stacks under the new parent company.<\/p>\n\n\n\n \u201cWe take a very software-agnostic approach to mapping out our operating model and what we want to achieve, investing as much time in that as the software selection process itself.\u201d<\/em> Sarah Gardener, Partner at Shaw Gibbs<\/p>\n<\/blockquote>\n\n\n\n While the best-of-breed approach offers significant advantages, it\u2019s important for firms to evaluate whether this strategy aligns with their goals, resources and growth trajectory. As Sarah suggests, the key is not just in choosing the most advanced or feature-rich software but in ensuring that the technology fits the firm\u2019s specific needs: \u201cWe take a very software-agnostic approach to mapping out our operating model and what we want to achieve, investing as much time in that as the software selection process itself.\u201d<\/p>\n\n\n\n Silverfin, as a best-of-breed solution, exemplifies the flexibility and scalability that many firms require, particularly in handling diverse client needs and supporting business growth. However, it\u2019s essential to recognise that this approach might not be the right fit for every firm at every stage. Watch the webinar on-demand:<\/p>\n\n\n\n![\"\"](\"https:\/\/silverfin.com\/wp-content\/uploads\/2024\/08\/Copy-of-Best-of-Breed_visual-assets-1200-x-630-px-1-1024x538.png\")
<\/figure>\n\n\n\n1. Cost concerns<\/h3>\n\n\n\n
2. Complexities of managing multiple vendors<\/h3>\n\n\n\n
3. Integration challenges<\/h3>\n\n\n\n
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4. Change management<\/h3>\n\n\n\n
The benefits of best-of-breed<\/h2>\n\n\n\n
1. Flexibility to meet diverse client needs<\/h3>\n\n\n\n
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2. Scalability<\/h3>\n\n\n\n
3. Streamlined mergers & acquisitions<\/h3>\n\n\n\n
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Best-of-breed or best-of-need?<\/em><\/h3>\n\n\n\n
The first step is for firms to thoroughly understand their requirements and operational challenges. By doing so, they can make informed decisions that align their technology choices with their business objectives. The focus should always be on finding the \u201cbest of need\u201d<\/strong> technology that truly supports their goals.<\/p>\n\n\n\n