Investing in Software vs. Strategy — The Ultimate Guide
Introduction: Investing in Software vs. Strategy
(Why KMUs Overspend and Underserve)?
Are you buying tools to fix problems… or buying time to avoid them? Investing in Software vs. Strategy sets the terms: strategy first, software second.
The Cost Trap Most SMEs Don’t See — Investing in Software vs. Strategy
Do your subscriptions reflect your goals—or your FOMO?
Businesses are drowning in licences that they seldom use. Zylo’s 2024 SaaS Index shows companies use 49% of their licensed software. They also have double-digit duplication in areas like project management and collaboration. That’s not optimisation—that's waste. Zylo
Hidden drag: Shadow IT—apps bought without IT—accounts for 30–40% of IT spend in large orgs, a signal SMEs should heed. Auvik
FinOps reality: For the second year in a row, “managing cloud spend” tops organizations’ challenges (Flexera 2024). flexera.com
If half your stack sits idle, what’s the ROI? This is why Investing in Software vs. Strategy is the only responsible lens.
Table of Content: Investing in Software vs. Strategy
A Simple Operating Model (4.5 Steps) for Investing in Software vs. Strategy
What if you bought software only after the process works on paper?
1) Outcomes > Features (Define the win) — Investing in Software vs. Strategy
In 90 days, we want X metric to improve by Y% because of the Z process.
Tie every licence to a KPI owner and a weekly metric.
If a tool has no owner or KPI, it’s a candidate for cancellation.
Why it works: AI adoption surged (McKinsey), but returns flow to teams that embed tools into defined business functions, not experiments. McKinsey & Company
Who owns the KPI that your next app is meant to influence?
2) Process First, Tool Second — Investing in Software vs. Strategy
Map the process in a doc or on a whiteboard first.
Run it manually for 2 weeks.
Identify the bottleneck; buy only the tool that removes that step.
Could you achieve 80% of the value with tools you already have?
3) One-in, One-out Procurement — Investing in Software vs. Strategy
Before adding a tool, list overlaps across your stack (many teams own 2–3 similar apps). Zylo shows rampant duplication. Zylo
Set a rule: No duplicate categories (e.g., one PM tool, one chat, one DAM).
Which app would you keep if you had to pick one today?
4) 90-Day Pilot, or Cancel — Investing in Software vs. Strategy
Run new tools as time-boxed pilots with a success scorecard.
At day 90: adopt, renegotiate, or remove.
Need monthly active users and workflow usage screenshots.
If a tool vanished tomorrow, which outcomes would experience significant harm?
4.5) Governance Lite — without bureaucracy — Investing in Software vs. Strategy
Keep a single spreadsheet: owner, purpose, cost, renewal date, and KPI.
Review it monthly in a 15-minute ops huddle.
Kill zombie licences (no logins in 30 days).
Do you have one place where your stack—and spend—are visible?
The AI Reality Check for SMEs — Investing in Software vs. Strategy
Are you rushing to gen-AI before you’ve set up docs, CRM, or analytics?
A recent EU SME study by Qonto and Appinio shows many small businesses use AI without solid digital foundations. This can lead to disappointment in return on investment (ROI). Reuters
Start with searchable knowledge (Docs/Drive/Notion), a clean CRM, and email automation.
Layer gen-AI on top of stable processes, not chaos.
Remember: automating a broken process speeds up the mess.
Could your AI pilot pass a 90-day value test tied to one KPI?
Sustainable fashion brand mINTIMONKS - Stickerei Wien
What the Numbers Say (So You Don’t Have to Guess) — Investing in Software vs. Strategy
How much money sits unused in your stack?
49% of provisioned SaaS licenses aren’t used; duplication is rampant. Zylo
Managing cloud spend is the #1 challenge again in 2024. flexera.com
Shadow IT eats 30–40% of tech spend; visibility is a must. Auvik
AI use grows more beneficial when tools are part of clear functions (McKinsey). McKinsey & Company
What could a 10–20% cut in tool spending fund? It could support content, training, or customer success.
Further Readings: Investing in Software vs. Strategy.
Sustainable Investing Strategies 2025: How to Build Wealth with Purpose?
Why Most Startups Waste Money on AI tools and Software Tools — and How to Choose What Actually Works
“Software doesn’t fix a broken process — it only makes the chaos run faster.” — Vanya Sol, Mintimonks
A 7-Day Playbook to Reclaim Budget — Investing in Software vs. Strategy
Do you want the results in a week?
Day 1–2: Export billing from all vendors; build the one source of truth sheet.
Day 3: Tag duplicates by category; shortlist consolidation targets.
Day 4: Pull last 30-day logins; flag unused seats.
Day 5: Map three core processes: lead generation, fulfilment, and support. Identify where current tools work well.
Day 6: Cancel or right-size 2–3 items; set an owner and KPI for each remaining app.
Day 7: Announce the 90-day pilot rule and the monthly 15-minute tool huddle.
If you had to prove ROI for every tool by Friday, which ones survive?
Sustainable fashion brand mintimonks - Stickerei Wien
“Technology is only as smart as the strategy that drives it.” — McKinsey & Company, Digital Strategy Insight 2024
Further Readings: Investing in Software vs. Strategy
Top Software Platforms You Need to Succeed as a Small Business in 2025.
Summary: Investing in Software vs. Strategy
Tools don’t create outcomes; processes do. Licence waste, shadow IT, and rushed AI adoption are symptoms of skipping strategy.
Focus on Software vs. Strategy:
Define clear outcomes.
Run a pilot using KPIs.
Join efforts with determination.
Govern with a light touch.
The Author: Vanya Sol
Vanya Sol
Written by Vanya Sol, founder of Mintimonks. I help conscious brands design systems that scale—without losing their soul.
Products Featured In This Blog: Investing in Software vs. Strategy
Frequently Asked Questions : Investing in Software vs. Strategy
How do we know a tool is worth it?
Tie it to one KPI and a 90-day pilot. No impact, no renewal.
Should SMEs pause AI?
No—prioritise foundations (docs, CRM, analytics) and run targeted pilots. Reuters
What’s the fastest way to cut spend?
Kill duplicate categories and reassign unused licences (Zylo data). Zylo
Do we need a tool committee?
No—a 15-minute monthly huddle and a single source of truth sheet.
How do we stop shadow IT?
Publish a simple request path; centralise purchasing; audit quarterly. Auvik
Related Readings: Investing in Software vs. Strategy
Ready to swap tool chaos for clarity? Book a 30-minute Stack Audit with me. We’ll find quick wins, cut waste, and set a 90-day roadmap—so Investing in Software vs. Strategy finally pays off.
Sources (mentioned inline)
Zylo, 2024 SaaS Management Index (license usage 49%, duplication). Zylo
Flexera, State of the Cloud 2024 (managing cloud spend = top challenge). flexera.com
Gartner via Auvik (shadow IT 30–40% of spend). Auvik
McKinsey, State of AI (adoption across functions). McKinsey & Company
Reuters/Qonto–Appinio (SMEs adopting AI without the basics). Reuters
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