What is the Synchronicity Gap?

In today's fast-paced business environment, the ability of a company to scale can often be hampered by the limitations of its software and technology. If a firm’s software does not keep pace with the rate at which the business expands and operational needs evolve, it creates a gap that can significantly impacts efficiency, profitability, and overall long-term success. At Synetec, this disparity between business growth and software capability is something we refer to as the ‘synchronicity gap’.

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In this two-part series, we explore the synchronicity gap, and how the development of custom software and support on delivery for internal teams from specialist providers can help bridge the gap.

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Understanding the Synchronicity Gap

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As a business evolves, the demands on its proprietary software increases. However, these systems don’t always adapt at the same rate, which then creates a synchronicity gap. This gap can manifest in several key areas:

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1. Capability: The software cannot perform the required tasks.

2. Scalability: The software serves outdated needs and cannot keep up with development speed.

3. Compatibility: The software is siloed from other systems and people within the business.

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The Cost of Disparity

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If not addressed the synchronicity gap naturally gets bigger over time, and the speed at which a software solution can be developed to meet the business change can heavily impact the business in terms of time, money and opportunity cost! If you don’t look after your customers, somebody else will! According to a 2023 report, businesses spend an average of 25% more time on manual processes due to inefficient software systems. Specifically, employees may spend up to 10 working hours per week on tasks that could be automated, which adds up to 520 hours per year per employee (McKinsey). Businesses also lose profit through errors and wasted resources. A study by IDC found that companies lose 20-30% in revenue each year due to inefficiencies in their processes (Forbes).

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A synchronisation gap can also be costly for business opportunities, due to lack of speed and capability, and ultimately reputation. In 2023, 42% of businesses reported that outdated software has hindered their growth by limiting their ability to respond quickly to market changes and customer needs (McKinsey). Poor performance and service can then lead to a loss of client trust and damage the company’s reputation. As many as 60% of businesses acknowledged that inefficiencies and poor system performance were critical issues that impacted their reputation and client trust (McKinsey).

The Right Software Changes Everything

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The synchronicity gap is a critical challenge for both growing and more mature businesses. The longer a business has been in operation, the bigger the gap and this can be even harder to manage. For businesses aiming to thrive in a competitive market, synchronised and adaptable software solutions are not just advantageous but essential - not only for enhancing efficiency, reducing manual workload, and avoiding costly errors but also for responding swiftly to market changes and ultimately looking after customers and their demands to maintain their trust.

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In the next part of this series, we will delve deeper into how partnering with a specialised provider like Synetec can help your business close the synchronicity gap and pave the way for sustainable growth and innovation.

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References:

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https://www.mckinsey.com/~/media/mckinsey/business%20functions/people%20and%20organizational%20performance/our%20insights/the%20state%20of%20organizations%202023/the-state-of-organizations-2023.pdf

https://www.forbes.com/sites/rodgerdeanduncan/2023/03/28/drowning-in-unnecessary-work-heres-your-life-preserver/