Sunsetting Preceda: Australian Businesses at a Crossroads

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Sunsetting Preceda: Australian Businesses at a Crossroads

Posted by: Ruth Hackel on
August 30, 2024

By Jamon Johnston – CEO and Founder of Solution Minds Consulting

As Preceda, a longstanding pillar in payroll management, approaches its end of life following its acquisition by Ceridian (now Dayforce) in 2021, Australian businesses find themselves at a pivotal crossroads. The discontinuation of support for this trusted enterprise software compels organisations to reassess their payroll and Human Capital Management (HCM) solutions. The pressing question: should they transition to Dayforce, the proposed successor, or explore alternative avenues?

The Challenge of Change

Navigating change is seldom straightforward, particularly when it involves critical operations like payroll. The retirement of Preceda presents both a challenge and an opportunity for businesses to upgrade to more modern, cloud-native systems. While Preceda has served faithfully over the years, it no longer meets the demands of today’s digital landscape. Solutions like Dayforce offer advanced features but require comprehensive reimplementation.

Having overseen over 600 enterprise software projects, I have witnessed the anxiety and uncertainty such transitions can provoke. Payroll systems are crucial for employee satisfaction and operational efficiency, making a seamless transition vital. Reports indicate that around 70% of digital transformation projects fail to meet their objectives, often due to inadequate planning and execution, underscoring the necessity for strategic alignment and expert guidance.

Businesses at a Crossroads

Across Australia, several businesses are confronting this transition head-on. Recently an organisation in the Healthcare sector was grappling with the need to transition from a legacy system engaged Solution Minds Consulting to plan and execute the project meticulously. This collaboration not only achieved significant cost savings and completed the deployment ahead of schedule but also allowed the business to implement scalable technology solutions, standardise processes, and enhance data integration—setting the organisation up for future growth.

In another sector, a technology company reassessed its internal HR and Payroll processes in anticipation of a new solution. With expert coaching, they mapped out existing workflows and pinpointed key improvements, such as modernising employee systems and reducing dependency on key personnel, to develop optimised future state ways of working. These enhancements improved operational efficiency and laid a strong foundation for future advancements.

These stories underscore the critical decisions organisations face as Preceda approaches its end of life and highlight the value of expert guidance. By leveraging the expertise of consultants, businesses can achieve more than initially envisioned, ensuring a transition that not only meets immediate needs but also paves the way for sustained growth and innovation.

Exploring Alternatives

Businesses must navigate a complex landscape of available alternatives. Here’s a look at some popular HCM and Payroll options for Australian and New Zealand businesses

  • For Small to Medium Enterprises:
    • Employment Hero
    • BambooHR
    • Definitiv
    • MYOB PayGlobal
    • iChris
    • Access MicrOpay

 

  • For Medium to Large Enterprises:
    • UKG / UKG Ready
    • Workday
    • Dayforce (successor to Preceda)
    • SAP SuccessFactors
    • OracleHCM
    • ADP
    • ELMO Cloud HR & Payroll

Key Considerations

Selecting the right system involves evaluating numerous decision points. Here are 13 critical considerations for businesses transitioning from Preceda:

  1. Current System Performance: Identify gaps or limitations in your current HCM system.
  2. Upgrade Path vs. Alternatives: Compare the pros and cons of moving to Dayforce versus other third-party options.
  3. Essential Features: Determine must-have features for your new HCM/Payroll solution.
  4. Scalability: Ensure the new system can grow with your business.
  5. Integration Capabilities: Check how well new platforms integrate with existing systems.
  6. Customisation Needs: Assess the level of customisation required.
  7. Cost of Ownership: Consider all costs, including licences, implementation, and support.
  8. Vendor Support: Evaluate the support and future roadmap for Australian customers.
  9. User Experience: Consider user satisfaction and ease of use.
  10. Regulatory Compliance: Ensure compliance with relevant regulations.
  11. Implementation Timeline: Understand the timeline and impact on operations.
  12. Industry Trends: Stay informed about trends that could affect your choice.
  13. ROI and Business Value: Assess the potential return on investment and business value.

Making the Right Choice

Transitioning from Preceda isn’t just about adopting new technology—it’s about aligning your payroll and HCM systems with your business strategy for long-term success. By carefully considering these factors and focusing on jobs to be done—such as optimising inventory levels, supporting growth, and improving customer experience—businesses can navigate this transition smoothly and strategically.

Expert Guidance

For more detailed guidance on navigating this transition, including comprehensive evaluations of various HCM and payroll solutions, businesses can refer to resources like our HR, Payroll, and Talent Management ERP Software Solutions Guides. Consulting with independent enterprise software experts offers invaluable insights and support during this critical transition.

About the Author: Jamon Johnston is the CEO and Founder of Solution Minds Consulting (SMC), a firm specialising in providing independent enterprise software advice and strategic guidance. SMC excels in helping businesses navigate complex digital transformations and achieve tailored solutions that drive growth and efficiency. Download the HR, Payroll, and Talent Management ERP Software Solutions Guide or book a free discovery call with one of SMC’s directors for personalised support.