What is tool sprawl, and when does it start costing you?
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What is tool sprawl, and when does it start costing you?

Every tool works. Nobody is sure which one holds the right number.

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CategoryData foundations
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The Monday meeting opens with two revenue figures. One came from the dashboard tool, the other from a spreadsheet exported from the CRM. The next 20 minutes go on working out which one is right.

Every tool involved works. That is what makes tool sprawl hard to spot, and why it tends to be noticed late. This piece defines it, shows when it starts costing money, and sets out the ways to consolidate.

What tool sprawl is

Tool sprawl is a build-up of overlapping apps that each hold part of a process, with nothing connecting them. New tools get added to solve the problem in front of a team. The old ones are not retired, and the integrations between them are never built.

It starts with a legitimate need each time. One team needs a faster way to approve content, so it adopts a workflow tool. Another needs better reporting, so it subscribes to a dashboard platform. Each decision makes sense on its own. Nobody keeps a map of what connects to what.

Two patterns come up again and again. Approvals run in a workflow tool such as Kissflow, but the edge cases need logic it does not have, so a spreadsheet grows beside it. Reporting runs in Looker, but there is no tool to act on what the report shows, so the follow-up happens in Slack or email.

Why it keeps growing

Sprawl grows when the approved stack does not cover the work and there is no fast path to something better. Teams adopt their own tools to keep work moving. The integrations that would join those tools need engineering time, and that time is already committed to the product.

Each new tool brings relief for one team and three new costs for everyone else: duplicate data entry, permissions that differ from tool to tool, and no audit trail across the whole workflow. Some of those tools are never approved at all, which is where sprawl meets shadow IT.

When it starts costing you

Sprawl costs something from the first duplicate record. It becomes worth fixing when these signs appear:

  • The same data is typed in twice. An order entered in the e-commerce platform is re-keyed into the ERP, and every re-key is a chance for an error.

  • Meetings are spent reconciling numbers. Two reports disagree, and nobody can say which system holds the correct version.

  • Approvals stall. Requests wait because it is not obvious which system they belong in.

  • Onboarding takes weeks. New hires spend their first month learning which tool does what.

  • Access is managed tool by tool. Someone who leaves keeps access to the tools nobody remembered to check.

  • Workflows leave with people. A colleague's custom automation stops working when they do, because it was never documented or handed over.

The organization feels slower even though it has added tools. The work itself has not changed. The path to finish it has become longer and less reliable.

Sprawl also hides where work stalls. When a process runs across six tools, no single one shows its state. Visibility debt covers that cost in detail.

Ways to consolidate

There are three common approaches.

Move everything into one product

Pick a single platform and migrate every team onto it. This gives one place to look. It also forces teams off tools that work well for their own task, and the migration is long. It suits a small stack where one product genuinely covers every workflow.

Connect the tools to each other

Add point-to-point integrations so data moves between tools without re-keying. This removes the duplicate entry quickly. Each new connection is one more thing to maintain, though, and the process still has no single view.

Build one internal tool on top of the existing systems

Build a single internal tool that reads from and writes to the systems the teams already use, instead of replacing them. Pre-fill forms from those systems, show the related data on one screen, and automate the handoffs people used to do by copying. As the console takes over each job, the redundant tools can be retired one at a time.

Our view

We recommend the third approach for most teams with sprawl, because it removes the re-keying and gives one view. Nobody is forced off a tool that still does its job. The data stays in the systems where it already lives, so nothing has to be migrated before the first improvement.

Greenly went from three disconnected admin tools to one operations console. Onboarding an analyst went from a fortnight to an afternoon. At Saxo Bank, Launchpad connected the bank's existing tools into one Retool platform across four markets.

Start with the workflow that carries the most risk or takes the most manual time. Operations should choose it, because they know where the time goes. Engineering builds the connections, and the product owner decides when a redundant tool is retired. Show the team the time saved on their most repetitive task first, because that is the change people notice. When your tools work and your operations still don't covers how to find the handoffs worth fixing first.

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John Miniadis

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