Written by Jeff Gusdorf, CPA: Jeff is a Principal in the Brown Smith Wallace’s Consulting Group. He is the managing consultant and is responsible for IT strategic consulting, software research and evaluation. Jeff has more than 20 years’ experience as a financial manager and technology consultant in the manufacturing, distribution and service sectors.
I attended a program presented by a local Microsoft partner this week. The partner did a very nice job of hosting this presentation; rented a very nice meeting room at a local restaurant, spent a ton on food, had Microsoft representation, gave away a nice door prize. Attendance wasn’t quite what they wanted but it was still a nicely attended event. But I think they missed an opportunity to make the needed impact on the attendees to move them forward in their software selection process.
Microsoft sells four ERP packages under the Dynamics brand and each product occupies a certain niche as explained by this partner: AX is the high end package, NV is a mid-tier product that is easily customized, GP is another product for mid-sized companies that have both distribution and manufacturing requirements and SL is for companies with project management needs.
Each product was demonstrated for 30 minutes. Each demonstration focused on the role-based model that Microsoft has incorporated into their software. Users are assigned a profile based upon their role in the organization and each role has a set of tasks already configured so that the user can be more productive more quickly every day. Each user can customize their start up screen with menu options, alerts, fact boxes and fast tabs. Great – but did I have to see the same thing 4 times? Did 75% of the time have to be devoted to showing the same functionality again and again?
This brings me to my point – what’s the point? What do you need to see in order to decide that this software package could/should be considered by your company as a potential solution? Is it replenishment? Order processing? e-Commerce? Make a list of the business processes that are critical to your business and communicate that to the software vendor. Reporting, Dashboards and Business Intelligence are the whip cream and cherries of software demos. It’s sweet and looks appealing but not very filling. Make sure you know what the point of the software demo is before you invest your time and the software vendors time.
Monday, April 12, 2010
Thursday, April 1, 2010
Part 2 - Successful Software Selection "Getting It Right The First Time Is All About People"
This Whitepaper will be broken into two sections. To read it in its entirety visit our Media Center for the Getting It Right the First Time Is All About People PDF.
Recap:
Yesterday People Factor One (Who Makes The Selection?) and People Factor Two (Creating "Buy-In" For Change) was presented.
People Factor Three: Did you ensure the converted data is accurate and complete?
The third area relates to moving data from the old system to the new one. Don’t create an opportunity to fail by failing to follow-through with the conversion.
We’ve found the best thing to do is have a small group of employees and support personnel from the vendors do and test the conversion. Make sure the team has procedures in place to ensure that all of the data has been converted – check the simple things – compare the number of vendors, customers, outstanding invoices from one system to another.
Make sure everything is accurate. Develop checks and “hash” totals (total outstanding receivables, total open payables, etc. Audit the data before going live and you minimize problems. Find the problems before an existing customer cannot be found, or data is obviously wrong.
People Factor Four: Was there sufficient training and test time?
Finally, there is training and testing; more systems fail because companies underestimate the need to train their employees.
It does not matter how much the employees say they want the solution or how computer literate the staff may be, without a dedicated effort to train and test the system, you will fail.
The first two weeks with any new system are critical. If all of the time is spent fighting educational problems, you risk creating the perception that the new application is error prone, hard to learn, hard to use, not user friendly and probably the wrong choice.
Once that happens, it can be a fast death spiral into the ground. Users lose faith, and then they start to doubt the system, its capability and their ability to get any of the advantages promised by the sales people.
Here are a few hints to make sure you keep the training at a sufficient level.
First, if budgets are really an issue, try to negotiate a reduction in the total cost of training. Keep the courses and support that the vendor suggests but explore using CD or Web-based training instead of instructor-based training. This is much less expensive. Or have your best employees get trained and have them train other users. It is in your and the vendor’s best interest to make sure the implementation is smooth and successful. They want you to be a showcase site. That means, they will often work with you on the approach to and cost of training if you let them know how serious you are to do it right – the first time.
Second, set up a test environment. We call it a sandbox. Let everyone play on the system as they get trained. The positive effects of training are reduced by the square of the time in hours between the end of training and when they get to next use the system. That means that if after training a week goes by with no system use, about 50 percent of the training is lost. Make sure that there is not only a place to play on the system, but that there is time as well. Get temps to help with the everyday work so your best people can be trying out the new systems.
Run full days of activity against a subset of all accounts and inventory. Print out all of the reports and make sure you and your staff understand where and how the numbers show up. Test everything to make sure it is right for the way you want to use it before it is mission critical.
Looking For Help?
Successfully implementing a system is a big challenge. It is important that your team and the vendors’ consulting organization work together to achieve this goal. The important thing to remember is you are not alone – there are experts, like the members of our team, who have successfully done this before and who are willing to guide you through the process.
When it comes to the technology choices themselves, consider using a resource like our Distribution Software Guide at http://www.software4distributors.com/resource/default.aspx.
Also compare software packages side-by-side at http://www.software4distributors.com/evaluation/registration.aspx.
Recap:
Yesterday People Factor One (Who Makes The Selection?) and People Factor Two (Creating "Buy-In" For Change) was presented.
People Factor Three: Did you ensure the converted data is accurate and complete?
The third area relates to moving data from the old system to the new one. Don’t create an opportunity to fail by failing to follow-through with the conversion.
We’ve found the best thing to do is have a small group of employees and support personnel from the vendors do and test the conversion. Make sure the team has procedures in place to ensure that all of the data has been converted – check the simple things – compare the number of vendors, customers, outstanding invoices from one system to another.
Make sure everything is accurate. Develop checks and “hash” totals (total outstanding receivables, total open payables, etc. Audit the data before going live and you minimize problems. Find the problems before an existing customer cannot be found, or data is obviously wrong.
People Factor Four: Was there sufficient training and test time?
Finally, there is training and testing; more systems fail because companies underestimate the need to train their employees.
It does not matter how much the employees say they want the solution or how computer literate the staff may be, without a dedicated effort to train and test the system, you will fail.
The first two weeks with any new system are critical. If all of the time is spent fighting educational problems, you risk creating the perception that the new application is error prone, hard to learn, hard to use, not user friendly and probably the wrong choice.
Once that happens, it can be a fast death spiral into the ground. Users lose faith, and then they start to doubt the system, its capability and their ability to get any of the advantages promised by the sales people.
Here are a few hints to make sure you keep the training at a sufficient level.
First, if budgets are really an issue, try to negotiate a reduction in the total cost of training. Keep the courses and support that the vendor suggests but explore using CD or Web-based training instead of instructor-based training. This is much less expensive. Or have your best employees get trained and have them train other users. It is in your and the vendor’s best interest to make sure the implementation is smooth and successful. They want you to be a showcase site. That means, they will often work with you on the approach to and cost of training if you let them know how serious you are to do it right – the first time.
Second, set up a test environment. We call it a sandbox. Let everyone play on the system as they get trained. The positive effects of training are reduced by the square of the time in hours between the end of training and when they get to next use the system. That means that if after training a week goes by with no system use, about 50 percent of the training is lost. Make sure that there is not only a place to play on the system, but that there is time as well. Get temps to help with the everyday work so your best people can be trying out the new systems.
Run full days of activity against a subset of all accounts and inventory. Print out all of the reports and make sure you and your staff understand where and how the numbers show up. Test everything to make sure it is right for the way you want to use it before it is mission critical.
Looking For Help?
Successfully implementing a system is a big challenge. It is important that your team and the vendors’ consulting organization work together to achieve this goal. The important thing to remember is you are not alone – there are experts, like the members of our team, who have successfully done this before and who are willing to guide you through the process.
When it comes to the technology choices themselves, consider using a resource like our Distribution Software Guide at http://www.software4distributors.com/resource/default.aspx.
Also compare software packages side-by-side at http://www.software4distributors.com/evaluation/registration.aspx.
Wednesday, March 31, 2010
Part 1 - Successful Software Selection "Getting It Right The First Time Is All About People"
This Whitepaper will be broken into two sections. To read it in its entirety visit our Media Center for the Getting It Right the First Time Is All About People PDF.
Intro:
There is an old joke that says there are only two steps to software selection. Step one is to select a solution and step two is to throw it out. With forethought and a little effort – you can make a successful software selection, the first time, and skip step two altogether. The trick you see is all about people – it is your people who must participate in choosing a solution that meets your business needs and take ownership for its implementation and use.
People Factor One: Who Makes The Selection?
First and foremost is: “he (or she to be politically correct) who makes the decision is stuck with it.”
The best solutions include a team that represents all of the various levels of your business – from management, marketing and sales, purchasing, warehouse, logistics and finance. When you allow representation from multiple venues within the business you create a situation for success. When your selection team includes multiple voices the selection becomes a matter of pride -- everyone wants to participate in finding the best solution for the company.
In addition to creating “pride of ownership” a team consisting of a representative sample of end users will help distribute the selection burden by helping to define requirements – which will vary from department to department, attend demonstrations, call the references and be invested in the final selection.
People Factor Two: Creating “Buy-In” For Change
Another old saying goes: “the only person who likes change … is a wet baby.” We all resist change. New systems can to wreak havoc on our daily lives – introducing new procedures, changing why we do things the way we do – it can be pure torture and too often is, if allowed to be.
To succeed, make the selection and implementation a top priority. Let everyone know that the owners and top management are part of the team. Pick the most senior executive possible to lead the effort and make sure they take an active and very visible role throughout the project – give your employees a leader worth following.
For People Factor Three and Four, come back tomorrow.
Looking For Help?
Successfully implementing a system is a big challenge. It is important that your team and the vendors’ consulting organization work together to achieve this goal. The important thing to remember is you are not alone – there are experts, like the members of our team, who have successfully done this before and who are willing to guide you through the process.
When it comes to the technology choices themselves, consider using a resource like our Distribution Software Guide at http://www.software4distributors.com/resource/default.aspx.
Also compare software packages side-by-side at http://www.software4distributors.com/evaluation/registration.aspx.
Intro:
There is an old joke that says there are only two steps to software selection. Step one is to select a solution and step two is to throw it out. With forethought and a little effort – you can make a successful software selection, the first time, and skip step two altogether. The trick you see is all about people – it is your people who must participate in choosing a solution that meets your business needs and take ownership for its implementation and use.
People Factor One: Who Makes The Selection?
First and foremost is: “he (or she to be politically correct) who makes the decision is stuck with it.”
The best solutions include a team that represents all of the various levels of your business – from management, marketing and sales, purchasing, warehouse, logistics and finance. When you allow representation from multiple venues within the business you create a situation for success. When your selection team includes multiple voices the selection becomes a matter of pride -- everyone wants to participate in finding the best solution for the company.
In addition to creating “pride of ownership” a team consisting of a representative sample of end users will help distribute the selection burden by helping to define requirements – which will vary from department to department, attend demonstrations, call the references and be invested in the final selection.
People Factor Two: Creating “Buy-In” For Change
Another old saying goes: “the only person who likes change … is a wet baby.” We all resist change. New systems can to wreak havoc on our daily lives – introducing new procedures, changing why we do things the way we do – it can be pure torture and too often is, if allowed to be.
To succeed, make the selection and implementation a top priority. Let everyone know that the owners and top management are part of the team. Pick the most senior executive possible to lead the effort and make sure they take an active and very visible role throughout the project – give your employees a leader worth following.
For People Factor Three and Four, come back tomorrow.
Looking For Help?
Successfully implementing a system is a big challenge. It is important that your team and the vendors’ consulting organization work together to achieve this goal. The important thing to remember is you are not alone – there are experts, like the members of our team, who have successfully done this before and who are willing to guide you through the process.
When it comes to the technology choices themselves, consider using a resource like our Distribution Software Guide at http://www.software4distributors.com/resource/default.aspx.
Also compare software packages side-by-side at http://www.software4distributors.com/evaluation/registration.aspx.
Monday, February 22, 2010
Finally a rationale discussion of Cloud Computing
Through attending a webinar hosted by Safari Books Online from author, David Linthicum, titled “Cloud Computing and SOA Convergence in Your Enterprise,” we find that most of the Cloud Computing discussions take on the overtones of the Mac vs PC debate. Those who are in favor of Cloud Computing and Software as a Service view it as the answer to all problems and anyone who disagrees with them is a luddite or worse. Those who are against Cloud Computing point to any failure as a reason why the whole movement is flawed. As consultants who advise clients on the topic, we have been searching for a more rational discussion of the pros and cons.
David Linthicum presented several valuable slides in the webinar. The first slide that was useful listed seven criteria to be used to determine when Cloud Computing is a fit. Those criteria were:
David Linthicum presented several valuable slides in the webinar. The first slide that was useful listed seven criteria to be used to determine when Cloud Computing is a fit. Those criteria were:
- When process, applications and data are largely independent
- When points of integration are well defined
- When a lower level of security is fine
- When the core internal architecture is healthy
- When the web is the desired platform
- When cost is an issue
- When the applications are new
The next slide listed the criteria for determining when Cloud Computing isn’t a fit. Those criteria were:
- When process, applications and data are interdependent
- When points of integration are poorly defined
- When a high level of security is needed
- When the core internal architecture needs work
- When the application requires a native interface
- When cost is an issue
- When the applications is legacy
David also provided a 17 step process for implementing a cloud computing initiative.
We have found this to be one of the few objective and balanced assessments of Cloud Computing and recommend that you read his blogs and book. His book is available on Amazon and he has a blog at http://davidlinthicum.sys-con.com/
Friday, February 12, 2010
SIFTing Through Your Technology Choices
There are many factors that must be taken into consideration when buying new technology. It's important to have a checklist or framework to use in order to be confident that you are making the "best" decision. The SIFT framework can be used for purchasing technology and helping you to organize all of the factors so that alternative choices can be compared. Suitablity, Investment, Functional Fit, and Technology are all critical factors in determining the best solution. To read more CLICK HERE to download article.
Other tools to help you in your software selection are the 20th annual Distribution Software Guide and 4th annual Manufacturing Software Guide.
Other tools to help you in your software selection are the 20th annual Distribution Software Guide and 4th annual Manufacturing Software Guide.
Monday, February 1, 2010
Documenting Your Current Process is a Waste of Time and Money
Documenting your current processes can be a waste of time and money.
When we are preparing the project plan for conducting a selection project, one topic that is always discussed is whether the client needs to document the existing processes before starting the selection engagement. We believe that the answer to this question is “NO”. Let me explain why:
Our research indicates that clients who engage us to assist them with a software selection have know for at least two, and more likely three years, that they need to replace their software. The decision to replace software requires a significant amount of time and money.
During this period of dissatisfaction, various workarounds are added to address the weaknesses of the system. This includes external applications that are bolted on or developed in-house, applications that are purchased and not integrated, workarounds developed using Excel spreadsheets and more. In other systems we see comment field crammed with actionable information since this is the only place that users have for storing this important information. Unfortunately, if users have not read these instructions or follow the instructions errors will occur in handling orders. To prevent this from occurring more ad-hoc systems or procedures are implemented.
Investing significant time and money in documenting and flowcharting doesn’t result in a better set of requirements. At the Brown Smith Wallace Consulting Group, we have developed process outlines that reflect the standard process flows that the most new ERP packages will follow. We use these outlines to conduct interviews with groups of users to aid us in developing the requirements for a new ERP package. Typically users like to tell us what their software doesn’t do and how hard it is for them to get the right job done on time. These process indexes help us to keep the focus on the process and not the flaws of the current system.
Having a flowchart of the existing system only helps us to understand how dysfunctional the existing system is. It doesn’t help create the vision of the future state of the business. This doesn’t occur until they see demonstrations of new systems and the capabilities that are available to them. Only then can they start to understand the value of the new processes incorporated into the new software.
So if you know your current system needs to be replaced, start by documenting the requirements to achieve the future vision and do not document the past that you want to replace.
Wednesday, January 27, 2010
Managing ERP Implementations Differently
CIO Magazine recently published an interesting article about why legacy ERP systems need to be managed differently. Though this article uses examples from very large ($1B+) companies running SAP the author made several observations that are true for the typical wholesale distributor:
1. ERP packages that have been heavily customized can't be upgraded.
2. Maintenance investments are wasted as you can't benefit from new enhancements
3. New technologies (cloud computing, mobile apps, social media) are changing how ERP is delivered
4. Analytics and utilization of data is the new "killer app"
5. Implement new ERP software and don't customize it this time change your process instead.
If you are using older ERP software that can be upgraded because of the customizations read this article.
CIO Magazine: ERP_How_and_Why_You_Need_to_Manage_It_Differently?
1. ERP packages that have been heavily customized can't be upgraded.
2. Maintenance investments are wasted as you can't benefit from new enhancements
3. New technologies (cloud computing, mobile apps, social media) are changing how ERP is delivered
4. Analytics and utilization of data is the new "killer app"
5. Implement new ERP software and don't customize it this time change your process instead.
If you are using older ERP software that can be upgraded because of the customizations read this article.
CIO Magazine: ERP_How_and_Why_You_Need_to_Manage_It_Differently?
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