Software for Business – Avoid the Software Implementation Blues
Planning a major software purchase? You can increase the probability of success of a software implementation project, and avoid singing the implementation blues, by doing your homework and following a proven model for success. This model includes an analysis of your current business systems, a vision of your improved system, an improvement process, and education. Also, top management must buy into this model, and support it at every step.
Failed implementations litter the landscape. You’ve probably heard horror stories, maybe starred in one yourself, where companies that purchased an expensive new software system, spent a year or more installing it, and ended up in worse shape than when they started. Organizations spend tens of thousands to millions of dollars buying, installing, and operating sophisticated systems to help them run their businesses. All too often, not only is this money wasted, but a string of casualties are left in the wake. When these projects fail to meet their expectations, blame is spread freely, and invariably rolls downhill. But it doesn’t have to be that way.
Notice that I didn’t say when these implementation projects fail to meet their goals, I said fail to meet their expectations. Goals are planned, after careful analysis. Expectations are fueled by hype and wishful thinking. A software implementation, like any investment, should deliver a return. Software is purchased with the expectation that the business will run better once the implementation is complete. Much of this expectation is a direct result of the sales pitch from the solution provider. This is not to imply that software vendors mislead their customers or misrepresent their products. However, rarely do the final results match the vision that is presented in these initial presentations.
Why is there a disconnect between expectations and results, and what can you do to close the gap? A primary reason for the disconnect is a lack of understanding of just what to expect from a new software system. The need for new software is not always expressed as a clear business need. Often, the need is not really a need, but a want. Statements such as “We can’t do such-and-such with the current system”, and “We can’t ship on-time without a new system” are often heard. Change a few words in these statements and you get to the heart of the problem. How about “we can’t do such-and-such with the current business model?”, or “we can’t ship on-time without improving the process?” A software purchase may be a part of the solution to an existing problem, but it is not always the best solution, nor the first one that should be undertaken. Before looking at software, you need to look at your business.
Thomas F. Wallace and Michael H. Kremzar, in their book ERP: Making It Happen (John Wiley & Sons, Inc., 2001), define The Proven Path, consisting of 16 steps for successfully implementing an Enterprise Resource Planning (ERP) system. Software isn’t mentioned until step 12. This means that, according to Mr. Wallace and Mr. Kremzar, 11 distinct steps should be performed before even looking at software.
Once an organization determines that it is not achieving the performance that it desires, it should conduct an analysis of the business. This analysis should include reasons for the current performance, a vision of the future, and recommendations for improvement. This analysis should also include performance goals. Once you have determined the goals, recommendations for improvement must include strategies to achieve those goals. If the recommendations for improvement include new software, only then should a software implementation project be undertaken. But remember, this analysis is only the first step in a multi-step process of implementation. Many times, performance can be enhanced significantly by making improvements to existing processes, without an investment in software.
Education is an important step in this process, during the analysis phase, and during the implementation phase. During the analysis phase, management, including top management, must become educated on the benefits and limitations of a software solution. This education must include the resources that will be needed to successfully implement the solution, as well as realistic expectations of what the final system can provide. Once a software solution has been decided upon, further education of the management and staff that will be responsible for the implementation is required. Finally, education and training of the users must be provided during the implementation, and must be updated and reinforced on a continual basis.
By: Steve Novak