Business Software Systems: Selecting and Implementing
Business software enables companies to capture mission critical data then extract this data to meaningful reports and information. This is knowledge which will help management make informed business decisions.
Before even selecting an information system, the question should be asked, “Why change?” Here are some reasons:
• You are a fast growing company and need a system that can grow with you
• You have requirements, international, government, local etc, that are not being met by the installed system
• Your company has simply outgrown your present system
• Your processes have changed the way you do business
• You want an e-business solution integrated with your accounting
• You are running antiquated systems, hardware and software
• You are using home grown Excel spreadsheets
• You have a legacy system that was customized to your business but it no longer has support.
A new system delivers
A properly installed and implemented system can contribute the following to your organisation:
• Better decision making capabilities
• Improved cash flow
• More accurate information
• More control
• A foundation for growth.
There are four important components in choosing a new system
Involve the right people:
• System users
• System managers
• Systems administrators
• Enterprise administration, finance, management etc (all key users)
Identify the problem, then define and document your requirements
• Accounting - general ledger, accounts receivable, accounts payable, tax etc
• Administrative processes
• Payroll
• Purchasing
• Stock control
• Asset management
• Job costing
• Service management
• Client relationship management etc
Seek professional advice
Speak to professional information specialists, to assist in selection of systems that meet your requirements.
• Ask for references
• Ensure a complete service package
• Ensure your advisors listen
• Ensure your advisors communicate clearly
• Be confident you can work with your advisor.
Evaluate the software supplier
• Scalability is key as your business grows
• Can your current data be converted
• Easy integration with other business systems
• Speed of installation
• Ease of use
• Integration to web-store facilities, if desired
• Globalization: does it support multi currency, multi lingual if this is needed
• Reporting capabilities
• Ease of input
• Data validation
• Error handling
• Security.
Choosing the supplier
• Does the version of the package have a large installed base
• Is support supplied locally
• Are upgrades available and at what cost
• Is there a good technical support team with more than one person to support your business system?
Implement the system
• Provide good training
• Keep people informed
• Don’t rush it
• Alter job titles to reflect increased responsibilities
• Plan for ongoing review and evaluation.
What effects the projects costs?
Many companies wrongly focus just on the software license fee when comparing software suppliers. This single comparison is often made excluding other investment considerations that frequently account for a greater portion of the overall project cost than the software license. The following notes highlight items companies should consider when contemplating the introduction of a new IT system.
There are factors which determine if a project is going to be at the high or low end of a cost per user spectrum.
These hidden costs can be broken down into hard costs and soft costs.
Principal contributors
The cost of a system will depend on the project scope and your existing infrastructure.
Integration and process re-engineering costs will increase as a project’s scope becomes more ambitious and skills shortages reduce availability of good in-house resources.
There are other factors to consider that relate to scope of the project and five to existing infrastructure.
Scope cost drivers
• Number of people/seats (software costs generally equate to around 42%)
• Number of geographical locations
• The number of different functions involved - sales, invoicing, financials etc
• The extent to which processes within the functions need to be re-engineered
• The amount of systems configuration (generally around 28% of hard costs)
• Integration between back office systems
• The need for a large scale back-end
• Existing infrastructure and resources
• Other change management initiatives in place
• Good and available in-house resources
• The quality and accessibility of existing data.
Questions you need to ask about the software
• How is the software licensed: on a con-current user or named user basis. Concurrent user licenses work on the number of concurrent users connected to the system at once, but allows you to register a larger or smaller number of potential users within the system. Named user licenses mean you pay for each name you have registered on the system. If a registered user leaves the company, then the client may need to purchase another user licence, as the user "history" may not be able to be transferred over to the new user. This could be a very costly exercise over time
• How is the system deployed: Web browser, Citrix, Terminal Services or client server. A system that can be deployed in all of these methods is more flexible and will not limit your business as changes occur over time
• How flexible is the reporting system. Does it come with standard reports? How many, how suitable to your needs and how can these be modified to fit your business if required. Are they editable with an industry standard report writer like Crystal Reports
• How functionality rich is the software and will it still meet your requirements in 12 months or two years. Quite simply does it meet your requirements
• What database does the software use. Choose a system that is based on a popular database.
When you have done all of this work, you can be pretty well assured that your chosen application will meet your needs.
This article was contributed by Phil Hicks, Development Manager of one of our large list of associates. He may be contacted through our office if you would like to discuss issues further, or you may speak to one of our trained consultants.
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