While not an easy or inexpensive undertaking, from time to time it becomes necessary to replace your company’s accounting or other core business software. A new system allows your company to be more competitive, profitable, and better strategically positioned. In this article, we’ll touch on some of the pitfalls and best practices of implementing core software that is integral to your business.
Implementing core business software is analogous to renovating your house while you’re still living in it. The challenge is trying to replace the software and systems that are used every day in running your business, while still seamlessly running your business. Today, core business software includes capabilities to make connections outside of your business — to your customers, suppliers or partners via Web-based applications. This ripple effect makes the difficulty of implementing these systems even more arduous. In addition, network and hardware infrastructure often needs to be upgraded or replaced in order to support the new software.
Core business software includes the software or systems that are central to the functioning of your business or organization. This includes what is typically known as an ERP (enterprise resource planning) system, which is integrated software that supports all facets of your business including accounting, human resources, planning, manufacturing, warehouse management, sales, and marketing. Other core business software might also include enterprise portals, document management systems, knowledge management systems, customer-facing Web storefronts, point-of-sale systems, and other automated systems.
Core business software is not office productivity software such as spreadsheet or word processing software. While office productivity software is important to your business, it is a different category of software and is not the subject of this article.
Prior to beginning a core business software implementation project, there are two projects that need to be completed that directly contribute to the success of an implementation:
• Requirements Definition – This is an often glossed-over but nonetheless critical step prior to selecting a software solution. Before you choose the software, you have to know what your business requirements are. This means knowing your overall business strategy, knowing your budget limitations, knowing your expected benefits, and having a way of measuring your benefits.
• Software Selection – Once business requirements are known, the process of selecting software can begin. Although this is a tedious step, taking the time to select the right software will pay large dividends when the system is put into use. This is not the time to take short cuts or to place too much trust in the claims of software marketing representatives. Even though an ERP package may work well for a company that is in the same industry as yours, certain aspects surrounding the unique relationships and arrangements that your business has with its suppliers, customers, and employees may be completely unsupported in that ERP package. Simply assuming that an ERP package will work for your business because it works for another company is a shortcut that may result in a very costly problem.
The cost of selecting and implementing the wrong software can be tremendous. The fallout from a poor software selection could negatively affect a company for years or even affect its ability to stay in business.
Correctly identifying your key business requirements and then selecting the right software is only the start of the battle. Correctly implementing and integrating the new software into your organization and your methodology requires that a major campaign be waged.
There are two key aspects of implementing core business software that require very different skill sets and different project approaches. One is to correctly install, configure, test, and tweak the software. The other is to recognize and improve the business processes that need to change as a result of the new software’s functions and features. These two aspects are the Yin and Yang of software implementation. To have one without the other can be a recipe for disaster. They go hand in hand and feed off of each other. It’s critical that the processes that are automated are the correct processes to automate. As they say, you don’t want to pave the goat path.
It is much simpler said than done and requires a concerted change management effort. It’s very difficult to change the way a business does business. Even if there is a much more efficient and effective way to do something with your new software, convincing your employees of the value of a new process or method is another story. And today, the improved capabilities of all types of business software, including the ability to integrate with the Internet, have provided many opportunities for businesses to improve and even reengineer business processes and methods.
Properly chosen and implemented core business software applications can provide a big payoff by improving the accessibility, accuracy, and timeliness of information. It also enables a business to more efficiently and effectively manage its legal and business relationship obligations.
Although a core business application or system can be complex, expensive, and disruptive to implement, the bottom line is that when properly defined, selected, and implemented, such a system can give your company a tremendous competitive advantage and can mean the difference between mediocre business performance and outstanding business success. |
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