Implementing Business Software David Heimer COO, The Service Roundtable David Heimer COO, The Service Roundtable Steve Saunders President, Tempo Mechanical Steve Saunders President, Tempo Mechanical

Only 37% of software projects are completed on time. Only 42% are completed under budget. -- Information Week Consequences Excessive costs Excessive costs Lost customers Lost customers Lost revenue Lost revenue Opportunity costs Opportunity costs Team morale Team morale

Only 37% of software projects are completed on time. Only 42% are completed under budget. -- Information Week Why? Unrealistic goals and objectives Unrealistic goals and objectives Misunderstanding costs Misunderstanding costs Scope creep Scope creep Bad selection of software/vendor Bad selection of software/vendor Poor project management Poor project management

IT benefits and non-benefits  The cost of information is cheap  Automation reduces overhead  The system should pay for itself  Enormous opportunities, but…  Too much automation is too much  Bad implementations cost dearly

What are your goals? Know what you want to achieve Have real problems in mind Impact on the core business Manage expectations (no scope creep) Make your goals S.M.A.R.T Document the goals and share

Control Scope Creep Your business is (probably) not unique Modifications are an ongoing expense Fit you to the software? Fit the software to you? Focus on what’s critical

Understand the costs! Much more than just the purchase price Hardware purchase or lease Software purchase or lease Consultant(s) Internal time Annual service agreement Custom programming Hosting fees Training (initial and ongoing) Hardware upgrades

The Steve Saunders rule of thumb… Take all the known costs, multiply by 3, add 1 year.

Elements of project management success 1. A project leader 2. A task list – who does what, when 3. Buy-in from the team 4. Scheduled project reviews 5. Enforcing the due dates

Elements of project management success

Selecting your system (The Steve Saunders Experience) Selecting your system (The Steve Saunders Experience) Be wary of comparing the cost (all too real and usually underestimated) to the (all too elusive) benefits. Be alert to untold benefits and unintended benefits – a growing company may die or blow up without the software upgrade. Relational Databases allow for more customization. customization. Windows software is horrible, non-Window software is horrible.

Selecting your system vendor 1. Vision (Gartner Group) 2. Ability to execute (Gartner Group) 3. Financial stability 4. “Fit” with your company 5. Where will they end up if… Founder dies? They’re purchased? Industry changes?

Selecting your system (benefits of ASP) Selecting your system (benefits of ASP) ASP = Application Service Provider ASP = Application Service Provider Easier set up – connect to the internet Easier set up – connect to the internet Lower initial hardware costs Lower initial hardware costs Better security, better recovery Better security, better recovery Reduced administration costs Reduced administration costs Faster, less expensive Faster, less expensive implementations implementations

Selecting your system Research and References Service Roundtable discussions MIX Group Vendors Vendor-supplied references Trade magazines

Vendor management The VAR (Value-Added Reseller) is a key to success (or failure) The “best of breed” is not best The “best of breed” is not best The “one throat to choke” theory of vendor management

Testing is Boring Find problems before you “go live” 1. Specific processes 2. “Day in the Life” 3. Volume test 4. Parallel testing 5. Disaster recovery Consider the “Athenian Solution”

Plan some fun! Celebrate the success. Show your appreciation Present certificates. “We Survived” t-shirts. Happy hour. Ball game. Dinner. Arcade.

Post-implementation review Review in 3 months, 1 year Review in 3 months, 1 year What worked well, what didn’t What worked well, what didn’t Did you get the savings you projected? Did you get the savings you projected? Any new savings? Any new savings? Any new costs? Any new costs? What new opportunities? What new opportunities? Tell us what you found out Tell us what you found out

Resources… -- click on “Freebies” for this presentation -- click on “Freebies” for this presentation -- join discussion groups “Joys of Implementing” -- David Heimer Vendors: