Tuesday, February 16, 2016

Choosing new software: use the right arguments – InCT

16-02-2016

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Technology

By: Danny Francken | dfrancken@bizonsoftware.nl | Bison Software | Biblio3.nl

  An important ICT system Choose , such as ERP or accounting, is no daily work. To make the right decision regarding the choice of package, it is important to separate primary and secondary issues. These are important points to take into account.

only rely on what the party seller, is not enough; which often gives a one-sided view. The strengths of a package or put forward, and as the seller good listening to you, it may also mention the points which can provide benefits to your organization. It is important that can be tested against your practical situation during an extended demo this point.

 
 There has to create a true picture of the points that the seller less exposed. Are these points highlight just less, or the point at which the system performs less? The latter is important because after commissioning of a system, the initial benefits soon be ‘normal’ and then the lesser points will stand out. If these points thereafter from interfering with the use of the system is affected, and they can contribute to a prejudice of the total support. Then you with a system that is only used limited.

Plan
 A package selection starts with the internal organization. Ask lots of questions, such as:

  •  What the organization has now means?

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  •  Which hits the current system deficit?

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  •  What problem has to solve the new system?

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  •  Can be implemented in phases?

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  •  How bad the internal organization is entrusted by the migration?

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  •  How much budget is available for the replacement?

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  •  Can your organization with the cloud in? And why would you do that?

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It is important to think in advance about the what and why of the new system. Within the organization then creates a clear picture of where one begins and the vendors are better prepared for conversation. About sharing the available budget with suppliers is highly recommended. It prevents wrong expectations and wasted time. The supplier will be able to come up with better solutions as who knows what the budget. Parties ‘too expensive’ are hooks right now and it creates transparency throughout the process.

A good plan certainly contributes to a better project. From the start you will be bombarded with the purchasing party (marketing) slogans such as “360 degree customer view ‘,’ chain integration ‘and’ full understanding ‘. What that means is often understood only when the entire project is completed. So make an advance indication of what is to actually come out of the system after the delivery in terms of reporting and ‘insights’. This helps the implementation partner or supplier for proper design of the system during the deployment. Also decisive for the outcome is how the migration of historical data record is found. No data no insight and no similar reports.

Provider or partner?
 After the initial appointments and global demos, it is important to focus. Which supplier and what solution you have the best match? The idea is that you build a relationship for several years with the supplier. Then that relationship had better be good. The supplier must be a partner. The fear of ‘hour-invoice’ is often motivated by a past experience. If the relationship between the two parties is right and the vendor feels a partner, will often just do not bring everything into account and do more than required to maintain the relationship. You treat your suppliers as ‘supplier’ then all billable.

What to watch?
 The key points at a glance:
 

  •   Continuity : Right at the present time, which (unfortunately) many companies get into financial difficulties, it is important to check whether your supplier is financially sound. You are about to make a relatively large investment and a long-term relationship. The corporate structure of the supplier is important. It is a sole proprietorship with customers run the risk that the company stops or is an implementation party who does not own software? What about the relationship between these parties? If the software decides that the implementation partner it can not just be ‘over and out’ has made sufficient sales. The client is the victim. Ask for it and be critical.
     

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  •   Domain Knowledge : If the supplier has a lot of domain knowledge? Then an implementation process will be smoother and more likely to stay within budget. An experienced party will ask the right questions, make good judgments and thereby overcome professionally. That gives confidence. You do not like clients to train the supplier. Often brings the supplier of new ideas and insights, based on best practices at similar companies.
     

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  •   Functionality : What does the new software package functionality? What puts the UI together? The package is based on new technology or is it an older platform? Since there are multiple people work in your organization with the new package, it is important to identify the needs and requirements by section and test the functionality offered by the new package. Here, it is important to estimate what should be able to bring the software in the near future. The package is future-proof? It is also good to know that there is help available when needed. Is there a help desk that understands you ask? Or is there an online help function accessible? And what it costs to help exactly?
     

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  •   Integration with existing software : These links (interfaces) are often complex and perfectly working and tested links are not always available. Here the expertise and flexibility of the supplier plays a decisive role. Always ask yourself whether an interface is needed and what it adds to the process.
     

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  •   Deployment Time : If a supplier domain experience in implementing similar businesses will go faster. A ‘generic’ supplier will never know all the ins-and-outs of your business and the package might need customization. And precisely tailor you want to minimize. Customization has an impact on maintenance and renewal. Standard software offers many advantages in terms of investment and maintenance, and minor adjustments within the standard often as possible.
     

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  •   References : Check references. At all levels who work with the package. Only call a CEO or director may not give the full picture. Call also with people who work with it from a different role.
     

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  •   Purchase Price Too often only made on the basis of financial considerations a choice. And often the result is disappointing. Price is not only decisive for the choice. The most expensive package is not always the best choice. It is precisely a combination of factors will determine the final price. A specialist will probably be initially more expensive, but because the specialist can deploy faster it is ultimately cheaper. And often better too! Buy consciously.
     

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  •   Cost : There are basically three main types of costs:
     
    1.   Licenses to use the software.

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    3.   Deployment and Migration package so that you furnish employees can work well with it, interfacing with other software and migration of historical data so that the new system is filled with the right customer data and products. You can also start completely “clean”.

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    5.   Maintenance software also needs maintenance. This includes updates and upgrades, bug fixes and minor functional changes.

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Cloud or In-house?
In a cloud-based solution, the software is hosted by the provider and users have access over the internet. In an ‘in house’ solution is the software on a local server that can access the users on the corporate network. A mix of both is also possible (hybrid solution). Discuss during the inventory phase with the supplier what is the best solution.

The cost components are the same for a cloud-based solution or an ‘in house’ installation. At ‘cloud’ solutions are often monthly amounts calculated and there is a low initial investment, while an ‘in house’ installation licenses and maintenance often must be prepaid. The implementation costs may differ for ‘cloud’ and ‘in house’. When the cloud can often be done with templates which can be handled very efficiently. The device is ‘copy-paste’ adopted and adapted where necessary. The hardware is finally known and easily accessible to the supplier. Another difference may be in the travel and accommodation expenses for the consultants who carry out the implementation. The ‘cloud’ which will be reduced or even completely disappear. When the cloud to be paid, there may still be additional hosting fees and the Internet may need to be adjusted. In an ‘in house’ installation must meet the hardware to the requirements of the supplier to ensure optimum operation of the plant. This is usually included in the ‘cloud’ solution.

Scope?
 You want no surprises in terms of costs afterwards. Yet these are more common than you think. Implementation Parties who do not own software but deploy third party software, life consultancy. That in itself is not bad, provided there are clear agreements, in the form of Service Level Agreements (SLAs). Also the project the ‘scope’ should be disclosed in advance, so it is clear what services and functionality required to deliver software. It is very important to define the scope in a good document because uncertainty often leads retrospectively discontent. The customer expects certain functionality, “That’s so standard that everyone does, so it’s just natural to sit in!”, While it is described not as clear in the scope

Remote Consulting.
 There is quite a lot to look at buying a package and for whom this is not a common practice, an external advice can not hurt. Watch out who you ask for advice. Unfortunately, there are still advisory and consulting firms who have already made the choice of package in advance. Then you better turn on any consultancy, because that’s wasted money. An independent organization or advisor looks at your business and processes and translates them into a plan of requirements. Only then looking for the right solution.

(Contingency) costs later
 If the supplier does not affect the software, this can lead to unexpected costs afterwards. The consulting party, making the implementation has little to no influence on the developments at the major software developer (Netherlands is after all only a small market for this type of large parties) and also has an interest in new releases and new versions. Often these major releases require re consulting efforts, the implementation partner perhaps can not provide, but which are necessary because previous releases are no longer supported. As a customer you can not move and you have to re-invest. Foreseen or unforeseen, afterwards the cost that you would rather not have.
 With industry-specific software, wherein the software developers themselves do the implementation, will often prevent this, much less than large generic software vendors. With many industry-specific software updates and upgrades already included in the license and maintenance. This hardly means unforeseen costs later.

practice
 A practical example, based on publicly available information over the internet from a generic consulting party:

“The digital world is evolving rapidly and package xxx develops naturally here with. This periodic new releases as a result. The downside of this is that the older releases no longer be maintained by xxx and in the future may no longer meet the requirements of the legislation accordingly. “

” The transition to xxx2015 is a major release change. Both the architecture and functionality have undergone major improvements. The user interface of xxx has undergone a metamorphosis in the latest releases. “

What are the consequences for users of older releases?
 An upgrade to the new version or release a seemingly drastic step that deserves a careful plan. What steps need to be taken and what is required of the organization?
 From the above you can conclude that making a choice is not easy and that additional agencies is definitely needed. You’re at the mercy of the whims of a very large, often international party (xxx) which ignores the needs of individual customers in a market that is small for this kind of big developers. This leads to additional costs that you will not have quick an industry-specific solution.
 
 A provider of industry-specific solutions (where the developer himself does the implementation) annually organizes customer days when he listens to what customers want and users. Also, adjustments are quickly realized on the basis of that input. You are the customer taken seriously, because the developer is equally dependent on the customer and the customer of the developer. That may be so in a generic implementation party, but that often does not affect the release policy of the major software provider.

Conclusion
 A good plan is essential and carries from the start to a good project. Industry-specific software partners know the market, the properties and the processes of their clients in the sector.

Good luck with your choice based on sound arguments!

TRENDS & amp; TOPICS
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