How to achieve business change when implementing new software Part 1

Business change in a world before software.

Business change
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In my father’s time when I would visit him at the office, there would a team of secretaries who would be producing endless reams of paper which would be stored in paper filing cabinets. Whenever my Dad needed to refer to anything, he could retrieve the file, organised alphabetically and flip through the pages till he found what he wanted.

Business change in relation to software.

These days organisations totally rely on some sort of software solution to facilitate a similar process.  From filling a VAT return, tracking stock movements, to chasing potential sales leads, this information is now entered into a digitised system. This could be a simple as updating a spreadsheet or running a multi-ledger financial report from a SAP database, the PC has virtually wiped the reliance on paper records. Yet few would understand the technologies that drive such change nor it’s full potential or vulnerabilities when things go wrong.  It gets even more complicated when trying to decide which solutions is best suited to your business.  Is it best to buy off the shelf, customize what you have, or to “build your own”?  What are the pros and cons and costs of each? Do you go for an overarching ERP (Enterprise Resource Planning) solution that does everything, or is it best to buy several different packages that specialise in doing a task? If the later do, they need to share information and how is that possible?  Almost half of all software projects fail within the UK, usually through because the stakeholders do not understand the software’s capabilities or appreciate the peculiarities of the business function that is being replicated.

When software projects go wrong.

I went to a conference a few years a go from a Prince 2 practitioner and he shared with us a story of how he tried to facilitate a session dealing with a software solution for the NHS covering the south of England. He had 43 different stakeholders in the room all wanting different outcomes from the solution. He knows right then and there it would fail as you can’t get consensus from such a diverse set of interested parties. The government cancelled the project in 2007 at a cost of 8.9 billion pound which was a substantial amount of the overall government debt at that stage.
This is where an exercise to analyse all the business requirements and dependant systems is to be conducted to fully appreciate all the different aspects involved. From the business function and technology, to company culture and stakeholder expectations, all have to be managed like a giant juggling trapeze act to bring all the pieces into place.  The first in this exercise is to gather all the business requirements to get a global picture of what is involved.

 

About the author:

Malcolm Ford has over 10 years’ experience implementing ERP software across the UK. He has worked in a wide variety of sectors from manufacturing, export, distribution centres, construction and international law.

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