Are you adding to a system, upgrading a system or completely changing it? There are some key factors that are crucial for success.
Most factors apply equally to packaged and custom-written systems:
1. SENIOR MANAGEMENT SUPPORT AND COMMITMENT
There will be times in the project when business priorities clash. It's important for senior management to make their commitment to the systems project clear, given the benefits to be gained and any problems the new system will overcome.
2. PROJECT PLANNING
Doing the right things in the right order at the right time is critical to success. Experience counts.
Where can quick wins be made? Should the project be phased? How?
When in the financial year should changes be made? When do staff have time? When would it be impossible?
3. USER REQUIREMENTS SPECIFICATION
The "User Requirements Specification" document acts as the cornerstone for discussions with prospective suppliers and to steer subsequent implementation. It can be incorporated into a "Request for Proposal" or "Invitation to Tender".
Key aspects include:
- Benefits anticipated
- The "big picture" vision and scope
- Management information
- Key processes, including communication with customers, suppliers and between departments
- Other functionality and system management issues
- Transaction examples for software demonstrations and testing
- Detail where important
The selection of a package requires less detail than for custom-written systems. But with packages, it's still important not to take too much for granted.
A formal sign-off procedure by relevant managers helps ensure commitment to the project and its scope.
4. SELECTION OF SOFTWARE AND SUPPLIER
Software requires support, during implementation and on an ongoing basis. The supplier is therefore as important as the software, be this the author and/or reseller. Factors include:
- Is the software used in your type of business?
- Is the software appropriate for current business size, with scope for growth?
- Does the supplier have experience of your size and type of business?
- What range of support services do they provide?
- Financial strength?
Software demonstrations will tend to highlight the software's strengths. It is critical to use the User Requirements Specification to uncover any important weaknesses .
5. USE A "SOFTWARE AS A SERVICE" SYSTEM?
Traditionally packaged software was licensed to be hosted by the end-user. Increasingly there is the option for hosting to be outsourced, with access via a web browser. Some software is only available on a hosted basis.
Hosted software is usually, but not necessarily, sold on a subscription basis - "Software as a Service" (SaaS). Payment is made monthly, quarterly or annually.
Whilst there are some clear attractions of a SaaS approach, it is not always practical. There are also some important drawbacks which have become apparent through experience, which the SaaS providers obviously do not highlight!
As the use of SaaS is a key strategic decision, it's worth making it with your eyes open.
6. IMPLEMENTATION MANAGEMENT
Implementation requires dedicated time and experience. Meeting deadlines is crucial. Missing a deadline can mean missing a window of opportunity in the financial year, and a substantial delay.
There are many aspects to successful implementation. Three to highlight:
(a) Actions need to be allocated to individual people. Over the course of a project there will be leavers and joiners. This all needs to be co-ordinated.
(b) Any external organisations involved in the project need to be actively managed. Availability of their personnel can be critical.
(c) All software needs to be tested. Packaged software may not have been used in your configuration, and is rarely bug free. It's important to run through all key processes.
7. TRAINING
Software is only as good as it is used. In the case of packaged software, it is also only as good as it is configured.
Software is usually sold as "easy to use". So is a car easy to drive once you've got the hang of it - but this takes tuition, time and experience.
Training of end-users and one or more "super users" is therefore vital for success.
8. STANDING DATA MANAGEMENT
Systems all require standing data to function correctly, such as:
- Chart of accounts and analysis codes
- Customers and suppliers
- Product and/or project details
- User roles and access rights
If administration of these aspects is not addressed adequately, the system will fail to perform as expected.
9. BACKUP AND DISASTER RECOVERY
Financial systems tend to be mission critical. It is vital that backup and recovery arrangements, including disasters such as fire and flood, are adequately addressed. This includes periodic testing.
10. POST-IMPLEMENTATION REVIEW
Often overlooked, a post-implementation review is important to establish that anticipated benefits have been achieved, or what is still required to achieve them.
It also allows the experiences to be captured to aid future projects.
IN CONCLUSION
There are some key factors for success when changing financial systems. Overlooking any one of these can result in anticipated benefits not being achieved, or the systems failing completely.
If you would like to discuss any of these aspects with me, do contact me.
Chris Challis
challisc @ camwells.co.uk
+44(0)1628 632914
