Nowadays every single company which wants to develop and assert itself on the market, sooner or later realizes the necessity and the benefits of business software implementation. Of course, this process of maturing takes time and runs individually for different organizations. But after the need has already been identified, the correct actions must be undertaken. Starting with the selection of a system and continuing with its range, initiation and maintenance – every single step has hidden pitfalls which can prevent the success of the whole enterprise.
How can we choose the right business software for us? Which processes must be covered by the new solution? What budget should we set apart in order to complete the project in the best possible way? How do we handle the resistance?
The first pitfall that can trip up the organizations is hidden in the very beginning and that is the choice of system. This decision will decide the efficiency, flexibility and prosperity of the company in future. For this very reason you should approach extremely carefully the different opportunities and options. “In order for a company to understand exactly what type of software it needs, it should step on 2 base points – what are its necessities and what are the benefits which such software would bring. And by benefits we mean not just immediate advantages but also potential ones which may be achieved in future. This requires an analysis which can be carried out by the company itself knowing its own sphere of action and its specifics or it can be done by hiring external consultants. The hardest part is to estimate the future benefits – some of them are quantifiable but others are not and instead they lead to qualitative changes. Based on them the company grows in terms of competitiveness, efficiency and profitability”, shares Desislava Bulgaranova, “Financial systems and solution” manager and a partner in Balkan Services.
Actually the different type of systems can be arranged in several categories based on their main focus. On one side are the solutions which allow the information to be assorted and structured. On another side there is software which helps with future processing of the data. There are certain platforms which aim at presenting the information in a more convenient and understandable way that would then make the solution selection easier. Beside that there are also systems which are focused on a particular business segment such as finances, planning, goods and inventories processing, etc.
“Making a good decision requires identification of the software type first and then identifying the spot where the corresponding company is. Very often the companies which are trying to make such decision have begun the process and reached a certain point but they do not have as rich information regarding the capabilities and diversity of business software as a consultant company would have”, shares Slavi Slavkov, head of ERP department and a partner in Balkan Services. He also adds that in his practice he has faced many cases where the client has not managed to identify the correct solution.
The reasons for that can be different. For example, it is possible that the company does not realise what exactly the problem is which takes a central place in its difficulties. “We have had many such cases where the client believes that all he needs is a type of reports however during our communication we find out that he has problems with assorting and structuring the information. These reports could temporarily solve the issue but the root of the problem is not in the presentation of the information and is in its arrangement instead”, points out Slavov. Also another challenge with selecting the appropriate solution type may happen to be the translation of terms and specific concepts. Very often when using Bulgarian language you may miss certain nuances in the meaning which at the end line can seriously mislead the companies about the purpose of a system.
However you should also keep in mind that even the best platform which corresponds to your needs may turn out to be ineffective if it is not well implemented. That is precisely why the experts are explicit that the selection of software and implementing experts must happen simultaneously.
After making the important decision about the business software type to be utilized, comes the next important step – defining the range of the project. If this stage is omitted or neglected the companies are risking ending up with an entirely non-functional system which definitely does not address their needs. In order to avoid such scenario the experts at Balkan Services recommend preparing a detailed analysis of the business processes which will be the base for drawing up the range of the upcoming solution. The more detailed the analysis the more prepared the company will be for executing the project.
“First, we review the particular problems, what are the challenges and what are the goals to achieve. We define the current situation and then draw up the desired results – what will happen in the company after completing the implementation, how will the work process go, what are the new responsibilities of some of the employees, which purely operational activities would fall off entirely. We call this range. We need to focus on all business processes and rules which must be served by the new solution as well as what would not be included in it”, explains Boyana Likomanova-Dimova, BI department manager and a partner in Balkan Services.
Especially important at this stage is that the companies should not fall into extremities but should strive to achieve the optimal balance between functionalities and efficiency. Very often the organizations insist on more features and options in the system from the very beginning without realizing that this would complicate and encumber its utilization. From the beginning the employees would be confused, slowed down and in the end will make more mistakes which undoubtedly will have negative effect on their motivation and productivity.
“If you buy yourself a modern system with many features you are making a huge current expenditure and are facing difficulties in utilizing it during the first year. The fact that you bought a system with many features does not mean that you would become more successful than someone who has implemented the correct functionalities which correspond to his priority processes. You should focus on finding out where the biggest added value is “, claims explicitly Bulgaranova. Regarding this point you should keep in mind that implanting business software is a long process which takes time. And a good balance could be achieved by carefully approaching the initial range of implementation and leaving a part of the features which are not carrying a fundamental importance for a later stage.
Another serious mistake which the companies may commit when defining the range of the project is to not anticipate the ability for constant adapting of the new system. With the current dynamic market, many companies are changing their business model during the process of their development and this inevitably sets different requirements towards the business software. The old solution may no longer fully correspond to the new necessities. Therefore in the very beginning the organizations must look for platforms which allow for flexibility and upgrades. “By buying such system, you are buying the security that it would be able to follow the business development and the changes in the business model”, comments Slavov.
When it comes to expenses and setting a budget all companies are approaching the matter very carefully. However in this particular case there are certain specifics which may elude us if we do not have the required experience. The experts are warning that without a planned in detail range of the project for implementing the business software, we may reach unpleasant surprises at later stages of the implementation.
“We must be aware in detail about all the funds set aside and what their purpose is. The system needs tо described to the smallest details possible. The place where we should focus our attention to is the exceptions in business processes. A common characteristic of the Bulgarian businessman is that he loves to be unique and handle his job as he is used to. We do not appreciate the standards; we love to be outside of them. However when this goes into a system, it does not care whether a single action is done in 1% or 99% of the cases. For the implementers this is a different algorithm, module or a new feature that needs to be added “, emphasizes Likomanova.
A good option for preventing unexpected expenses is that the companies should always set aside a reserve in the budget aimed exactly at such exceptions. Bulgaranova adds that a part of the organizations are ready for a maximal standardization of their processes and giving up those who are not commonly applied. This however is difficult decision and cannot always be applied.
Another example for hidden costs is the investment in installations. “In order to ensure the work process of a system in the installations, there are certain requirements: servers, software licenses, operating systems for databases, etc. Many people do not realise that funds are needed not only for the licenses, the services on implementation and following maintenance, but also for the hardware and the necessary conditions for this hardware to operate normally. Another hidden cost is the update of the software with a newer version. Sometimes it is about a heavy re-implementation of the newer version and it may require more powerful server machines and updated operating systems”, notes Slavov. He highlights that these problems can already be avoided because of the development of the technologies, namely the cloud systems which only require a subscription.
Lastly, but not in terms of importance, we have the internal expenses which the companies tend to underestimate in their initial plans. Here we are talking about the investment in human resources within the organization itself. The so called “key employees” on whom the successful implanting of the system depends must be supported during the whole process. For a number of months they will have to carry out their daily responsibilities as well as their tasks on implementing the software. The experts emphasize that not a single consultant company can execute the project successfully without the internal team. That is exactly why investing in those employees must not be neglected.
In most cases implementing business software means a change in the work process for the employees of the company which leads to a need for following new different rules and requirements. This inevitably causes a negative reaction which may spread in the whole organization. In order to timely interrupt this process you need to rely on the aforementioned “key employees”. According to Slavov words, they are the first sieve which filters the negative reaction and provides with constructive suggestions even in the early stages.
“Implementing such type of system is surely a big change. First and key for the success is to find several employees – depending on how many processes are covered by the system, may be 1 or 10 people – who really wish for that success. They will assist; they will be first ones to test, to train and will have the desire to advance. For this type of people this also helps them in their future career growth. It is important that the company identifies these people inside who will accompany the whole process and will travel the heavy road of implementation, testing and decision making. After that they will help their colleagues in the daily usage of the software”, points out Likomanova.
A reason for the negative reaction may be the worries of the employees that the business software would threaten their position in the company and will lose them their job. “Honestly speaking after all these years I have no clear memory about certain people being made redundant because of implementation of software system. The people are redirected to activities which require more thinking, adaptation and creativity instead of simple repeating actions. The companies are utilizing exactly their brains, the thing that the machine cannot achieve”, shares Slavov. He adds that the Artificial intelligence is still in a very early stage of development and at the moment the machine cannot replace human imagination.
According to Bulgaranova as well, there is no reason for worries because the software helps the employees to focus on their real responsibilities. For example, when it comes to higher level managers it proves to be invaluable. And if before they needed a lot of time to provide the necessary data then with the right system they will be able to devote their full attention to the priority activities and tasks.
In conclusion the experts advise that before anything else the companies must figure out what exactly is the solution they need. And if they have already started their projects for implementation, to find the people who will manage to sweep along all the other employees in this process. Actually with the development of the technologies the business systems are turning into the heart of every single company which must beat with its rhythm and inspire it.
