Off the Shelf Package Implementation and Roll-outs
Choosing a packaged enterprise application or assessing the benefits of existing systems began and often ended with analyses of the costs to implement, deploy, and maintain them. However, a pure cost-oriented approach like total cost of ownership (TCO) does not allow an organization to measure the full economic impact of the investment. By measuring not just cost and financial benefits, but also risk or uncertainty as well as future flexibility, enterprises can establish a more inclusive and accurate picture of the return on investment (ROI).
The selection and evaluation of products must be done in a consistent, quantifiable manner to be effective. By using a formal method, it is possible to mix very different criteria into a cohesive decision; the justification for the selection decision is not just based on technical, intuitive, or political factors.
McNair uses the following method to evaluate the usefulness of the software as it relates to the functional requirements and business processes, these have proven useful in the past.
Consultation with Key Stakeholders at this stage would be useful when defining the perceived value/importance of individual processes or requirements.
Selection Criteria:
- Definition of Priorities Matrix
This is a list of major requirements outlined from the Functional Requirements Definition Documentation. Features are listed sequentially based on the frequency of use and the perceived importance. The required features will be a product of the business processes collected and analyzed in the Business Process Analysis Phase.
The process inventory will be categorized as:
- Mandatory
- Optional - Bonus
- Not required
When evaluating a possible software solution, most organizations are likely to consider the ability of the product to meet the functional requirements. Although it is a significant first step in the evaluation process, this should not be the only criterion that is considered. Two additional criteria that should be considered are risk and intangible factors.
- Definition of Risk Matrix
This product is created based on System Architecture Assessment. A list of the current known project risks taken from the Risks Analysis need to be incorporated into a document to see if the vendor eliminates.
Many of the risks associated with system management and operation are not in your direct control.
- Is there support (Warranty, training, developer, etc.) offered?
- Is your vendor flexible enough to make changes in the middle of development?
- Is the vendor financially stable?
- How mature is the technology used?
- Definition of Intangible Matrix
Intangible factors are not the traditional "quality" factors, but rather factors that are programmatic decisions. These are decisions that can or will affect the overall project during its life span. Most of the decisions also depend on intangible factors that are difficult to quantify.
- Does the software require specialized language training or techniques to use it or integrate it into the system?
- Are your organization's business processes/requirements subject to a large amount of change?
- Is this software being applied to only one area of the system, or is it being reused across many areas?
- Are you buying more "bells and whistles" than you really need?
- The end user is the person who is most likely affected by your decision. Will integrating this software require additional training or changes to the process?
- What is the additional time/cost to modify or interface to the software?
- How well does it integrate with the other applications within the architecture?
- What kind of documentation and support are available?
- Are all of the costs known up front?
- Do you have or will you have the correct mix of skill sets for the aggregate product?
- Evaluation Framework/Criteria Documentation
An Evaluation Framework/Criteria Documentation allows an organization to compare various products by using the selection criteria (Priorities, Risk and Intangible Matrix) and assigning a weighted value to the criteria. The product with the best score (based on the values) is the preferred product.
Supplier Demonstration Scripts will be developed from the Business Processes Analysis. These demonstration scripts will be in the form of a test case to check the output and validity of each requirement. These scripts will be used by evaluation teams to check the required data, process and reporting of each process. Each test case will have the required success criteria for the process. The scripts will not be automated since these are usually developed using the selected software.
Typical Deliverables:
- Evaluation Framework/Criteria Documentation
- RFI or RFP for ERP System Suppliers
- Priorities Matrix
- Risk Matrix and,
- Intangible Matrix
To discuss in more detail our application development capabilities and implementing a technology solution into your business, please contact Tyler LeCouffe, Senior Business Systems Consultant - Business Systems Innovation, to discuss.
