Simplify Software Implementation

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You’ve weighed your options, done your research and found a software system that you believe will help carry your business to the next level. So what now?

Most software vendors will oversee the implementation of business software, but there are some things business owners need to know before that software CD enters your hardware.

There are likely to be some problems in switching software, but there are ways to minimize that risk.

P&E Distributors, Van Buren, Maine, recently went through two software implementations, says president Ron Ouellette. The first, initiated in August 2004, went live in November 2004, but by February 2005, the company realized the system was not meeting its needs, and a new system was implemented in March 2005.

The original updated system was a “paper monster,” was difficult to work with, and, had the company stayed with the system, it would have required the hire of two additional employees to do the same work the staff was already doing. “We were basically going back in time,” says Ouellette.

Eventually, that software system was removed and a different one was implemented, even though there was no refund from the first vendor. “We ended up swallowing a pill we didn’t want to take, Ouellette says. “It cost us a lot of money to learn a lesson.”

P&E Distributors has worked on computers since 1983, so the company is no novice to implementing new software systems. Ouellette looked into several software options, spoke with members of his buying group and eventually settled on the software system that was implemented in 2004. Taking their advice wound up to be detrimental.

“All of them said that [a certain software system] was the best thing since sliced bread,” Ouellette explains. “After looking into it, I saw that [the certain software system] was their first software and only software.”

P&E Distributors knew there was other software out there and decided since the suggested software wasn’t working, they would look into another option. “We had to learn the hard way, but sometimes you just have to go away from what everybody else is telling you,” says Ouellette.

While you shouldn’t simply follow the advice of others in finding the right system, referrals are important. When Len Silber, head of customer service and chief technical officer for City Group, Jessup, Md., was looking for new software, he spoke with three people to see what they thought of the system he was leaning toward, and ultimately purchased.

“I would be leery of any company selling a product that doesn’t have multiple referrals,” says Silber.

References are also a good resource to have, should any problems arise in the implementation process, says Jim Kelton, president of Altius Technologies Inc., Irvine, Calif. “If you’re having issues, go back to the references and tell them that you spoke with them while you were evaluating the package, and after receiving the package and [tell them] there are some areas where you are struggling and ask if they found the same things,” Kelton offers.

First Steps
In going through the implementation process, both Ouellette and Silber found some things they would recommend considering before and during implementation.

If you have chosen a package, or are nearing the end of your search, Ouellette suggests conducting a detailed evaluation of the software to make sure it meets your needs. Some simple, yet important points to keep in mind include ensuring that the vendor’s system integrates with your suppliers, and that the vendor has the correct numbers and prices.

Re-entering data is the antithesis of the efficiencies you expect to receive from implementing a new software system. This makes conversion of data is another priority in Ouellette’s mind.

Though his company had issues with the conversion of data — due to the three months it was using the first new software system — Ouellette says the transfer of customer history is important.

“It was difficult for us because the old system would override the [November data], so we ultimately had to go with the system that we implemented [in November 2004] and we only had three or four months of history,” Ouellette recalls.

When shopping for a system, it is also crucial to make sure it is easy to navigate. “They should really think of all the demanding questions that their customers ask of them and make sure it is easily attainable within a couple of strokes,” Silber offers. “If it’s too cumbersome to easily look up simple information, you’re going to have a frustrated staff and frustrated customers.”

Finally, to make sure you don’t get stuck with multiple software headaches down the road — as well as additional charges — make sure constant updates are included in your maintenance cost. “A lot of programs, to get an upgrade, will cost you money on top of your maintenance fees,” Ouellette cautions.

Paving Your Path
Paying attention to the way the system is implemented may show you a lot about how it will work for you in the future. Silber says the vendor his company worked with provided excellent support from the beginning, even supplying hands-on training before the company went live the with software.

“If you want to make sure that you like the software before you spend tens of thousands of dollars, it’s important that you get hands-on time before purchasing the software,” Silber says.

Once City Group decided on the system, a vendor technician installed the server and made sure all connections were set up correctly. “Then we had a day or two of collaboration between one or two of the [vendor’s] software techs and they trained everybody in the company on how to use the system for their particular job duties,” Silber says.

After making an informed decision on your software purchase, proper training is perhaps the most important thing a company must look for. First, according to Kelton, you must make sure the employees will embrace the new system.

“One of the things that I’ve found is that if a new technology isn’t at least 20 percent more efficient or offering you time savings, they won’t adopt the new technology,” Kelton says. “They’re so used to the old procedures and they know there’s a learning curve and if they have to do things differently but it won’t save them 20 percent of their day, they think it’s not worth going through that hassle.”

Assuming your business selected a system that will provide efficiencies, most employees will be self-motivated to conquer details of the new software. However, the initial hours of training are still important.

Most vendors do provide on-site training, but Kelton says considerations should not stop there. Training one or two people to prove that the system will be beneficial to the company, and then having them train the rest of the employees is often the best method.

“We’ve found the greatest success when the software vendor picks one or two people that are very excited and those people buy into it and they can show the rest of the employees how to use it,” Kelton says. “These ‘key users’ tend to be someone with a vested interest, usually people in accounting.”

When training, it is important to make sure that the employee isn’t distracted. “When training on-site, I’ve seen employees that are so caught up in their day-to-day duties, it’s hard to get them out of work mode and into training,” says Kelton. If training is done on-site, it is preferable to hold the training session in a room or office away from the employee’s work area, so the trainer will have the employee’s undivided attention.

Some vendors offer trial periods, typically 30 days. That may not be enough time to run reports and see what the system is really doing for your company, and Kelton says it is acceptable to ask for an extension on your trial period.

“If you’re still not confident about the system, call and ask for another 30 days and explain that you didn’t have enough time to work with it,” Kelton offers. “I think they would do that because they really want to have a sale versus having you move onto another vendor because you never really had the time to evaluate their package.”

Protecting your software is another aspect that can easily be added to the implementation process. One consideration is software licensing. Whereas in the past, only one software license was needed for each software user, the number of licenses needed is now based on the number of computers the software is used on. “Instead of buying three licenses for three users, you will have to buy, say, five, because that’s the number of computers the software run on,” Kelton explains.

The implementation period is also a good time to evaluate security. While many small businesses want employees to have broad access to all information about the business, it is important to decide what the risks are if your business’s information is disclosed to someone, such as a competitor. “You want to think about your internal and external threats and then take appropriate measures to safeguard your data,” Kelton warns.

Making sure the system you select will meet your needs, going through a hands-on experience or a trial period before purchase, having an informed plan for training, and ensuring there are measures in place to protect your software for the long haul are all steps that need to be considered when beginning the implementation of your new software.