Contact information.
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Address"Ekzarh Yosif" street, 31, 1000 Sofia, Bulgaria
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Phone:+359 2 980 95 99
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Websitewww.balkanservices.com
4 business software implementation challenges – what do the experts advise
In today’s reality, no company can grow and be competitive without the help of modern technology. Choosing the right IT system is a complex but critically important decision. And this is just the beginning.
The processes of need awareness, selection, and implementation of business software take place individually for each company.
Over the years, we have completed several hundred information systems implementation projects in medium and large companies and have observed that there are pitfalls with serious negative consequences if not addressed in a timely manner.
Our experience has shown that organizations face the following 4 challenges on the way to business process digitalization:
❓ How to choose the right software solution for them
❓ What are the key business processes they need to optimize
❓ What budget to plan in order to implement the project in the best possible way
❓ How to engage key employees in the project and counter-resistance
For answers, more on the challenges of implementing business software, and tips on how they can be overcome, we share expert opinion in the following lines.
Challenge #1: Choosing a System Type
Your company’s development, efficiency, agility, growth, and entry into foreign markets depend directly on the decision about the type of business software. The importance of this decision should not be overlooked and you need to devote the necessary time and attention to it.
To choose the right software solution, you need to answer two basic questions:
1. What are your business needs?
2. What are the expected benefits of working with the system – now and in the future?
The answers require a thorough business analysis, which you can do with your team’s resources or entrust to experienced outside consultants.
Evaluating benefits is a difficult task because not all are quantifiable. Based on the short-term and long-term benefits of implemented business software, companies grow in terms of competitiveness, efficiency, and profitability.
Types of business software by focus
1. Transactional
The main type of solutions that any established company cannot run their business without are those that organize and structure data within an organization. Such software are for example ERP, WMS, CRM systems.
2. Analytics
They help to unite data from different sources, unify, analyze, and visualize them. Such are Business Intelligence platforms. BI tools greatly facilitate and accelerate effective management decision-making.
3. Specialized for a particular business segment
They are narrowly focused on managing a particular area of business such as finance, planning, etc. Examples of such solutions are the specialized financial performance management system LucaNet and the financial disclosure tool SmartNotes.
Consulting companies, on the other hand, have a wealth of experience and knowledge in business software – a variety of solutions, their capabilities, etc.
In many cases, what you think you need may turn out to be a secondary need after performing a thorough business analysis.
We see this a lot in practice.
In some cases, a system with fewer capabilities implemented by experienced consultants yields better results than implementing a comprehensive solution.
Read more: Business Intelligence software- what, for whom and why
Challenge #2: Balance functionality and efficiency
After selecting the type of system, it’s time for another key step in the process – defining the scope of the project. Skipping this phase leads to the implementation of a non-functional system that does not meet the company’s needs.
Mandatory aspects in defining the scope are:
• What is the current state – problems, challenges, business processes;
• What is the desired outcome – post-implementation way of working, new employee duties, reduction of operational activities.
Be aware that the more features you want to include, the more complex the system and the whole project gets. This makes it harder and slower for employees, lowers their motivation, and ultimately you won’t get the desired effect of automating processes and making work easier.
Implementing business software is a time-consuming process, and a good balance is achieved by taking care in defining the scope at the outset and implementing the minor features at a later phase of the project.
The market is more dynamic than ever and this may require changes to the business model.
Direct your software choice towards a flexible system, with the ability to upgrade and work from anywhere, anytime. An example of this type of solution is the NetSuite cloud ERP system.
By implementing such a software solution, you’ll have peace of mind that the technology will keep pace with your organization’s evolution and future changes to your business model.
Looking for business software?
Our team is here to listen carefully and offer the right solution for you.
Challenge #3: Hidden Costs in Business Software Implementation
Budget calculation in a business software implementation project has peculiarities. If you don’t have experience with similar projects there is a risk of unforeseen costs in the future.
Hidden costs can be related to:
1. Business process exceptions
It is a good practice to have the scope of the business software implementation project spelled out to the smallest detail and to address business process exceptions.
2. Investments in hardware and system software
In addition to the licenses, implementation services, and subsequent maintenance, funds are needed for the hardware and the conditions for it to function properly.
These costs are most often related to the purchase and availability of: own servers and backup (storage) devices, as well as software for them; server room; power protection (UPS); backup space (preferably in another location) and automation of the backup process; additional guaranteed internet connection; backup server if the main server is down; need for additional information protection; IT maintenance costs, etc.
3. Software update
A hidden cost can be the update of the business software with a new version. When the installation is at the customer (on-premises), sometimes a heavy re-implementation of the new version is required, and it may also require more powerful servers and upgraded operating systems.
4. Internal costs
We observe that companies often underestimate the investment in human capital in their initial planning.
Therefore, you should support them throughout the process and not neglect their investment in them.
An IT consulting company, no matter how much experience it has, is unable to successfully implement a business process management system without the active involvement of an internal team from the client side.
Challenge #4: Dealing with resistance
For an organization’s employees, implementing business software involves a change in the work process that entails complying with new rules and requirements.
They will make things happen, they will be the first to test the business software, learn how to work with it, and develop their professional skills.
It’s important to find those people in your company who will go all the way and help get the software implemented and used by other employees.
Some employees fear they may be out of a job after the new software is implemented.
Technology automates routine tasks and employees have more time to think, analyze, indulge in more creative activities, and seek new opportunities.
In conclusion, we can summarize that when planning a business software implementation project, it is a good idea to first clarify what type of solution you need.
If you have already started the project – identify the employees who are able to involve others in the process.
With the dynamic development of technology, business process automation software is becoming a key asset for any organization that gives a head start, allows businesses to grow at an accelerated pace, and be more competitive in the global market.
At Balkan Services, we have expert knowledge of business and technology and speak both languages. We will listen carefully and advise you on choosing the right business system for your needs.
Balkan Services has been implementing business software since 2006 and has completed more than 690 projects for over 360 companies. We follow a proven implementation methodology with clear steps and know-how on best practices.
