Selecting Software Made Selecting Software Made

EasyEasy (Well, Easier)(Well, Easier)

Sallie ColemanSallie Coleman

Heavily adapted from Heavily adapted from The Accounting LibraryThe Accounting Library manuals and presentation manuals and presentation

material from Charles C. Chewning, Jr.material from Charles C. Chewning, Jr.

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BackgroundBackground

Late 2000 – Clarus announces they will Late 2000 – Clarus announces they will no longer support or upgrade their no longer support or upgrade their accounting software as of March 2002 accounting software as of March 2002

Early 2001 – Work with IS using Early 2001 – Work with IS using The The Accounting LibraryAccounting Library to determine the to determine the best accounting system for MEAGbest accounting system for MEAG

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Background Background (continued)(continued)

May – October 2001 – a staff May – October 2001 – a staff accountant, an IS developer, an IS accountant, an IS developer, an IS project manager, and the accounting project manager, and the accounting manager work almost full-time on manager work almost full-time on converting Clarus and implementing converting Clarus and implementing Great Plains. Conduct one-month Great Plains. Conduct one-month parallel in test environment.parallel in test environment.

October 2001 – Go live!October 2001 – Go live!

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Background Background (continued)(continued)

MEAG specifications:MEAG specifications:Between $500M and $600M annual Between $500M and $600M annual

revenuesrevenuesNonprofitNonprofitQuasi-fund accounting – nine self-balancing Quasi-fund accounting – nine self-balancing

projects (and more to come)projects (and more to come)Approximately 100 bank accounts – Approximately 100 bank accounts –

revenue deposits and expense payments revenue deposits and expense payments are cash-account specific are cash-account specific

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Background Background (continued)(continued)

Overall MEAG experienceOverall MEAG experienceGreat dynamic between IS and Great dynamic between IS and

Accounting to address as many needs Accounting to address as many needs as possibleas possible

Horrible VAR experience Horrible VAR experience Ultimately a very successful conversionUltimately a very successful conversionOngoing needs: analysis, upgrades, and Ongoing needs: analysis, upgrades, and

supplemental in-house programssupplemental in-house programs

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The five stages of an IT project

Enthusiasm for the goals

Disillusionment with the progress

Persecution of the innocent

Praise for the nonparticipants

©2001 TechRepublic, Inc. www.techrepublic.com. All rights reserved.

Search for the guilty

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FactsFacts

Organization of the software selection Organization of the software selection process is the single most critical process is the single most critical success factorsuccess factor

Since decisions are made by your Since decisions are made by your people, not your system, your ultimate people, not your system, your ultimate success depends on your staffsuccess depends on your staff

The wrong system will have little or no The wrong system will have little or no effecteffect

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SelectionSelection Process Overview Process Overview

Step 1 – Educate yourselfStep 1 – Educate yourself

Step 2 – Define your objectivesStep 2 – Define your objectives

Step 3 – Justify the decisionStep 3 – Justify the decision

Step 4 – Identify all critical elementsStep 4 – Identify all critical elements

Step 5 – Develop a management planStep 5 – Develop a management plan

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Selection Process Overview Selection Process Overview (continued)(continued)

Step 6 – Form project team(s)Step 6 – Form project team(s)

Step 7 – Develop an operational planStep 7 – Develop an operational plan

Step 8 – Identify your preliminary needsStep 8 – Identify your preliminary needs

Step 9 – Product analysisStep 9 – Product analysis

Step 10 – Final decision and Step 10 – Final decision and implementation implementation (Jamie)(Jamie)

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Step 1Step 1

Educate YourselfEducate Yourself

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Educate yourselfEducate yourselfWhy do you want to replace your Why do you want to replace your

existing system? existing system? Can you afford automation?Can you afford automation?Do you and your staff have the technical Do you and your staff have the technical

skills to operate the system(s) you are skills to operate the system(s) you are considering?considering?

What are the potential stumbling blocks?What are the potential stumbling blocks?BudgetaryBudgetaryTimeTimeInternal resistance (active/passive)Internal resistance (active/passive)

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Step 2Step 2

Define Your ObjectivesDefine Your Objectives

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Define your objectivesDefine your objectives

Where have we been?Where have we been?Where are we going?Where are we going?Where should we be going?Where should we be going?How can the IS system help us help How can the IS system help us help

ourselves?ourselves?

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Step 3Step 3

Justify the DecisionJustify the Decision

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Justify the decisionJustify the decision

Investments in information and Investments in information and financial management systems need to financial management systems need to be justified just as any other capital be justified just as any other capital investmentinvestment

You need to analyze and justify your You need to analyze and justify your organization’s ability to achieve the organization’s ability to achieve the desired goaldesired goal

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Justify the decision Justify the decision (continued)(continued)

If your project is going to be successful If your project is going to be successful you must have the buy-in from each you must have the buy-in from each critical groupcritical group

Senior managementSenior management Line managementLine management EmployeesEmployees

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Step 4Step 4

Identify All Critical ElementsIdentify All Critical Elements

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Identify all critical elementsIdentify all critical elements

Organizational imperativesOrganizational imperativesSelection complexitySelection complexityCritical functional requirementsCritical functional requirementsMurphy’s lawMurphy’s lawCommitment and ability to changeCommitment and ability to change

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Identify all critical elementsIdentify all critical elements (continued)(continued)

Basic accountingBasic accountingOperations managementOperations managementSales and marketingSales and marketingPersonnel managementPersonnel managementOrganizational objectives & strategiesOrganizational objectives & strategies Information managementInformation management

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Step 5Step 5

Develop a Management PlanDevelop a Management Plan

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Develop a management planDevelop a management plan

Critical issuesCritical issuesOutside business partnersOutside business partners Initial project management planInitial project management plan

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Step 6Step 6

Form Project TeamsForm Project Teams

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Form project teamsForm project teams

Functional responsibilitiesFunctional responsibilitiesWho is going to do what?Who is going to do what?

Management responsibilitiesManagement responsibilitiesWho is going to make sure it gets done?Who is going to make sure it gets done?

Key success factorsKey success factorsWhat do we need to do and why?What do we need to do and why?

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Step 7Step 7

Develop an Operational PlanDevelop an Operational Plan

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Develop an operational planDevelop an operational plan

Expand initial project planExpand initial project planProject control systemsProject control systems

Project/meeting managementProject/meeting management

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Project/meeting managementProject/meeting management

Establish specific individual and group Establish specific individual and group responsibilitiesresponsibilities

Encourage brainstorming and reject nothing Encourage brainstorming and reject nothing out of handout of hand

Give people the right and responsibility to Give people the right and responsibility to comment critically on comment critically on allall subjects (not subjects (not criticize)criticize)

Gain everyone’s complete support and active Gain everyone’s complete support and active participationparticipation

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Step 8Step 8

Identify Your Preliminary NeedsIdentify Your Preliminary Needs

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Identify your preliminary needsIdentify your preliminary needs

Basic researchBasic researchCurrent and potential system analysisCurrent and potential system analysisNeeds definition formsNeeds definition formsDetailed needs definitionDetailed needs definition

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Basic researchBasic research

Accounting and trade or industry Accounting and trade or industry publicationspublications

Web search for products and articlesWeb search for products and articlesChamber of CommerceChamber of CommerceBusiness associatesBusiness associatesCompetitorsCompetitorsSoftware vendors, implementation firms, Software vendors, implementation firms,

or consultantsor consultantsSeminars and trade showsSeminars and trade showsThe Accounting LibraryThe Accounting Library

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Current & potential system Current & potential system analysisanalysis

Strategic effectivenessStrategic effectivenessOperational effectivenessOperational effectivenessData input efficiencyData input efficiencyData processing efficiencyData processing efficiencyOutput effectivenessOutput effectiveness

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Current & potential system analysis Current & potential system analysis (continued)(continued)

Product developmentProduct developmentHardwareHardwareVendor and value-added reseller (VAR) Vendor and value-added reseller (VAR)

supportsupport

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Needs definition formsNeeds definition forms

What do you need to do your job well?What do you need to do your job well?ToolsToolsInformationInformationReportsReportsProcessesProcessesStructureStructure

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Needs definition formsNeeds definition forms (continued)(continued)

Individual/departmental/corporate Individual/departmental/corporate success factorssuccess factors

Job/workgroup responsibilitiesJob/workgroup responsibilitiesRequired toolsRequired tools Inbound, outbound, and filed data and Inbound, outbound, and filed data and

reportsreports

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Needs definition formsNeeds definition forms (continued)(continued)

Most significant problemsMost significant problemsWhat works well right now?What works well right now?What needs to be improved and how?What needs to be improved and how?How can we improve efficiency?How can we improve efficiency?How can we improve effectiveness?How can we improve effectiveness?Do we have additional reporting needs?Do we have additional reporting needs?Wish listWish list

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Detailed needs definitionDetailed needs definition

Review and summarize preliminary Review and summarize preliminary needs definition formsneeds definition forms

Expand preliminary needs definition:Expand preliminary needs definition:StrategicStrategicAccountingAccountingOperationalOperationalPersonnelPersonnel

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Detailed needs definition Detailed needs definition (continued)(continued)

Critique reporting system in detailCritique reporting system in detailReview audit trail requirementsReview audit trail requirements Identify critical problemsIdentify critical problemsDefine technical requirements:Define technical requirements:

Field sizesField sizesDatabase/language/operating systemDatabase/language/operating systemTransaction volumesTransaction volumes

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Step 9Step 9

Product AnalysisProduct Analysis

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Product analysisProduct analysis

Define critical requirementsDefine critical requirementsCompare and rank productsCompare and rank products

Evaluation processEvaluation processEvaluation factorsEvaluation factorsThe Accounting LibraryThe Accounting Library

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Define critical requirementsDefine critical requirements

Identify the most critical factors and Identify the most critical factors and assign a relative importance to eachassign a relative importance to each

Identify products which meet these Identify products which meet these critical requirementscritical requirements

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Compare and rank productsCompare and rank products

Compare and rank productsCompare and rank productsRequest for information (RFI)Request for information (RFI)Spreadsheet analysisSpreadsheet analysisThe Accounting LibraryThe Accounting Library

Identify best-suited productsIdentify best-suited products Identify strengths and weaknessesIdentify strengths and weaknesses

RelativeRelativeSpecificSpecific

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Evaluation processEvaluation process

Confirm best-suited product(s)Confirm best-suited product(s)Conduct scripted demosConduct scripted demos Identify employee favoritesIdentify employee favoritesEvaluate product complexityEvaluate product complexityAssess vendor/VAR/implementers Assess vendor/VAR/implementers

cooperation and knowledgecooperation and knowledge

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Evaluation processEvaluation process (continued)(continued)

Notify semi-finalistsNotify semi-finalistsEvaluate their responsesEvaluate their responses Initial vendor/VAR meetingInitial vendor/VAR meetingSecond vendor/VAR meetingSecond vendor/VAR meetingSite visitsSite visits

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Evaluation processEvaluation process (continued)(continued)

Check referencesCheck referencesSelect finalistsSelect finalistsPre-contract/bid discussionsPre-contract/bid discussionsRequest for proposal (optional)Request for proposal (optional)Final decisionFinal decision

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Evaluation factorsEvaluation factors

Degree of fit out-of-the-boxDegree of fit out-of-the-boxMissing features?Missing features?

Report writersReport writersAdded fieldsAdded fieldsThird party applicationsThird party applicationsFuture releasesFuture releasesModificationsModifications

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Evaluation factorsEvaluation factors (continued)(continued)

Present vs. future requirementsPresent vs. future requirementsMenu structureMenu structure Input screens and proceduresInput screens and proceduresSupport for current business processesSupport for current business processesSpeed and reliabilitySpeed and reliabilityComplexityComplexityUser comfort and overall ease-of-useUser comfort and overall ease-of-use

4646

Evaluation factorsEvaluation factors (continued)(continued)

SupportSupportDocumentationDocumentationReporting systemReporting systemVendor and VAR evaluationVendor and VAR evaluation

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The Accounting LibraryThe Accounting LibrarySelect from over 120+ productsSelect from over 120+ productsAnalyze over 1,250 features, functions, Analyze over 1,250 features, functions,

and reportsand reportsAssign greater weight to critical featuresAssign greater weight to critical featuresRank products according to how well Rank products according to how well

they meet your company’s unique needsthey meet your company’s unique needsRestrict the output to only products you Restrict the output to only products you

can affordcan afford

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The Accounting Library The Accounting Library (continued)(continued)

Pricing informationPricing informationStandard editionStandard edition $ 395$ 395 (2,500 ?s)(2,500 ?s)Client server editionClient server edition $ 750$ 750 (4,000 ?s)(4,000 ?s)Modifiable editionModifiable edition $1,295$1,295 (4,000 ?s)(4,000 ?s)

(Includes analysis program as well as (Includes analysis program as well as 500+ page set of manuals to help you 500+ page set of manuals to help you complete your needs analysis)complete your needs analysis)

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Step 10Step 10

Final Decision and Final Decision and ImplementationImplementation

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Closing ThoughtsClosing Thoughts

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Process improvement is a Process improvement is a critical first step. Merely critical first step. Merely duplicating what you do duplicating what you do

today will achieve virtually today will achieve virtually nothing.nothing.

5656

The most powerful business The most powerful business management system will management system will have little or no effect if it have little or no effect if it does not help people carry does not help people carry out their job responsibilities out their job responsibilities

more effectively and more effectively and efficiently.efficiently.

5757

The best product for you may The best product for you may not be the most powerful, not be the most powerful,

best known or most best known or most expensive. It is the product expensive. It is the product

the majority of your the majority of your employees see as a true employees see as a true

asset to their and the asset to their and the company’s success.company’s success.

5858

Your people are your single Your people are your single most important asset. Draw most important asset. Draw on their wealth of knowledge on their wealth of knowledge

as you go through the as you go through the selection process.selection process.

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Selecting and implementing a Selecting and implementing a new accounting system should new accounting system should take you from where you are take you from where you are

today to where you want to be today to where you want to be tomorrow. tomorrow.

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Don’t be afraid Don’t be afraid to shoot for the moon.to shoot for the moon.

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Thank YouThank You