The business, or accounting, system is the spine of the company. If designed well it will incorporate all business records, both financial and communications. Reporting and retrieval of information should be a built design requirement. Having information at your fingertips is critical to customer satisfaction and good decision making. A lot of management and staff time is either saved or wasted as a direct consequence of the system you choose. Good systems can make businesses, bad ones can break them.
In the 21st century, the latest computer systems can shoulder an enormous processing burden which, with older systems, would otherwise be carried out by staff. Reports and information should be clear and near-instantaneous.
The Board should set a budget, and be prepared to be flexible. It is likely that the research process will identify additional add-ons with significant potential benefits.
John Ruskin, 1819-1900 Author, Influential Critic, Philosopher
"It's unwise to pay too much, but it's unwise to pay too little.
When you pay too much you lose a little money, that is all.
When you pay too little, you sometimes lose everything,
because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business prohibits paying a little and getting a lot - it can't be done.
If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better."
Identify your stakeholders. Who will be affected, and how? Who is crying out for changes? Who isn’t and why?
Consider why change fails. Know the reasons from the outset. Be vigilant and not complacent. Review the evidence of progress. Ensure the tasks ticked off.
Appoint a team
Not a committee. Make sure all key departments are represented, and that they know who is representing them.
Log and publish all decisions and the reasons, unless justifiably confidential.
Allow creative input from staff. Set time aside to for some hard thinking for critical changes. Bite the bullet. Maybe pay overtime to a core team, maybe send them away from the office.
Maintain a Project Log, which includes all tasks, design issues, notes on old/new system differences, timescales and ensure that all tasks are assigned to individuals with timescales.
A GANTT chart may be required to ensure that all tasks which must be done in sequence, can be completed in the time available. Larger companies may use project management software for this.
Identify Requirements
This is the beginning of the change process: What do we want to achieve, and why?
In SME’s (small and medium sized enterprises) the involvement of the Board and Senior Management is critical. The potential for benefit and waste is huge. The broad requirements of a new system should be decided at Board level. The system selection process should then be regularly monitored to ensure the requirements are met.
Each department should list its requirements, carefully differentiating between critical, highly desirable and ‘nice-to-have’. Be prepared for compromise – particularly if this means that the company will have to change the way it operates.
It is quite common that systems implemented 10 or more years ago were designed for the business, and some senior managers at the time authorised expensive software modifications to meet the needs at the time. It needs a serious discussion and decision if these are to be replicated in the new system. Are such enhancements essential to customer satisfaction and profitability?
It would be wise to do calculations on some changes. For example, if a customer / product sales discount system cannot be replicated in the new system, will this result in sacrificing margin? Even 1% of sales can be more expensive than the entire cost of the new system.
The Finance Department should identify all accounts processes and see them demonstrated, not simply receive verbal assurances.
The Sales Department should review the pricing structures, CRM processes, order processing, and margin reporting.
Each requirement should be categorised:
- Fully available in the system as standard
- Not available – a company policy will need changing
- Not available – a solution outside of the system is required
- Not available – a system enhancement is required
