Successful Packaged Software Implementation

by Tayntor; Christine B.

• ISBN13: 9780849334108
• ISBN10: 0849334101
• Format: Hardcover
• Copyright: 2005-09-14
• Publisher: CRC Press

Summary

"…does an excellent job of covering all aspects of incorporating vendor-supplied software into an organization. …provides a complete process that will help reader avoid costly mistakes. …captures many years of experience in working these types of projects in a thorough, very detailed but readable style. The extraordinary coverage offers something for everyone-higher management, project manager, or IT worker. …a must read for anyone who works with commercial, off-the-shelf software solution."? Noel LeJeune, www.StickyMinds.comSuccessful Packaged Software Implementation guides IT departments through the selection and implementation of packaged software, pointing out potential pitfalls and how to avoid them. Offering a step-by-step approach, this volume begins with an assessment as to whether packaged software is the correct solution. It then analyzes the product selection and contract negotiation processes before addressing the technical details of installation and configuration. Although focusing primarily on acquiring, installing, and implementing applications software (the most complex category of software from an IT manager's viewpoint) this book also is applicable to shrink-wrapped and system software.

Table of Contents

SECTION I: Planning
1 Getting Started	3	(10)
The Packaged Software Dilemma	3	(3)
Expectations	3	(1)
The Horror Stories	4	(2)
The Decision	6	(1)
Types of Software	6	(1)
Target Audience	7	(1)
Implementation versus Installation	7	(1)
Is Packaged Software the Answer?	8	(2)
Criteria for Success	10	(1)
Realistic Expectations	10	(1)
Organizational Flexibility	11	(1)
Reference	11	(2)
2 The First Steps	13	(16)
The Need for a Formal Selection Process	13	(1)
Step 1: Form the Selection Team	14	(1)
The Project Charter	14	(6)
Clarity	14	(1)
Commitment	15	(5)
Conciseness	20	(1)
Team Selection	20	(3)
Composition	20	(2)
Size	22	(1)
Continuity	22	(1)
The Team Leader	23	(2)
Key Characteristics	23	(1)
End User versus IT	24	(1)
One versus Two	24	(1)
Facilitators	25	(1)
Outside Advisors	25	(4)
SECTION II: The Selection Process
3 Identifying Requirements and Potential Products	29	(18)
The Selection Process — Step 2: Identify and Prioritize Requirements	29	(1)
Identifying Requirements	30	(1)
Functional Requirements	30	(9)
Question 1: What Is the Current Process?	31	(1)
Question 2: What Is Missing from the Current Process, and What in It Does Not Work Properly?	31	(6)
Question 3: Which of the Items Identified in the Previous Question Must Be Corrected by the New System?	37	(1)
Question 4: What Criteria Will Be Used to Prove That the Proposed System Satisfies the Requirements?	38	(1)
Technical Requirements	39	(1)
Vendor-Related Requirements	39	(1)
Prioritizing Requirements	39	(6)
Categorize Each Requirement	42	(1)
Assign Importance Rankings	42	(2)
Document the Desired Response	44	(1)
The Selection Process — Step 3: Identify Potential Products	45	(2)
4 RFPs and RFIs	47	(16)
RFI versus RFP — What Is the Difference?	47	(1)
What Is the Value of an RFP?	48	(1)
To Increase the Objectivity of the Evaluation	48	(1)
To Ensure That All Key Requirements Are Included in the Evaluation	48	(1)
To Separate Facts from Vendor Marketing Hype	49	(1)
What Are the Disadvantages?	49	(1)
Effort	49	(1)
Timeframe	49	(1)
When Is an RFP Needed?	50	(10)
Contents of an RFP	51	(13)
1. Introduction and Background	51	(1)
2. General Information	52	(3)
3. Vendor Profile	55	(1)
4. Term	56	(1)
5. Termination	56	(1)
6. Specific Project Requirements	57	(1)
7. Program Management	57	(1)
8. Vendor Staffing	58	(1)
9. Work Space and Other Vendor Requirements	58	(1)
10. Vendor Tools	58	(1)
11. Cost Proposal	58	(1)
12. Proposed Schedule	59	(1)
13. Payment Terms	59	(1)
14. Vendor Nonperformance	59	(1)
15. Changes in Scope	59	(1)
Ranking RFP Sections	60	(3)
5 Product and Vendor Evaluation	63	(22)
Step 1: Team Evaluates Responses and Creates Short List of Vendors	64	(9)
Review of Mandatory Items	64	(1)
Evaluation of All Critical and Nice-to-Have Items	65	(2)
Creation of Composite Ranking Spreadsheet	67	(1)
Selection of Short-List Vendors	67	(6)
Step 2: Team Schedules Vendor Presentations	73	(3)
Scheduling	73	(1)
Agenda	74	(1)
Evaluation	74	(2)
Step 3: Team Checks Vendor References	76	(2)
Step 4: Short-List Vendors Present Their Products (Standard Demo) and Capabilities	78	(1)
Step 5: Team Evaluates Presentations and Creates Finalist List of Vendors	78	(1)
Step 6: Team Conducts Site Visits to Key Customers of Finalist Vendors	78	(1)
Step 7: Finalist Vendors Present Customized Demos of Products	79	(1)
Step 8: Team Determines Whether to Negotiate with All Finalists	80	(5)
Scripted Presentations	81	(4)
SECTION III: Legal Issues — Contracts and Software Licenses
6 The Negotiation Process	85	(14)
Types of Contracts	86	(1)
Project Team Involvement in Negotiations	87	(1)
Other Team Members	88	(1)
Basic Precepts	89	(2)
1. Contracts Are Drafted to the Author's Advantage	90	(1)
2. Vendors Have More Expertise in Contract Negotiations Than the Company	90	(1)
3. It Is Essential to Understand Every Clause in the Contract	91	(1)
4. Everything Is Negotiable	91	(1)
Improving the Company's Negotiating Position	91	(3)
1. Negotiate with More Vendors Than Needed	92	(1)
2. Consider Timing	92	(1)
3. Establish the Ground Rules	92	(1)
Determine the Type of Negotiating Session	92	(1)
Determine the Length of Negotiating Sessions	93	(1)
Determine the Timing of Negotiating Sessions	93	(1)
Limit the Number of Negotiators	93	(1)
4. Do Not Begin Work without a Signed Contract	93	(1)
The Negotiation Process	94	(5)
1. Review the Contract	94	(1)
2. Determine Company's Position on Each Point	94	(1)
3. Categorize Required Changes	95	(1)
Determine Who Will Lead the Sessions	95	(1)
Establish Ownership of the Document	96	(1)
Provide for Breakout or Offline Discussions	96	(1)
Keep Accurate Records of Discussions and Open Items	96	(3)
7 Key Elements of Software Licenses	99	(12)
Introduction	100	(1)
Definitions	101	(1)
Term	102	(1)
Termination	102	(2)
Termination for Breach of Contract	102	(1)
Termination for Convenience	103	(1)
License	104	(1)
Deliverables	105	(1)
Schedule for Deliverables	105	(1)
Maintenance (If Contained in the Base Software License)	105	(1)
Fees and Payment Terms	106	(1)
Confidentiality and Protection of Data	107	(1)
Representations and Warranties	107	(1)
Indemnification	108	(1)
Limitation of Liability	108	(1)
Miscellaneous Provisions	109	(2)
8 Professional Services Agreements	111	(12)
Who?	112	(4)
Qualifications	113	(1)
Interviewing	113	(1)
Dismissal	113	(1)
Replacement Policy	113
Management	111	(3)
Solicitation Policy	114	(1)
Noncompete	114	(1)
Subcontractors	114	(1)
Background Checks	115	(1)
On-Site Considerations	115	(1)
Nondisclosure Agreement	115	(1)
What?	116	(3)
Acceptance of Deliverables	116	(1)
Ownership of Deliverables	117	(1)
Changes in Scope	117	(2)
Reporting	119	(1)
Use of Company Resources	119	(1)
Where?	119	(1)
Fee Related	119	(3)
Fixed Price	119	(1)
Time and Materials	120	(1)
Time and Materials Not-to-Exceed	121	(1)
Expenses	121	(1)
Miscellaneous	122	(1)
9 Service Contracts and Statements of Work	123
Two-Tiered Contracts	123	(3)
Terms and Conditions Are Negotiated Only Once	125	(1)
Master Services Agreement Negotiations Are Streamlined	125	(1)
Attorney Time May Be Reduced	125	(1)
It Is Not Necessary To Know All Work That Will Be Involved at the Beginning of the Project	125	(1)
Master Services Agreement	126	(3)
References to Statements of Work	126	(1)
Definition of Types of Work To Be Performed	126	(1)
Format of Statement of Work	127	(1)
Order of Precedence	127	(1)
Termination for Convenience	127	(1)
Termination for Force Majeure	127	(1)
Reporting	128	(1)
Auditing	128	(1)
Service Level and Deliverable Credits	128	(1)
Steering Committee	129	(1)
Statements of Work	129	(8)
Development Statements of Work	130	(1)
Support Statements of Work	131	(1)
Service-Level Agreements	132	(5)
SECTION IV: Implementation Considerations
10 Establishing the Roadmap	137	(58)
Will the Company Use an Application Service Provider or Install the Software on Its Machines?	137	(3)
Will Implementation Be "Big Bang" or Phased?	140	(3)
Big Bang	141	(1)
Advantages	141	(1)
Disadvantages	142	(1)
What Will Be Included in Each Phase?	143	(3)
Phased by Site	143	(2)
Phased by Functionality	145	(1)
Phased by Both Functionality and Site	145	(1)
How Are Phases Chosen?	146	(2)
Choosing the Initial Site	146	(1)
Choosing the Initial Functionality	147	(1)
Will There Be Parallel Runs?	148	(1)
Communicating the Roadmap	148	(1)
11 Who Is In Charge?	149	(1)
Architect, General Contractor, or Skilled Trade?	150	(1)
Architect	150	(1)
General Contractor	150	(1)
Skilled Trade	150	(1)
Sources of Assistance	151	(2)
Systems Integrator	151	(1)
Boutique Firms	152	(1)
General Purpose Staffing Company	152	(1)
The Turnkey Alternative	153	(1)
Sources of Assistance	154	(1)
Company Ownership with Assistance from Outside Firms	154	(2)
Sources of Assistance	156	(1)
The Program Management Office	156	(1)
Responsibilities	157	(1)
Other Key Decisions	157	(3)
How Much Control Will the Outside Firms Have?	158	(1)
How Much Involvement Will In-House IT Staff Have?	158	(1)
Who Will Coordinate the Outside Firms' Work If There Is More Than One?	158	(1)
Will the Company Outsource Work to the Outside Firms or Use Them for Staff Augmentation?	159	(1)
The Champion	160	(1)
The Implementation Team	161	(2)
12 Selling the Solution	163	(1)
What Is Involved?	163	(1)
Step 1: Calculate the Costs of the Proposed Solution	164	(1)
Step 2: Calculate the Costs of the Current Process	165	(2)
Step 3: Identify the Benefits of the Proposed Solution	167	(1)
Cost Reduction	167	(1)
Cost Avoidance	167	(1)
Quality Improvement	168	(1)
Increased Functionality	168	(1)
Step 4: Calculate Return on Investment	168	(1)
Step 5: Outline the Implementation Schedule	169	(3)
Step 6: Develop the Business Case and Presentation	172	(2)
Step 7: Presell the Solution	174	(1)
Step 8: Present the Solution	175	(1)
References	175	(2)
13 Organizational Readiness	177	(1)
The Basics of Change	178	(1)
Roles Associated with Change	179	(1)
The Impact of Change	180	(1)
Components of Successful Change	181	(2)
Commitment	182	(1)
Sustainability	182	(1)
The Critical Element: Communication	183	(1)
Clear	183	(1)
Consistent	184	(1)
Targeted	184	(1)
Ongoing	184	(1)
The Rumor Mill	184	(1)
Formal Communication	185	(4)
Key Messages	186	(1)
Schedule	187	(1)
Frequently Asked Questions	187	(2)
Informal Communications	189	(1)
Coping with Conflict	189	(1)
References	190	(5)
Section V: Implementation
14 The Ground Rules	195	(68)
The Need for a Rule Book	195	(1)
Step 1: Establish and Publish Standards	196	(2)
Coding	196	(1)
Testing	197	(1)
Documentation	198	(1)
Need for Review and Approval	198	(1)
Step 2: Develop and Monitor the Schedule	199	(1)
Micromanagement	199	(1)
Review Regularly	200	(1)
Step 3: Define and Implement Change Management	200	(3)
Software and Documentation	201	(1)
Scope	202	(1)
Schedule	202	(1)
Champion	202	(1)
Step 4: Create and Follow Communication Protocols	203	(3)
Routine Communication	203	(1)
Exception Reporting	203	(2)
15 Software Installation	205	(1)
Step 1: Prepare the Infrastructure	206	(2)
Servers	206	(1)
Database	207	(1)
Firewall	207	(1)
User Interface	208	(1)
Step 2: Install Vanilla Code	208	(1)
Dealing with Problems	208	(1)
Step 3: Test the Vanilla Code with Vendor-Supplied Data	209	(2)
Step 4: Test the Vanilla Code with Company-Specific Data	211	(3)
Step 5: Test the Software in the Real World	214	(2)
Step 6: Review the Documentation	216	(1)
16 Configuration	217	(1)
The Configuration Conundrum	217	(1)
Definition	218	(3)
Coding	221	(1)
Testing	221	(1)
Reference	222	(1)
17 Interfaces and Conversions	223	(1)
Interfaces	224	(1)
Planning	224	(3)
Which Legacy Systems Require an Interface?	225	(1)
What Type of Interface Is Needed?	225	(1)
Which Direction Is Data Transferred?	226	(1)
How Frequently Will the Interface Be Run?	226	(1)
How Long Will the Interface Be Needed?	226	(1)
Definition	227	(1)
Coding	227	(1)
Testing	228	(1)
Data Conversion	228	(1)
Planning	228	(3)
What Data Will Be Converted?	228	(2)
Where Do Those Data Currently Exist?	230	(1)
What Is the Volume of Data To Be Converted?	230	(1)
How Clean Are the Data?	230	(1)
If Needed, Can Code Translation Be Automated?	230	(1)
Will the Conversion Be Automated or Manual?	231	(1)
Who Is Responsible for the Conversion?	231	(1)
Definition	231	(1)
Coding	231	(1)
Testing	232	(1)
18 Customizations	233	(1)
Reports	233	(3)
Planning	234	(1)
Review All Existing Reports	234	(1)
Develop an Inventory of All New Reports	234	(1)
Determine the Tool That Will Be Used To Create Reports	235	(1)
Definition	235	(1)
Coding	235	(1)
Testing	235	(1)
Extensions and Customizations	236	(5)
Planning	237	(2)
Definition	239	(1)
Coding	240	(1)
Testing	240	(1)
19 Training	241	(1)
Project-Team Training	241	(4)
Who Will Attend Training?	242	(1)
Which Subjects Will Be Included?	243	(1)
Who Will Provide the Training?	243	(1)
What Type of Training Will Be Used?	243	(2)
Where Will the Class Be Held?	245	(1)
End User Training	245	(5)
Initial Training	245	(2)
Who Will Attend Training?	247	(1)
What Subjects Will Be Included?	247	(1)
Will the Company Use Vendor-Provided Training?	247	(1)
What Type of Training Will Be Used?	248	(1)
Who Will Provide the Training?	248	(1)
Where Will the Class Be Held?	249	(1)
What Materials Are Required, and Who Will Provide Them?	249	(1)
How Will Training Be Evaluated?	250	(1)
Ongoing Training	250	(3)
20 The Challenges of Multisite Implementation	253	(1)
How Much Variation Will Be Allowed?	253	(1)
Will There Be One Project or Many?	254	(1)
Who Is In Charge?	255	(2)
Single-Project Team	256	(1)
Multiple-Project Teams	256	(1)
How Many Instances Will There Be?	257	(1)
Will the Implementation Be Multicountry?	258	(6)
Multiple Languages	258	(1)
Software and Documentation	258	(1)
Training	259	(1)
Help Desk	259	(1)
Local Laws	259	(4)
Section VI: Postimplementation
21 Support	263	(26)
Establishing End User Expectations	264	(1)
Step 1: Create a Steering Committee	264	(1)
One or More Committees?	265	(1)
Charters and Agendas	265	(1)
Step 2: Establish Service-Level Agreements	265	(2)
Step 3: Implement a Mechanism for Capturing and Reporting Performance	267	(2)
Step 4: Communicate Performance Metrics	269	(2)
Determining Who Will Provide Support	271	(5)
First-Line Response to Problems and Questions	272	(1)
Advantages	272	(1)
Disadvantages	273	(1)
Second-Line Response to Problems and Questions	274	(1)
Evaluation and Application of Vendor Patches and Upgrades	274	(1)
Modifications to Interfaces and Other Company-Specific Customizations	274	(1)
Upgrades to User Interfaces and Other Nonapplication-Specific Components	275	(1)
The Legacy System Dilemma	276	(2)
Reference	278	(1)
22 The Future	279	(1)
The Postmortem	279	(1)
Brainstorming	280	(1)
Sticky Notes	280	(1)
The Control Plan	280	(3)
Legacy System Decommissioning	283	(1)
Acquisitions and Divestitures	283
Section VII: Appendices
Appendix A List of Acronyms	289	(4)
Appendix B The Project Charter	293	(6)
Appendix C Suggested Reading	299	(2)
Index	301