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"RPE is one of the only consulting companies to offer strategic, functional and technical expertise focused exclusively on the retail industry. Our global technology skills, capacity to deliver results and collaborative approach are key assets that help clients achieve success. By identifying critical issues and implementing innovative solutions, clients generate revenue, reduce costs and access the right information at the right time. "
Source : RPE
Software Implementations 'Out-of-the-box' or Intelligent Modification
Software Implementations is also known as :
Implementation Process,
Implementation Proposal,
Integrated Software Package,
Software Architecture,
Software Document Planning,
Software Document Process,
Software Evaluation Integration,
Software Evaluation Solution,
Software Implementation Methodologies,
Software Implementations,
Software Integration,
Software Integration Strategies,
Software Method,
Software Model Analysis,
Software Phase,
Software Systems
What do all retailers have in common? The answer is simple. They strive to provide the right product at the right
time to the right location. That's where it ends. The biggest challenge retail software vendors face is how to
provide an all-inclusive "out-of-the-box" solution that satisfies the unique requirements for a wide-spectrum of
retail organizations.
The challenge is even greater for the retailer. What package will best suit the needs of the organization right
off the shelf? The day of the custom "homegrown" merchandise system has come and gone, and this raises
the primary question every retail IT executive faces when making package selection decisions. Do I change my
business processes to fit the software solution, or change the software solution to fit my business processes?
"Out-of-the-Box" Software Implementations
Software vendors are very adamant about discouraging their customers from modifying proprietary base code.
The risks to the retailer are spelled out clearly in every software contract. Do it and you relinquish your product
support and jeopardize the ability to install future version releases. Today's retail software packages are built
around the ever changing best practices of the retail organization. They are designed to be a cost effective
means for retailers to implement and apply these best practices with a relatively quick ROI and low cost of
ownership.
The benefits of implementing a retail software package without modifying a strand of code are evident.
The overall cost of ownership is far less than the incremental/ongoing costs involved in coding, testing,
documenting and training users on a modified version of the vendor package. In addition, implementing
a vendor's software package without modification eliminates the risk of losing vendor product support -
specifically bug fixes/patches and new functionality releases. Software vendors typically release new versions
of their software for a couple reasons:
- To apply major bug fixes/patches found by their customers
- To address technological changes including data base platform upgrades and performance needs
- To apply constantly changing business requirements and functional gaps identified through the "best
practices" approach ' the best R&D is the client
The number one fear that any IT department who has modified a software vendor's base code is, "How do we
handle patches for bug fixes and version releases for enhanced functionality?" This fear alone usually is enough
to end any thoughts of going down the modification road.
The greatest challenge a retailer faces when implementing an "out-of-the-box" solution is change management.
The expectation is that the business has to be rebuilt around the functional limitations of the software package.
Business process re-design is an unavoidable requirement when implementing a new software solution. The
concept of change almost always creates push back from the user community with thoughts of changing how
they have to do their job, not to mention the fear that the new system may altogether eliminate their job. The
change management aspect of the implementation can be addressed through formal business process review
where "as is" and "to be" processes are defined, documented, and implemented. With time, the fear of change
shifts from denial to acceptance as the efficiencies of the new software and business processes are realized.
Intelligently Modi?ed Software Implementations
The vendor package selection process should determine which software package has the least amount of
functional gaps. Functionality gaps are inevitable. In some cases, an "out-of-the-box" software solution is just
not a viable solution for a retailer's business and the decision to build an "in-house" solution results from this.
Sometimes these critical functional gaps are found after the software package selection process and the
retailer has two options:
- Postpone the implementation process, or
- modify the code to satisfy the business requirements.
Modification to a software vendor's package is a viable solution only when the retailer has determined that the
benefits outweigh the costs. In some cases, a single critical functional gap identified in the software can drive
this decision. In other cases, depending on the severity, the gap in functionality identified by the retailer finds its
way into future software version releases. The question is whether the retailer is patient enough, or confident
enough that this will happen.
Postponing the implementation process is a costly decision, and modification becomes a necessary evil.
Vendor contracts have been signed, hardware purchased, the consultants are onsite and management has an
expectation for IT to deliver. The result - proceed with modification to satisfy the business requirements. As long
as the retailer is diligent in deciding what should be modified based on the severity of the gap, there are realized
benefits to modification. The benefits to intelligently modifying an "out-of-the-box" solution include:
- Satisfying the end user requirements
- Eliminating any critical functional business gaps not satisfied by the vendor's software solution that may
- have an impact on the retailers competitive advantage and ultimately their bottom line
- Eliminating the fear of change management, specifically business process re-design
Some would challenge that the elimination of change management is actually a weakness. Why? Often new
software systems are selected and implemented to streamline business processes. Retailers can argue it either
way in this option and it depends on the overall cost-benefit analysis involved. Though the option to modify is
more costly, and the risks involved with bug fixes/patches and new version releases are greater, the cost and
risks can be justified by the retailer's ability to address critical functional gaps that can make or break their
bottom line.
Which Decision is Best?
So which is better? It's a case-by-case decision. If the retailer's business model is not complicated and has
the flexibility to mold its business around the functionality of the software package, then "out-of-the-box" is the
right decision (Option 1 in Illustration 1). In addition, if the retailers IT budget is small, then the costs involved
in staffing the in-house resources required to support a modified package may not be feasible. Leave it to the
software vendor to support the software.
Four Implementation options
Larger retailers with more complicate business practices tend to be good contenders for modification (Option
2 in Illustration 1). They tend to have the capital resources and IT head count necessary to manage a modified
software package. Typically, these retailers manage their business in such a unique way that modification is the
only option to run their business on the new software solution.
In some instances, the retailer may have enough influence on the software vendor to incorporate the functional
gaps into the base code without the need for modification. Yet, this is not always the case and when the
retailer's competitive advantage is impacted, modification is essential.
Often the first step in the process is to conduct a more detailed cost-benefit analysis to assess the
organizational impact. Once it is determined that the vendor software requires modification, the retailer
should be diligent in conducting discovery sessions to identify all functional gaps, distinguish the necessary
modifications from the "nice to haves", prioritize them and develop a strategic plan to implement.
About RPE
RPE is a leading consulting services provider exclusively focused on the challenging needs of the retail
industry. RPE provides strategic consulting services, systems management, implementation, integration,
modification and system upgrades for retailers worldwide. With a time-tested and proven record in retail,
RPE delivers services on time and on budget. Areas of expertise: Manhattan Associates' Integrated Planning
Solutions&8482;, Integrated Logistics Solutions&8482; and Warehouse Management solution; Microsoft RMS; Island
Pacific; and the JDA® ASP, PMM® and MMS® applications, E3®, Arthur® and Intactix®. For more information,
visit http://www.rpesolutions.com.