Getting your business processes online is not an easy job! According to
Gartner Group, a renowned research firm, a full 75 percent of all e-business
projects fail due to poor planning and unrealistic expectations of new
technology. The productivity gains and cost savings promised by e-business
solutions are often lost not because of the technology itself but because of
improper management of their implementation. In most of the cases, when a
massive e-business solution installation goes wrong, the management of the
business is to blame. Failure to understand the scale of the project,
oversimplification of the project, inappropriate expectations and lack of
resource commitment are few of the mistakes made by management that
debilitate the implementation and use of the systems.
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Pitfalls of E-business solutions installation
process
A large distribution company has decided to use a new online supply chain
management solution. The people those who were supposed to use the system
were quite skeptic about the ability of the system, as they did not have
enough knowledge and had very little or no training in using a similar
system. As a result, it took over a year for the company to bring the
solution to its full operation. Productivity suffered severely. The final
implementation cost came out to be several times more than initial budget. A
large number of companies are reporting to face similar difficulties with
the implementation of their e-business solutions.
The problems that occur while a company tries to implement e-business
solutions, most likely, include:
- Senior managers do not spend enough time and efforts to learn and
understand the solutions. As a result, they have no idea how their
workers will adapt to this new solution; and fail to set forth
quantifiable objectives for them in terms of efficiency and
productivity.
- The end users do not receive required training. As a result,
treat the new solution as an added burden rather than a tool to increase
efficiency and productivity.
- In many cases, IT infrastructure is not up-to-date enough and
lacks power to support the new solution.
- Due to inadequate understanding by the management of the e-business
solutions that they plan to adopt, often, the time and money
allocated to the project are far less than required. Often the
advanced Internet based e-business solutions require to be integrated
with portion of old systems that the company is presently using, which
in turn, sometimes generates software and system incompatibility.
How to Avoid Pitfalls
E-business solutions are sophisticated systems that encompass significant
areas of the company and its relationship with customers. That s why
implementation of these projects should be carried out according to detailed
plans.
Preparation
Create a well developed scope. In creating the scope involve all
end-users of the solution, not only the technical and business model
experts. Get answers to the questions like:
- What is the single most important goal that the company is planning
to reach thanks to this solution?
- What critical problems the solution is meant to solve?
- Are the time and money spent justifies its implementation?
- What are the implementation milestones?
- How you will know that you have reached those milestones?
- Once you got all the relevant people of the company involved in the
process, choose an implementation taskforce of experts from all required
sections. This team should be responsible for developing the
implementation plan. According to this plan assign resources and
deadlines. Upon completion of each stage of implementation get senior
management involved in order to review the progress.
Education and Training
Education should cover the why side of the solution and training the how
side.
- Identify the people that required getting trained and educated.
- Define objectives
- Define training and education criteria and select syllabus
- Set the evaluation method
- Conduct the actual learning process
- Assess their progress
Implementation
Implementation of the solution should take place according to the strict
predefined stages.
Upon completion of each stage of implementation get senior management
involved in reviewing progress. Conduct reality check!
- How does the solution meet your expectations so far?
- Is it doing what it s supposed to do?
- Do you need to revise any of your priorities?
Once the implementation is over, set up a thorough post implementation
meeting with the taskforce and the relevant end-users. The important thing
here is to identify if everybody involved with the project is satisfied with
the result or not.
In order to successfully implement e-business solutions, it is very
important that you fully understand the technologies behind it. If require
hire a consultant and work closely with her. In the long run, this might
save you substantial time and money.
Here are other things to remember:
1. E-business solutions are mere tools. Don t expect them to radically
change everything that you learnt about business processes.
2. E-business solution implementations like any other project require
strict step by step project management.
3. Before considering an e-business solution, make sure that there is a
sound business need to get it. E-marketplace, Private exchange, Business
portal are few of the e-business solutions that help you attracting new
customers and markets. These solutions also allow streamlining many of the
vital business processes. In your e-business strategy these solutions should
be at the top of the list.
4. Keep track of the new technologies and keep an eye to your competitors
e-business strategies. E-business is an extremely fast moving segment; you
should be ready for changes and embrace them whenever it s necessary.
About the Author
Nowshade Kabir is the founder, primary developer and present CEO of
Rusbiz.com. A Ph. D. in Information Technology, he has wide experience in
Business Consulting, International Trade and Web Marketing. Rusbiz is a
Global B2B Emarketplace with solutions to start and run online business. You
can contact him at mailto:nowshade[at]rusbiz.com, http://ezine.rusbiz.com/archivenews.html?nl_oid=43
September 20, 2004
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