Size of your organization Skills, experience, workload of resources Budget Control Timeline Security concerns Supply chain and regulatory issues Number of expected annual transactions

1. The Replacement System –
Why, How, When, and Who
July 10, 2012

2. Housekeeping
Phones are muted
Use the question block for
questions
Copy of presentation
available upon request

3. About Your Presenter
• Sr. VP KeyedIn Solutions Consulting Group
– Helping companies align their business and technology
– Focus on people, process, and then the technology
– Subject matter expert on business process management
– On-going research into next generation of technology for
enterprise systems
• 25 years experience in enterprise systems
– USAF Research Project (1985)
– Founder of enterprise quality software company (1988)
• Trusted advisor to global organizations, government
agencies, and professional groups
http://www.linkedin.com/in/johncachat

4. Thought for the Day
It is better to know some
of the questions than all of
the answers
4

5. Today’s Discussion
• Key Considerations
• Replacement Options
• Deployment Options

6. Key Considerations
• Size of your organization
• Skills, experience, workload of resources
• Budget
• Control
• Timeline
• Security concerns
• Supply chain and regulatory issues
• Number of expected annual transactions
6

7. So You Decide To Get A New System…
It is important to ask the right question
Common Better
What is the best What system is cost effective and
system? allows us to meet our business
needs?
What vendor scored What vendor took the time to
highest on the RFI? understand our needs?
What vendor is the What vendor provided a realistic
lowest cost? and comprehensive quote?
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8. Replacement Options
• Internal development
• Contracting an Independent Software Vendor
(ISV)
• One vendor
• Best of breed (multiple vendors)
• Open source applications
8

9. Internal Development
Pros Cons
System is custom built – you get exactly Involves a great deal of design time.
what you want Mistake early on are very hard to fix
later.
No annual maintenance costs, no annual
support costs to a vendor No source of resources that already
know the system
Complete control of upgrades and
enhancements Internal developers may not be best
resources for new product
Internal developers more accountable development.
than external vendors
Testing is 100% on you.
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10. Contracting an Independent Software Vendor (ISV)
Pros Cons
Typically cheaper and faster than Involves a great deal of design time. Mistake
internal development early on are very hard to fix later.
Complete control of upgrades and No source of resources that already know the
enhancements system
ISV business sustainability, especially if
knowledge transfer and documentation is
poor.
Testing is 95% on you.
Communication delays & hidden costs
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11. One Vendor
Pros Cons
Assumption is a mature and fully Out of the box may not fit
tested application
Support costs @ about 20% per year
There is a source of resources that
already know the system Customizations are expensive and
take you out of standard upgrade
Other organizations are involved in path
testing and resolution of issues
Support calls go to a single company
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12. Best Of Breed (Multiple Vendors)
Pros Cons
Each application is better than the Cost, maybe
generic functionality in a single
enterprise applications Integration, integration, integration
Better fit should mean less business Multiple contracts, support agreements
process change, faster deployment
Finger pointing on problem resolution,
especially in integration and reporting
areas
12

13. Open Source Applications
Pros Cons
Large development community that Many OSS applications are not fully
has resources that can be hired mature / tested
Ability to customize to meet end user Customization may lead to
needs unexpected errors, especially if
coding and documentation is poor
Less changes to internal business
process Possible security concerns
Possible licensing (legal) concerns
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14. Deployment Options
Option Comments
On-premise – traditional license Significant amount of internal IT
support and involvement
Software as a Service (SaaS) Rapid deployment
Lower cost of ownership
No shelf ware – pay for software that
is used
Buy license and have it hosted
14

15. Things to Remember….
• There is no simple or
correct answer
• Build, buy, or rent options
• General rule of thumb - rent
a proven solution from a
proven supplier
15

16. About KeyedIn Consulting Group
Experts providing solutions to specific problems
– Enterprise Software Selection
– Project Rescue
– Project Management & PMO Managed Services
– People and Process Alignment
– Business and IT Alignment
16

17. Follow KeyedIn
Corporate Website: www.keyedin.com
www.twitter.com/keyedinsolution
www.linkedin.com/company/2434133?trk=tyah
17

18. Free Whitepapers
Download
@
www.keyedin.com
18

19. Upcoming Webinars
7/12/12 How to Successfully Engage Software Vendors & Their Software
7/17/12 Business Processes: Can’t Live With ‘Em, Can’t Live Without ‘Em
7/19/12 Support for the New System: Go Live Is Just The Beginning
7/24/12 Selecting Consultants: Just Like A Marriage–For Better Or For Worse
7/27/12 Enterprise System Implementation Strategies and Phases
7/31/12 Project Teams: People Issues, Roles and Responsibilities
Register at
www.keyedin.com
19

20. Questions & Answers
Q A &
Copy of Presentation Future Webinars
Contact:
Shelly Bird Visit:
sbird@keyedin.com www.keyedin.com
952-835-1041 ext.163