Maximise Your Investments – be sure you know what you’ve got
 Paul Mason, CEO of retail systems experts PMC looks at how retailers can maximise their IT investment by understanding the systems they have and the functionality they offer.
When you have a new software package you comb through its capabilities in detail either through the sales process to check the package meets your list of requirements, or during the implementation process to see how it works. Whichever route you take, you get to know its capabilities well.
If you don’t have specific business needs that subsequently drive you to examine the package regularly the world will change. Your supplier will inevitably update or move the package on, your knowledge of what you’ve bought or what your licence entitles you to will get out of date. Whatever the reason you lose track. Then you could easily miss existing or enhanced functionality or buy a widget from someone else that is already available within the existing package.
The answer is engage with your supplier
All suppliers have road maps – their plans for what they’re going to invest in their product. Does their road map fit with your IT strategy? Is the latest upgrade one that you’re entitled to under your software support and maintenance agreements? Do you know what upgrades are on the way? If you don’t know the answers then you’re probably not engaged with your supplier and in today’s economy that’s a mistake.
It all depends on your engagement with your supplier. Do you go to their user groups? Are you involved with their product team? How close is the relationship? You have to forge that relationship. Many retailers don’t forge close enough relationships with their strategic suppliers. One result is they don’t know what they could implement without buying further licences or a new system form another supplier.
Of course, some suppliers give equal weight to supporting users and new business, others drive solely towards selling new licences. A licence-driven business could have a focus on getting new customers not necessarily engaging with its existing customers. The trick is to find those suppliers that want to work with you and then ensure that you work with them.
Benefits realised or not
If you have recently implemented a new software package have you gone back to check the benefits you invested in have been realised?
Unfortunately, few retailers carry out a meaningful post-implementation benefits review. And that’s missing a trick. Naturally, there will be a benefits case attached to the investment request to the board however it’s questionable how many retailers revisit the benefits 6 months after the investment to check they were realised.
The questions are simple, what was the benefits case and did we achieve those benefits? Then you need to go a little deeper - have we got more sales, did we lower costs, could we take out people, have our margins improved, has our availability gone up?
Whatever the original components of the business case were I’ve rarely seen an effective review. The truth is that many businesses forget to do it and some don’t do it at all.
Whatever the state of the economy it’s necessary to commit to review delivered benefits. With that discipline you make better decisions. You’re that much clearer there is a business case. So when cash is rationed in hard times you put your money where you get the best return – not to the director that shouts the loudest.
For further information please contact enquiries@paulmasonconsulting.co.uk |
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The latest step in Carpetright’s development is creating a new e-commerce platform to drive revenue, attract new customers and reinforce the Carpetright and Sleepright brands. The project, which includes transactional web sites for both Carpetright and Sleepright started in January and will complete by the end of 2009.
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