Overselling and under-delivering

Is “overselling and under-delivering” becoming a norm for the IT software industry today? This question would have diametrically divergent views depending on which side of the table you are sitting. Whereas clients would seem to nod their head in unison, but ask any IT software firm they would deny it vehemently. Being a part of the IT industry for quite some time now and however skeptical I may be of the clients, I have some reasons to partially agree with the strong statement made above. However, I believe much of the malaise can be attributed to the internal dynamics of the IT software industry.
The industry is replete with Death March projects. Some industry statistics suggest that almost 60-70 percent of software projects experience cost and time slippages. This is making fixed costs projects more popular with the clients as they are no longer willing to bear the brunt of the software vendor’s overzealous marketing and sales tactics. Time and material projects are a rarity today.

Intangible deliverables
The very name ‘software’ suggests that much of the attributes of the deliverables of the software industry is intangible and often difficult to quantify with numbers. Robustness, scalable, flexible are terms which are used with penchant in this industry. Often when an RFP (Request for Proposal) is prepared by the customer these loosely defined terms are frequently used to play safe, thinking they can be later used to squeeze the software vendors, but they don’t realize that they often backfire resulting in the bleeding project costs on both sides. The requirements of an IT solution is not adequately covered and open ended requirements are preferred thinking that these can be used to cover up any changes in requirements later on.
Project slippage
The IT software market is increasingly becoming commoditized. On the other hand, appreciating Indian rupee is putting pressure on the margins. This is often resulting in myopic attitudes by the sales and marketing team to bag new clients and customers. Often there is very little communication between the sales team and the delivery team and any threatening objections to the proposal by the delivery team is quelled at the very onset. Thereafter, once the project has been bagged, all responsibility falls on the delivery team to meet project deadlines and delivery costs. The sales team basks in glory and the delivery team sweats. If there is a slippage in delivery the whole blame falls on the project delivery team and little is done to bring the sales team under scanner for their shoddy estimates of the project delivery costs. Another important factor which contributes to the project slippage is our resistance to say ‘no’ to our clients and also to raise our voice against unreasonable demands made by them.
Lack of documentation
I have rarely seen a project which has very detailed documentation of the project’s various phases. We don’t like to do documentation, as cutting time on documentation can save costs. That is probably reflected in the documents we prepare as a part of our deliverable and also as a part of the internal monitoring process. Often client requirements are poorly captured during the initial study of any IT project. This makes any project extremely vulnerable during the later part of the project lifecycle when clients start getting a feel of the IT solution.
Poor quality of delivery
There are other reasons for poor quality of delivery by software companies. The quality of consultants is much to be blamed for this. Most IT companies are increasingly recruiting freshers to reduce costs and train them on projects. Thus consultants are being trained on clients’ expenses. However unethical it might seem but it is the hard reality. Inadequate scrutiny during the selection process often results in unscrupulous candidates being selected. Such is the pressure of recruitment that previously rejected candidates are offered jobs later on to meet the requirements of a depleting workforce.
Some of the projects are taken by companies just to gain a foothold in a particular domain or geographical area. In such projects profit is not the main object but without such profits in place, the delivery quality suffers subsequently.
Increasing offshore components of projects is also one of the reasons of why client requirements are not captured adequately. Regular client and end-user interaction is an important component in client satisfaction.

Anand Chatterjee explores the reasons why it so difficult to manage client expectations in the software services industry
For the complete article please follow the link:
http://www.expresscomputeronline.com/20071112/technologylife05.shtml
© Copyright 2001: Indian Express Newspapers (Mumbai) Limited (Mumbai, India).

Who is the best consultant ?

It is a very important day for Mr CIO of M/s Cyprimo Cosulting Inc. Senior Team from a top ERP consulting team is going to make a presentation to the Board. Mr CIO had already forwarded the Board members’ expectations to the consulting firm.

During the presentation, the firm highlighted all their capabilities, competencies, experience and band width of ERP implementation. Some successful implementation stories were also narrated alongwith the video clippings of CIO,CEO & CFO’s of various organization sharing their experience and benefits of ERP implementation in their organization.

The entire board room is filled with lots of excitement and satisfaction. There is a sense of great relief and containment on the face of all key stake holders with a hope that if this firm is appointed, all their pain points will get resolved on a ‘press of a button’. Now, the consultants have already done a positive sales peach in the organization. On realization of the same, the head of the consulting team proposed to the board that they would like to take the board members through the implementation plan. All the board members without even realizing what has hit them, overwhelmed board members instantaneously agreed to go through the plan.

In the plan presentation, the consultant has listed out the detailed steps for implementation. Wherein, there is mention of broadly four steps :-
·Preparation
· Process mapping
· Configuration
· Go_live

Then they started emphasizing on the critical success factors. The stated pre-conditions to any successful implementation are :-
· Governance model with detailed role and responsibilities of Project Sponsor, Program Manager, Project Manager etc.
· Project execution structure and involvement of resources like Process Owner, Module lead, Module team etc.
· Project implementation structure and roles and responsibilities of Super user, Training manager, end user etc.
Looking at the requirement and involvement of the various resources at the various levels of the organization CEO responded by saying “ Who will then run the business? If, this is the level of involvement of people in the organization then what will be the role of consultant in this entire process of implementation.”
The head of consultant replied by saying “ Unless you involve your entire organization then how will you bring about change management across the landscape of the organization. The value that we will bring on board is only about the implementation experience and ERP knowledge expertise. But the you and your people know your business best and you have to take the ownership of getting it right at the time implementation.”

Mr CIO added by saying “ But you are also bring the industry specific best practices also I suppose “. The head of consulting explained that every organization believe that their business practice and process is the best and that is preciously the reason why the business is thriving. He further, mentioned that there is no standard industry specific template or formula per say that can be applied across various enterprise in the industry space to get a ‘one size- fit- all’ solutions.Mr CIO asked the head of consultant “Who is the best consultant”? He immediately replied “You and your team, sir. Since, you know your own business best. That knowledge repository cannot be replicated by any consulting house in this world. With our multi project bandwidth we can only do benchmarking and validation and provide some input for some functional correction.”

Mr CEO asked “ What for we are engaging you”? The consultant head replied “ It’s only for our knowledge in the ERP product functionality and for our bandwidth in such implementation across various industry vertical. In fact we are enabling you to unleash and realize potential value of your business better and bigger”………….

For more information please contact us at cyprimo@gmail.com