Information technology’s latest W.Y.S.I.W.Y.G.

We have all seen manufacturing companies introduce "economy-sized" products or "budget packs" to address a unique customer segment. We have also seen this trend catch on with the cellular network and Internet service providers with the introduction of "prepaid cards." In fact, majority of the cellular phone population is on "prepaid." The whole notion is that it is hassle-free and easy-to-use, and you buy what you need now. Black is black; white is white; what you see IS what you get.

In the local market, IT customers face the same needs. By definition, our large enterprises are equated with the medium-sized companies in the United States; IT expenditures are not directly proportionate to a company’s revenue. For the Asian market, especially the Philippines, the reality is we need a "budget-sized" solution. The economic downturn has put severe pressure on operating costs and has highlighted the need to increase productivity and reduce time to market. Additionally, while the Internet has helped reduce the barriers to trade, it has, at the same time, increased competition. While the need to invest in technology is realized by companies, an IDC study stated that technology for technology’s sake is no longer relevant – IT investment is related to the business significance and appropriateness. With the continued economic challenges, software companies can no longer turn a blind eye. And for us, as the local software partners, on behalf of our customers, we are relieved to see that the trend has finally caught on.

So, if the software giants have now released the "budget packs," what’s the catch? Do we compromise functionality for price? Do we end up with lower quality software? Maybe we need to throw it away in a year? For one software giant, apparently, there is no catch. Oracle Corp. recently launched its Oracle E-Business Suite Special Edition, coined "EBS-SE." It uses the same Oracle software at an affordable price. It comes pre-seeded with business flows, which reduce implementation time and predefine consulting work, hence, low risk and no surprises. You install in an hour and using the pre-seeded business flows, you can run your business on the software almost immediately. So how do you evaluate whether the "budget pack" is right for you? We remind you of the Four Cs.

Content. Know what you need against what you want. Keep a wishlist for the future but determine what is most critical to your business now. For some, it is getting their financial statements on time; for others, it is visibility of stock inventory as this ties a large portion of their cash, especially for small and medium entrepreneurs. If you want the "budget pack," be ready to implement what is pre-seeded – killing two birds with one stone, you can implement a solution that formalizes your processes and use best business practices.

Cost. For these companies, price is a very important factor. While "budget packs" mean cheaper price points, they do not want to compromise quality. It should not be a more inferior product or even a different product. Again, it must be value for your money. Determine what is included, what options there are – pricing must be kept simple.

Commitment. A local partner will know the local business environment; it naturally follows that we understand you better. The level of commitment by your local partner is still very important – although you are purchasing the "budget pack," you will still need assistance and support. The involvement of the local partner not only lowers the overall cost but also increases the level of accountability before, during and after the project implementation. The other side of the coin is your commitment. It is critical to the success of the project that you communicate and set the expectation level of your team. They will have their own "wishlists," which must be acknowledged and maintained as the company’s "wants," not "needs."

Chemistry. The people factor. Establishing trust and openness between your local partner and your company is important. Your software partner must recommend what is right for your organization – what you need now. During implementation, this is very critical. Managing a fixed scope implementation over a fixed timetable under a tight budget will require joint efforts between your team and your local partner. Setting expectations and keeping open communication channels is a step in the right direction. Good chemistry will go a long way, especially with "budget packs."

The software Special Edition was designed to fit a certain customer profile, catering to their current needs (but not limiting them to realize tomorrow’s wants). While giant software companies have realized the importance to meet the needs of these organizations, we must also understand that these were intended to be affordable and sensible investments for the small to medium players, not a budget squeeze for the large organizations. At the end of the day, you must ultimately decide how to best utilize your investment – no catch, no tricks, no smoke and mirrors, what you see is what you get… w.y.s.i.w.y.g.

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Abigail K. Yap is CEO of Active Business Solutions Inc. or /a/b/s/ (www.ActiveBusiness.com), a solutions provider belonging to the Yapster e-Conglomerate group of companies. You may contact her via e-mail at [email protected].