Every enterprise application comes with a tag line of customization,
integration and configuration. What does it mean for a partner and
what does mean for a customer? Most of the time customer includes
their wish list for customization. It seems like a Mirage when the
customization required starts contrasting with features and the
product road map.
The product pitch and product with
customization are totally two different and individual entities.
Business partners normally pitch the product USP’s V/s price for
most of the customers whereas customers expect software applications
to provide results in various parameters but the reality is
otherwise. Business partners / principal companies try various
permutation and combination with the existing features of the product
to satisfy the customers requirement, while some of the requirements
still do not fall in line after this effort and the customer’s tends
to assume that the customization would put his concerns to rest which
does not happen eventually. Do partners have the road map
clarity? To begin with, the software application comes
with Product and Customization Road Map. The product road map is
for features and upgradations which principal companies decide and
they plan accordingly for the future developments. Customization
road map allows partners or third party developers to create add-ons
for the product within the available frame work which is actually a
pre-defined option by the principal company. This frame work usually
creates quiet a bit of ambiguity as far as partner is
concerned. Is customization a tool to keep the competing
products at bay by partners/principals? Application
Customization is seen as the next big thing in the market place to
generate service revenue from packaged applications. Even business
partners look at this opportunity as a way to move up in the SI
ladder. But the same does not hold true for most of the available
packaged application since partners are sometimes ignorant about the
principal’s product roadmap.
To add to the complexity, the
word “customization” would have been used at various stages during
the sales cycle and customers do register it but they get back to the
partner/principals when customer places LOI or PO as part of
customization would become a requirement when implementation starts.
“Is customization an additional functionality, feature, new
report or a combination of all ? “ Let’s have an
example: Business partner for an ERP application pitches the product
based on the features, better ROI and other benefits. Customers finds
it credible at that point of time. Before buying the application
customer expects the vendor to customize the application in the SCM
Module. SCM is a vast area which ranges from internal management to
material management and also has the scope of further enhancement. Is
the application geared up to handle it ? Has the partner understood
the road map of his principal vendor? Any lapse in the either can
result in the customer being dissatisfied with the application
provided, which in turn can lead him to discards the application mid
way.
At times principals are also responsible for this
dissatisfaction as they don’t disclose or make the product roadmap
clear to the business partners, whereas the same business partner had
to hire or maintain the employees who are certified by the same
principal for technical support or implementation. Is there
a way out? Business Partners need to be aware of some
aspects of the principal’s customer polling data to be in sync with
target verticals. Principals should also try and encourage sharing of
this relevant information which would equip the Business partner to
handle queries better. Does it happen? The
principal’s certified employee with partner can not guarantee
his/her ability to handle every situation. Principals should not just
provide functional training but also need to update the manpower with
the technological advancements. What
next? Addressing pain areas - a major area of concern
depending on the application being pitched. Few of the applications
are part of compliance strategy as they depend on their customer viz
the same CAD tools are bought to maintain the
compatibility.
While utility tools like backup, mailing
solutions, program management application requires partners to address
the current pain areas and to take care of the potential pain areas
but this usually requires domain knowledge where principals should
provide inputs to the put forth the value
proposition. ROI(Return on Investment): A
mathematical tool to show how customers can gain. The partners had to
be conversant how it’s calculated in gist and in reality rather than
sending a spreadsheet along with the proposal which the principal has
prepared. Lets have an example: A Customer buying mailing solution
don’t look at ROI when they go for a change management or Lifecycle
management application they do look at ROI. The ROI is calculated on
perceived and prejudged returns for addressing the pain areas of the
customer where as customer business risk without the product is
ignored. To arrive at it ,customer polling data in that vertical
can provide inputs and exact requirement of customer V/s solution
offered. This ROI can be more factual and live for the
customer.Value Proposition: Document will open a can
of worms if it’s not a standardized document. Principals had to
train the partners on most aspects of this document as this is totally
different from the product USP. What’s sales pitch? What’s the
solution offered / expected ? If these queries do not have clarity
then this would be no different from any other document being
offered.
For an example: A Customer buying Business
intelligence or a CRM application without going for an evaluation of
the proposed application would start its comparison with the
spreadsheets or mail correspondence. Principals/Partner may have done
in-depth study to justify the Value Proposition which addresses the
current and potential pain areas. It is the partner’s responsibility
to train himself accordingly so that he/she is skilled enough to
handle queries in this regard without delay.
A products with
customization provides huge opportunities for business partners to
increase the revenue from the same customers and also lets them build
and develop their domain skill sets.
First : this is agreed that even when we implement
our Finsys ERP software solution, whether by self
directly, or via the channel partners,
Professional Charges include all the Development +
Customisation + substantial Implementation Efforts
) as per Overall Budget : This includes the
Salaries, Conveyance, and other costs of your
staff and Directors over next months of ERP
implementation.
second is the Implementation Methology:
a. MLG shall depute its persons for software
Development, customization, and implementation.
b. Core Team of client will interact with the Core
team of MLG and give its go-ahead to the system
after a approximately 5 session systems study.
c. Thereafter the Client team shall feed the
masters in the software.
d. After that, the software will be made live,
first for the factory dispatches
e. After 15 days of smooth running, a C & F /
Stockists meet may be conducted at Delhi for
training of all users in one seminar kind of
atmosphere.
f. The implementation shall be led by the client
team + MLG Team at Delhi.
g. Both parties appreciate that each visit costs
towards Salary, Conveyance, and Other sundry
charges , and a joint effort shall be made to
complete the project in the least possible time,
as this will be beneficial to both the parties.
h. Hence, Both the parties shall be earnestly
involved in the implementation process. And the
Focus shall be on the Larger needs and long range
targets, and “Work is done”, instead of
“Comma-full-stop” & cosmetic issues.
third is regarding the New Report and MIS
developments
i. This is an unlimited need.
ii. These changes, additions and further changes
is a continuous need in any growing organization.
iii. This needs a high amount of development and
repeated implementation time.
iv. This is free only in case of a high value
AMC
v. And in case of a low value AMC, it will be on
extra basis, as may be decided from time to time.
Guiding price will be Rs. xxxx per manday of
efforts required for that extra work, or changes
as required.
last : Level of Customisation
a. The project price includes customization,
however both the parties agree that it will be
reasonable, and mutually agreed to. The focus
shall be on the purposefulness and vitality of the
output and not on the mere formats or methods of
getting those outputs etc.
b. The word “reasonable” means,
“justified”. Prima Facie, MLG team will do all
requested needs. However, if a particular
“need” can be suitably satisfied, by using
another existing report – that is already a part
of the ERP, and gives almost the same result /
output / desired information, but in a different
format – then , MLG will request, that the core
point is information, and not merely the format of
report .
c. Both parties appreciate that each visit costs
towards Salary, Conveyance, and Other sundry
charges , and a joint effort shall be made to
complete the project in the least possible time,
as this will be beneficial to both the parties.
d. Hence, Both the parties shall be earnestly
involved in the implementation process. And the
Focus shall be on the Larger needs and long range
targets, and “Work is done”, instead of
“Comma-full-stop” & cosmetic issues.
I think we must keep these things in mind +
incorporate them in our ERP agreements , before
the actual implementation starts.
And one last word,
Customer is the boss
so, try to make him understand,
so that there are no issues later on