When a system implement fails to deliver the expected results
the fall-out can be catastrophic for both lender and software
provider. What are the likely causes and who is to blame, asks
Brian Rogerson
Go deeper with GlobalData
It is a regrettable fact that the history of automotive finance
software implementations is littered with disappointments and
unintended consequences. There is no doubt that systems that are
incomplete, developed by people without industry knowledge,
unproven in the marketplace and implemented by staff lacking change
management expertise will fail to reach their objectives.
CHP’s Andrew
Denton says: “The project must be run as a partnership between
supplier and customer, with the emphasis on business change and
benefits delivery. Many companies assume that systems
implementations are something your supplier can do ‘to you’, which
is a recipe for disaster – business engagement is vital.”
Martin
Drake of DRIVE
comments: “The number one cause of failure is unproven software.
The functional requirements of vehicle leasing are more similar to
city finance systems than to dealer sales and, as such, require
‘man years’ rather than ‘man months’ of testing to make them
robust.”
Mismanaging of expectations
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By GlobalDataManaging expectations correctly is a key factor for a successful
implement. Tony Langford of NetSol
Technologies explains: “The rationale behind the system change has
to be clearly laid out and the vision, aims and objectives (why are
we doing this and what do we want to achieve) agreed and
communicated to all within the business and vendor team.
“In the absence of clear agreed objectives, individual
expectations proliferate. The judgement as to whether a project has
delivered or not then becomes a matter of conjecture and possible
dispute. To ensure an implementation success, clients must agree
and communicate the required objectives.
hey must use an agreed process to measure progress and the final
outcomes, communicate progress along the way and, most importantly,
ensure that they and their vendor are prepared to go the ‘extra
mile’ to get the success both parties want to achieve.”
John
Harman of Oyster
Bay adds: “It is important to build up an effective
communication strategy with the client. If possible design
communications for end users that are relevant to them. Involve
them directly when possible – invite feedback and opinions. Most
importantly, when a key/major system update is ready to be applied,
always ensure that the client’s project manager is comfortable with
the changes, is fully informed and understands the business
requirement and implications that update has on the immediate
business function – possible disruption to services due to restart
of applications, PC, server, etc.”
Strickland-Clark blames undue optimism. “Software provides,” he
says, “are like builders – born optimists. They want to succeed and
believe they will. Combine this with a reluctance to say ‘no’ to
any key requirement during a competitive sales situation and many
vendors over commit themselves. Customers should not always dismiss
the vendor that says ‘it cannot be done in the timescales’ – they
may be the more reliable provider.”
Motor Finance Issue: 41 – March 08
Published for the web: March 26 08 16:3
Last Updated: March 27 08 12:50
