I was CFO at a pharmaceutical firm a year after the acquisition. One thing that had not worked well during the company’s first year was the computer system.

 

A computer system did not come with the acquisition.  The previous CFO selected good hardware, and IBM AS400 minicomputer system.  The problem was with the software.  The software was fine for the fundamental accounting operations.  However, it was a nightmare for the sales and operations areas of the business.  People developed their own manual ways of getting things done.  The computer terminals were little more than bulky paperweights on many desks.

 

Herein was a fundamental problem I have seen several times in selecting a computer system.  The focus is on the financial side of the program.  The rest is an afterthought.

 

The lesson is to let customers and operations rule. 

 

Usually the needs in finance aren’t terribly particular.  Most computer programs will do a respectable job with the general ledger, for example.

 

The sales and operations side is a whole different situation.  Most companies will have their own special ways of processing customer orders or different ways that they produce their products.  Usually there is some customization that will be needed in the software program.  You don’t want to be modifying your customer service or manufacturing process to fit the computer system.

 

The tail should not wag the dog.  Finance should not wag sales or operations.  Yet that is just what can happen when a computer system is selected.

 

Fortunately, I was able to find a solution.  There was an add on available to the program that we had that converted the program to fit a batch manufacturing process.   We were able to do some custom work to better fit the sales area.  We had a bonfire of the manual systems and the computer program eventually got accepted throughout the company, even in the laboratory and the shop floor.

 

Hopefully you read this before you select your next computer system.  Put the primary focus on the needs of sales and operations.  Satisfy them and you are a long way towards having a successful implementation.