As we all know, for there are many ERP construction risk. Among them, the company's software selection process and the software vendor's software sales process, this showed different sides of the same process, the entire ERP project one of the most critical link in an ERP project success and ultimately the final target could be achieved, in a great extent, the decision in this session. This article is part of both sides to grasp this point thinking, hoping to enterprises and software vendors are there to benefit.
Introduction - What is the Game
Game is a real social activities a common phenomenon, both from the simple games on the management of complex social and economic decision-making process, there exists a wide variety of game phenomena. The phenomenon of game theory - Game theory is also a modern management science, political science, economics, sociology, military science, a discipline widely used.
More simply, the game theory is a "game theory", a game is defined as: individuals, teams or other organizations, faced with certain environmental conditions, constraints in certain rules, to rely on the information available at the same time or successively, one or more times, allows you to select from their own behavior or strategies selected and implemented, and the corresponding results obtained from their own or return process.
Game is a classic example of "prisoner's dilemma":
A rich man was killed at home, belongings stolen. Police in the case of the detection process, caught the two suspects A and B, and from their residence and found the victim lost the family property. However, they denied murder, arguing that it is first found in rich man was killed, and then something just a little pilfering stolen. So the police will isolate the two were in separate rooms for interrogation. By the prosecutor were talking with each person individually. Prosecutors said, "Because you have solid evidence larceny, so you can be sentenced to imprisonment for one year. But I can and you make a deal. If you confess killing a separate offense, I sentence you to three months imprisonment, but your partner was sentenced to ten years to punishment. If you refuse to confess, were accomplices accused, then you will be sentenced to ten years sentence, he only sentenced to three months imprisonment. But if you both Frankly account, then you must sentenced to 5 years sentence. "
A and B facing a hard choice - confess or deny. If the two do not move, because the evidence is insufficient, the two can only be sentenced to 1 year. If a party trick, and was himself sentenced to three months imprisonment; the other side is a criminal sentenced to 10 years. However, if both bills, and were each sentenced to 5 years. The result: two people scrambling to move up, more ado, each sentenced to 5 years.
Because each party in the choice of strategy are not "conspiracy" (collusion), they just choose their best strategy, regardless of social welfare or any other rival interests. The original strategy beneficial to both sides (both sides denied) and end (sentenced to 1 year sentence) would not occur.
ERP selection and sales in the Game
We know that the selection of ERP enterprise software vendors to provide sales and ERP programs are two aspects of a process. In the process, enterprises and software vendors should be the co-operation, how it will be game?
I believe that, because the process of objective information asymmetry, the game is in the process of a distinctive feature, we look at the process the most typical scenario:
First of all, without loss of generality, we make the following assumptions:
Enterprises to implement ERP, there is a certain demand management is to achieve certain management objectives, and through selection process to choose products and programs.
At the same time, software vendors based on the needs, will provide a product as the core ERP solutions through products and programs to win the business of the project contract.
In addition, to simplify the discussion, here to discuss business cooperation with software vendors for ERP circumstances, for businesses, consulting firms, software vendors and even multi-tripartite cooperation between the situation has not been explained. Know, the three parties discussed bilateral cooperation and cooperation in this great similarity.
Thus, in an ERP project, we often see the following four typical cases, the following table:
Enterprises
Application software vendors targeted, demand shows that the use of targets is not clear, the demand is not fully displayed
Provide the right product settlement 1. Successful system implementation, project implementation, low risk 2. System implementation may be successful, risky project
Provision of incorrect products and solutions 3. Implementation of the system will not be successful, the project risks 4. System will not be successful, the project is very risky
On the table, not only that business "needs specific" and use the "Enterprise demand for the full show," saying the former is the difference between the two companies is just unilaterally demand clear, which is not only a clear business needs, but also including enterprise software vendors to provide the appropriate conditions to allow software vendors with a clear demand, we can see that this is the decisive difference between the existence of the two gap is leading to real success of ERP projects were not a major obstacle (described later). The meaning of the above four cases:
Case 1: Enterprise explicit their own goals, demonstrating the demand, but at the same time, software vendors and very suitable for the target products and solutions to meet the demand, the ultimate success of this system, most likely, the risk is minimal (for discussion convenient implementation of the system here does not take into account the risks and problems, assuming that the correct implementation of the system is certainly a success. following the same assumptions.).
Scenario 2: Business goals are not clear, showing insufficient demand. Nevertheless, the company objectively (that is, judging from the final) provides the right products and programs, the system eventually might succeed, because the system has been compared to the situation before the implementation of an additional uncertainty, so the risk is bigger.
Case 3: The enterprise is targeted to show also very good, but due to a software vendor subjective or objective reasons, such as sales and operating results for the pressure to sign beyond its capacity, not a contract for the company's products, or software vendors consultants to judge wrong, etc., the software vendor's products are not suitable, the program is not correct, the final result of this system can only be a failure.
Case 4: Business is not clear they have to do, what you really need is the software vendor also provided an objective is not the right products and programs, both groggy to what ERP system implementation (again, software vendors may be subjective reasons), the last certainly fail, but failure may be more thorough than the case 3, a greater loss.
Four cases above, after some analysis of the abstract, in fact, we can see, in reality, each belonging to one of the ERP project are:
As a software vendor, will be subjective and objective reasons for both ERP products and programs, which provide different results: the subjective, since the inevitable limitations of software products, driven by the interests of software vendors will face a choice, provide their own products and programs really meet the needs of enterprises; objective is ERP software vendors consultants ability to determine whether the enterprise to provide accurate product and programs.
As an enterprise, as business, investment, time, ideas, understanding, tender, and many other reasons, in practice there will be two situations: one is that corporate management and project leaders is to understand ERP, to understand the value of ERP project and operation of the process, the objectives of the enterprise itself is very clear throughout the process to the software provided sufficient opportunity to understand their needs; the other is no clear business objectives, or have unrealistic goals, on the ERP lack of sufficient knowledge of the software vendors can not provide for the needs full understanding of the opportunity.
In four cases, only Case 1 to achieve the best results - a win-win, that is, selection of successful enterprises, software vendors sales success, while Scenario 2, due to the implementation of the system has brought great risk and uncertainty smaller chance of win-win. The remaining two cases, software vendors might be short-term gains, short-lived to enjoy the sales success of joy, but eventually the project implementation will fail, enterprise software selection fails, the result is both an investment in manpower, time, enthusiasm, etc. shall, after not face a lose-lose.
Reasonable game, win-win
Since the ERP selection process in the presence above the "game", but the game poor projects will lead to the ultimate failure of that win-win for both sides on how the "game" mean? The author believes that the following basic points is that both sides win-win game the key points:
First, both sides should recognize that information asymmetry will be more projects to bring more risks, both sides need to project success from the perspective of the whole into account (not just their own interests), the maximum possible to overcome the selection (sales) the process of information asymmetry.
In the ERP selection process, because the interests of both the difference, especially as projects related to both investment and return, so there is asymmetric information on the project situation.
In the corporate side, customers want to pay the minimum, that minimum human input, the minimum investment, minimum investment of time and so get the greatest return, choose the most advanced, the most suitable system.
In the software vendor side, hoping to minimize the pay, the minimum cost of sales, including at least the human input (in particular the work of consultant input), the minimum time investment, the smallest Chanpin with program Zhan Shi Deng, maximum return less of content that is signed, the maximum amount of the item.
As a result, the project selection process, firms may be the real problem will hide the business, management Xuqiu has not conducted any adequate internal reflection, software vendors do not fully understand all the needs of businesses, products and solutions in the choice of there will be deviations in, for later implementation of the project laid the risks.
Similarly, software vendors may not fully display their products and programs, hide a lack of products, the risk for the implementation of the project buried.
So as to prepare the implementation of ERP business, should first take seriously their own management needs, dare to demand of all "exposed" to the manufacturer, if the companies do not have such conditions, the provision of conditions and opportunities for software vendors "know" so Although software vendors as to more clearly understand the needs of business investment to improve the system, but only after this step to ensure that the reduced project risk. The software maker to objectively explain to the clients products and programs, inadequate, so that companies fully understand the basis of judge the success of the project cleared the final obstacle.
Second, the parties can not rely on fragmented information exchange to determine whether or not the project co-operation, must be a standard communication process.
As we all know, in the system selection process, both sides need to be a judge, that the needs of enterprises and software vendors products and whether the program is the best match, what way software vendors use to meet the real needs of enterprises and planning, the the basis for the success of the project. If companies do not know how to clear their own needs and accurately communicated to the software vendors, software vendors program and can not allow enterprises to have a full understanding, cooperation in this project is full of uncertainty, "bomb", do not know the project which stage of the implementation of an explosion. If there is a standard, transparent, mutually recognized process of information exchange and communication will ensure that key information in the full realization of the "symmetric", assurance will ultimately lead to a realization of the project blueprint, so that results of the implementation of the project controllable.
To achieve this process, software vendors should establish a standard procedure, application planning tool. It should be said, in a number of software vendors, have different levels of operation in accordance with this approach. For example, the software vendor for research, given the program, to explain programs, product demonstrations and so on. But now, these methods also lack a relatively mature specification or standard, is often a one way, a project of a practice.
Third, scientific understanding of the needs of individual enterprises and ERP applications, the relationship between common, take a proper "degree."
On the surface, for each enterprise "tailored" implementation of the ERP is the best choice for business, but the development of point of view, companies not only as a "tailored" to pay a higher investment and enterprise dynamic development will continue to accept the need for abandoning the old and new "tailor-made" almost unsustainable. The software maker also impossible for all "personalized" business to continue to support, not put in more effort on new product development.
Therefore, enterprises choose ERP systems must start from the critical needs, in accordance with the principles of the importance of demand management systems to achieve full use of reasonable common standard ERP systems, on this basis to consider their own specific needs, rather than cart before the horse, asked own personality completely ignore the system to meet the overall application objectives.
Similarly, software vendors of software products through the continuous upgrading to ensure the continued upgrading of enterprise management, rather than struggling with the development of a patch in a stagnation.
In the above understanding under three aspects, enterprises and software vendors can sell the game in the selection process and following a number of strategies and approaches for achieving greater "win-win":
Enterprises:
To attach great importance to ERP selection process, given sufficient manpower and time investment. Conditions with the company, you can put the relevant personnel, their order business processes, carding business management needs, with clear objectives, which communicate with the software vendor and determine the adaptability of programs and products. Conditions do not have the business, can give software vendors to provide adequate research opportunities for software vendors to fully understand the business needs and objectives of management, based on the two sides in this communication and discussion program.
Enterprises should take full account of practical needs and future development of the relationship between demand and balance the contradiction between the objectives and inputs, from the perspective of long-term construction planning to conduct ERP.
Rational software vendors to determine product needs and programs of their own satisfaction, not overly ambitious and led to complexity of the system.
To be compatible with the target given investment budget, and not through the competitive pressure is forcing software vendors to accept the contract below cost levels.
Software players:
Research needs to establish a standard system, through a qualified consultant to conduct research, carefully and fully understand business management needs.
In the survey, based on careful analysis of needs by combining their products, develop allows companies to fully understand the program and clearly demonstrate to the enterprise.
Demand for the company to clearly tell customers what is reasonable and what is unreasonable and what is achievable and what is the next product upgrade to achieve, which is the product will not achieve, in the long term, This is beneficial to both sides, and responsible manner.
Under the pressure of competition, not to get the contract "accommodate" customers, for example, signed a contract below cost, but can not give enough in the time of the implementation of power projects which led to low quality; agreed to unreasonable customer demands through the system of patches to achieve, leading to system stability and maturity decreased.
In short, the angle of the two sides cooperate to stand up to "game", from the long-term development vision to deal with ERP projects, it will be sustainable "win-win" rather than short-term party "profit", both long-term are "damaged."