Aries Technology Group Blog

From time to time, it’s very healthy to take a look at ourselves and our business from a humorous perspective.  The day that we stop making fun of ourselves is the day when we stop enjoying life.

So, here is a video that pokes a little fun at consultants.  Please let us know if we coalesce too many vapors!

I will warn you that the video contains some colorful language from the Mel Brooks film History of the World, Part 1.  If you are offended by 4 letter words, you should probably skip it (although it’s really funny).

An article from the Wall Street Journal by M.P. McQueen entitled Bloggers, Beware: What You Write Can Get You Sued makes good points about the pitfalls of social networking and blogging.

If you’re already into the world of social networking or thinking about creating a blog, make sure to check that your insurance policy covers any potential exposure you may have under libel and slander laws.

Yes, all of these activities are covered under First Amendment rights but the problem is that you still may end up paying attorneys fees simply to defend yourself.

Copyright infringement is another potential problem area with blogs.  Always make sure to attribute the source documents when you refer to someone else’s material in your blog articles.  Usually, a simple link to that article, the name of the publication and the author’s name will work.  If you’re unsure, ask the person who wrote the article.

The other side of this situation is: how do I reduce or eliminate the need for your company to worry about bloggers and twitterers posting defamatory remarks about your company?  I think that it’s simple.  Do what you say you’re going to do and do it well.  And if you get a bad review or comment, act quickly to fix the problem that caused that bad review or comment.  Lawsuits only make everything worse.

Ken Nelson at The New York Times wrote a great article about pricing innovation from the San Francisco Giants baseball team.  The article is titled Baseball Tickets Too Much? Check Back Tomorrow.  Here is a bit of what Ken says:

Setting ticket prices to sports events requires that one hope for the best but prepare for the worst.  Teams want prices high enough to cash in if they play well, but need them to be low enough to draw fans if they falter.

But because teams set their prices months before opening day and resist changing them later, they have trouble reacting to the unexpected, like the weather, winning and losing teams or, this year, the ferocity of an economic downturn.

The San Francisco Giants are experimenting with a possible solution – software that weighs ticket sales data, weather forecasts, upcoming pitching matchups and other variables to help decide whether the team should raise or lower prices right up until game day.

How many of us have reexamined and rethought our pricing philosophies lately?  I think the current economic conditions present a great opportunity for all of us to look for more creative pricing strategies.

Pricing is definitely an art and not a science.  Therefore, it can be an experimental endeavor and we can’t be unwilling to risk making mistakes along the way.  Most of us have never really thought about pricing as a core business competency.

For us, it was whatever Sage somehow magically decided was retail price for software plus an hourly rate for our services that our customers certainly did not have any input in determining (who would dream of such a thing!).  That wasn’t much of a strategy and was certainly more prone to mistakes because it was basically a random approach to pricing.  We were saying: one size fits all.  I don’t know of any two companies that are exactly alike so that strategy couldn’t possibly have worked.

At the Giants level, implementing pricing software to assist with setting prices probably makes sense.  However, for most of us I think pricing strategy will still be set by people.  I like the idea of establishing a pricing group within the company and involving people from different areas of the company (not just the sales department).  I think it is valuable to include people who are outside of your company.  We continue to take this approach by asking customers how they would like to do business with us.

An economic downturn is the perfect time to introduce innovative thinking into your business and innovative pricing is the most powerful change you can make.

There are 3 C’s in Sales Tax:  Compulsory, Complex and Costly.   If you are a company doing business in one state or many states, you are familiar with the headache of calculating, preparing and filing sales tax returns.  Automating the sales tax process can save you money and effort!  Sage Sales Tax provides the most complete compliance solution — from the point of sale to electronic filing and payment — streamlining a cumbersome process for millions of businesses and reducing the risk of loss or penalty in case of an audit. 

There are many benefits to using the Sage Sales Tax solution.  First, accuracy.  Sage Sales Tax has the most comprehensive jurisdictional assignment capabilities, extensive research, and the most up-to-date rates and boundary information.  Second, speed.  Sage Sales Tax quickly applies sales tax calculations in the background of MAS via a secure, encrypted Internet connection.  There is no disruption to your workflow.  Third, reports.  Detailed, on-demand reports provide you with quick access to the information you need to prepare and submit sales tax returns.  Fourth, rules and regulations.  As we all know, the calculation of sales tax is based on more than just a simple tax rate.  Sages Sales Tax easily manages nexus and taxability rates.  Fifth, ease of use.  The set-up process is easy, enabling you to immediately begin saving effort and money. 

Sage Sales Tax is a hosted, Web-service-based solution that automatically performs address validation, sales tax jurisdiction research, and rate calculation, all on the fly within your accounting application, with no change to your existing workflow.  Sage Sales Tax integrates with Sage MAS 90, Sage MAS 200 and Sage MAS 500.  Pricing is in the form of a set-up fee as well as a monthly fee based on an estimated transaction volume for the first year.  If the transaction estimate is exceeded, you can upgrade to the next level of service or continue by paying a small per-transaction fee.  Tax rate and statutes are provided in the Sage Sales Tax database, so you never have to install an update or a rate change. 

Remember, dealing with sales tax doesn’t have to be time-consuming or error-prone.  Feel free to contact me if you would like further information regarding this service.

What’s in store for Sage MAS 90/200 in the upcoming 4.4 release?  What follows are notes and comments from last week’s Sage Insights partner conference in Nashville, TN.  Sage titled this session “The Road Ahead” and offered a glimpse at what’s coming up for all of us.

The notes were provided by Robert Wood at DDF Consulting Group (www.ddfcgi.com) in Starke, FL.  Robert’s LinkedIn profile is http://www.linkedin.com/in/bertowud and he can be followed on Twitter at www.twitter.com/bertowud.  Robert is an owner at DDF where he enjoys working on projects that require “out of the box” thinking.  He specializes in software implementation, Crystal Reports, Excel and integrating MAS 90/200 with other software systems.  In his spare time, he enjoys spending time with his wife and kids, reading and watching movies.

The notes refer to two Sage employees:  Erika Jelovsek, Senior Product Manager and Roberta Vigil, Product Manager.  Erika and Roberta provided expert demonstrations of the new features in Version 4.4 and more importantly, maintained incredible patience with all of the curious Sage partners in attendance.

Also included are comments from Wayne Schulz at Schulz Consulting (www.s-consult.com) in Glastonbury, CT.  Wayne’s LinkedIn profile is http://www.linkedin.com/in/mas90guru and he can be followed on Twitter at www.twitter.com/mas90guru.  If you want to stay up to the minute about all things MAS 90/200 related, I suggest that you follow Wayne on Twitter.  He will also keep you up to date on everything technology and gadget related.

I have included a few of my observations as well.

A Reminder from Robert: All planned features that we’ve discussed (as well as shipping deadlines) are preliminary and tentative. Until the product ships you should not assume that the feature will be included. While we strive to maintain this information so that it is as accurate as possible we cannot be responsible for features that are (or aren’t) added but which we’ve discussed here.

Changes in MAS 90/200 Version 4.4:

• Customer number will be 20 characters. For existing users there is a setting to convert from seven characters, but once that setting is changed, there is no going back.
• All new implementations will have 20 character customer numbers. This is in addition to the two digit division number.
• Item numbers will be 30 characters. Same deal as customer numbers (once changed there’s no going back). Existing users can choose to move up. New implementations will be 30 characters.
• Inventory transactions can now go up to four decimal places to match work orders. If you use the decimal places you no longer lose digits to the left of the decimal. This setting will be in Common Information.
• Addition of a Standard Cost Adjustment utility.  This utility will be patterned after the Automatic Price/Cost Change utility
  • As a result of adding this utility, the ability to change Standard Cost from the Inventory Maintenance screen has been removed unless the quantity on-hand for that item is zero.
  • The System Activity Log will indicate the starting item number, the finishing item number and the number of items updated by the utility.
  • The utility will create a journal entry and update to the General Ledger.  This feature eliminates the need to enter a manual journal entry for changes to Standard Cost. 
• In Physical Count you can have the current quantity on-hand print on the worksheets and have it populate current quantity on-hand in Physical Count Data Entry.
• Addition of the option to print current or historical Standard Cost on the Inventory Valuation Report. Because of this change, the Inventory Valuation by Period will work properly.
• The Inventory Detail Transaction Report, Inventory Valuation Report by Period, and Inventory Trial Balance can be printed in either portrait or landscape mode.
• Standard Cost items can be valued at zero cost. They will be relieved from inventory at zero cost. The inventory account in General Ledger will be untouched while Standard Cost is zero. The purchase cost will be offset in General Ledger at the time of Purchase Order Receipt of Goods/Invoice.
• The CI_Item table will contain all inventory items, miscellaneous items and saved comments.

At least for the moment, Sage considers MAS 90/200 Version 4.4 to represent the completion of the Business Framework:

What will happen to the still unconverted modules of Payroll, Bill of Materials, Work Order and Job Cost? Sage is not sure yet. There was some discussion of “replacing” Job Cost with either a project accounting module or adding project accounting functionality to the core in some form.

WAYNE: I heard the same feedback from walking the trade show floor and talking to developers. In the product planning session for Sage MAS 90 and 200, I was left with the impression that Sage is NOT indicating that the remaining modules will never be updated to the framework but rather the timeline is undetermined.

WAYNE: The Payroll module seems like a slam dunk to upgrade since Sage indicated 50% (or slightly more) of all Sage MAS 90 implementations use Payroll. The issue with a Payroll upgrade (both from stated reasons and behind the scenes chatter) is that it’s complex and the code being updated is from many years ago. 

Several other changes with 4.4 are: 

• The addition of web services (more on that below)
• Customizer enhancements (also more below)
• Parallel migrations. Roberta demonstrated the parallel migration functionality. It’s basically the same steps we went through when converting from 3.71 to 4.x. The wizards all look the same. The logic is the same. 

Version 4.4 is scheduled to be released Q1 of 2010. (This is new release information as the prior date was Q4 2009).

Customizer enhancements:

• Adding scripting functionality to specific MAS 90/200 events that no longer require user interactions (no buttons).
• You can establish validations on any column.  These validations work with the user interface, Visual Integrator, the business objects, and presumably the new web services.
• You will be able to automatically total detail numeric UDFs to the header object and create cumulative calculations on multiple records and save those calculations to the table or UDT during update. Example given was if you are totaling quantity sold by salesperson, you could have the calculation update to a UDT or to a UDF in the salesperson table when the invoices are updated.
• Going forward all VB scripting customizations will survive upgrades.
• MAS 90 Small Business Edition will include Payroll as an option and Sage SPS Credit Card will be provided at no charge.
• What are web services? Web services are the Business Objects optimized for use with the web. The demonstration was a website developed by ISM Barsa for Moonstruck Chocolatier (thanks Moonstruck for the free samples. No I’m not sharing.). It’s not online yet. The rep from ISM Barsa said the most difficult part of implementing the web services elements of the new website was ripping out the existing Business Objects code so they could implement with the new web services.

  WAYNE: The go to person for web services is Angela Goldsmith of ISM Barsa – angela@goism.com – LinkedIn – ISM Barsa Web Site. I spoke to Angela several times about the web services and her company is providing some assistance to get this all running.

  • The first phase of web services will include Sales Orders, Contacts, Customers, and Credit Cards. Phase II will include Inventory Items and more. Again the stated purpose was to optimize the Business Objects for the next generation of e-commerce.
  • Stated benefits of web services: scalability and separate front end from back end. My interpretation was they were further splitting up the programming of the MAS 90/200 interface from the data layer for use in third party applications.
  • Challenges for implementing web services: knowledge for back-end development and data mapping in and out is complex.
  • The Business Object interface was not designed for direct over the net communication and Web Services is designed for direct over the net communication.

  WAYNE: My interpretation of the Web Services is that they’re cool new extensions for linking to third party shopping carts. In the product planning session for Sage MAS 90 and 200, I was left with the impression that while eBusiness will remain for the foreseeable future that these Web Services may become the “going forward” primary e-Business connection.

• On the front page to MAS 90/200, Sage is adding links to the new Sage MAS Community forum and to their new hosted feedback solution, Ideascope. When you submit an enhancement request from Ideascope it will try to match your recommendation up with existing recommendations and allow you to say that your request matches one that already exists and add your vote to the tally or you can add yours as a new request. With the link to Ideascope on the front page in MAS 90/200 and not having to log into a website to make requests, it should make it easier for customers to submit their suggestions. Ideascope will be available soon. Erika did not give a date.

What’s happening with FRx?

Sage hasn’t made a decision on a replacement and appears to be early on in their search for a replacement. Most customers prefer using Excel and want drill down, wizards, real time data, and simple conversions. While development has discontinued, Microsoft will continue to support FRx until December 2011, so Sage doesn’t feel huge pressure to make a decision.

WAYNE: General feedback was that FRX hasn’t broken in the last 5 years and probably will continue to work another 5 years – so there’s not a huge sense of urgency to move existing FRX users though certainly after 2010 (when FRX new sales end) there will need to be a different financial reporting solution bundled with General Ledger. We’ve received no indication on what the replacement for FRX will be though F9 or Biznet BizExcelarator are two leading candidates in my opinion.

JOHN: We have customers using the BizExcelerator as an alternative to FRx.  My opinion is that it is the superior product to F9 and will be the ultimate replacement for FRx.  The question for FRx’s longevity may reside in Microsoft’s ability to keep it running in future operating system versions.  A patch made it compatible with Vista but for how long will Microsoft be able to patch it?

• Another big issue is PA-DSS compliance or Payment Application Data Security Standards. These are the rules that require credit numbers to be stored only in encrypted form and standards designed to protect consumers from credit card fraud. Sage has engaged an audit firm to get them certified by later this year.
• International Financial Reporting Standards (IFRS) compliance is something Sage is looking into and has in the works, but they are looking for feedback.

Some new features with MAS 90/200 EES (Extended Enterprise Suite) version 1.3 are:

• Salesperson mapping to allow for divisions
• One salesperson in CRM can be mapped to different required salespeople in MAS 90/200
• Opportunities can be entered on-the-fly from CRM
• Copying of orders from selected company will be allowed in CRM
• FAS will be updated to reflect the changes required by the American Recovery and Reinvestment Act
• Fixed asset snapshots tool will be added to FAS
• CRM will be supported in a Terminal Service environment
• EES Version 1.3 will be based on the MAS 90/200 Version 4.3 code

Planned features for MAS 90/200 EES 2.0 are:

• MAS 90/200 info will appear in the CRM User Interface
• Opportunities can be entered on-the-fly from MAS 90/200
• Ability to copy orders to/from any customer in CRM
• Addition/integration with FAS 2010.1
• Addition of role-based landing pages in CRM
• CRM will support Microsoft IE 8
• EES Version 2.0 will be based on the MAS 90/200 Version 4.4 code
• The order entry screens in CRM will be the JavX screens from MAS 90/200.  This provides the dual entry lines in MAS 90/200 order entry and any JavX customizations made to the MAS 90/200 screens
• Scheduled to be released in Spring 2010

Planned features for EES versions beyond 2.0:

• Support for additional security roles including purchasing agent and customer service (RMA)
• Multiple company support.  One CRM database will be able to update multiple MAS 90/200 companies
• Mobile solutions (iPhone and Blackberry)
• Business intelligence tools
• With EES having three different databases, we may see some consolidation toward a single platform (i.e.: move FAS to SQL instead of Sybase).

Future requests from customers for Sage MAS 90 and 200 enhancements are:

• Electronic payments for Accounts Payable
• Electronic bank reconciliations
• Sales history tracking for drop shipped items
• One-click General Ledger journal entry reversals

Sage MAS 90/200 from 2010 and beyond:

• Inventory multi-bin capabilities
• Expansion of additional key field lengths (e.g. Vendor Numbers)
• Positive pay capabilities
• Addition of other Extended Solutions to standard products
• Vertical industry functionality
• Additional business intelligence capabilities
• Database upgrade from Providex to SQL
  • Better reporting
  • Easier data transportation/warehousing/extraction
  • Only for modules currently in the business framework
  • Scheduled for release approximately 6 months after version 4.4 is released

Job Cost

• Erika: Next question.
• Sage is probably moving to more of a project accounting model than job cost.
• A suggestion from the audience was Sage should survey existing job cost customers to see what they thought.

Payroll

• No decision has been made yet.

JOHN:  My thought is that there may be a push in the future to move Payroll users over to the on-line Sage payroll service.  However, I think that is several years away.

ROBERT: And wouldn’t sit well with many of the Sage partners.

MAS 200 SQL Version 3.7x 

• I asked Erika what was the migration path for existing MAS 200 SQL users. Her answer was none. They would either have to convert from MAS 200 SQL to current 4.4 or use a tool like the DSD SQL to MAS 3.71 conversion utility and then upgrade.

WAYNE: During Insights 2009 we learned that Sage is in negotiations with DSD Business Systems to purchase their MAS200 SQL Migration Utility. The game plan appears to be that Sage will discuss migration with each MAS 200 SQL 3.74 customer on an individual basis to get them to the MAS 90 4.x platform. There likely will not be one broad migration announcement for those customers still using MAS 200 SQL 3.74.

JOHN: The migration utility may offer an alternative to the option of moving to MAS 500 for customers who are using Version 3.7x.  However, I got the distinct impression that the SQL database for Version 4.4 will be MySQL and not Microsoft SQL Server (keep in mind that is an impression and not a statement of fact).  I’m not sure that MySQL would be acceptable for most IT departments who are looking to consolidate all of their applications in an already existing MS SQL environment.

This past week I had the pleasure of co-presenting a session at Sage’s annual partner conference with Ed Kless of Sage.  This year the conference was held at the Gaylord Opryland in Nashville, TN which was great for me since Nashville is only a 2.5 hour drive from home.

Ed asked me to talk about a concept that we implemented at Aries about 18 months ago.  It is a concept that has proven to be invaluable to us from a productivity standpoint.

The concept is called ROWE which stands for Results-Only Work Environment.  The basic premise of a ROWE is that you work in an environment that is focused on accomplishing results during the work day instead of focusing on rigid schedules, required meetings and structured vacation/sick/personal policies.

Yes, that means there are no work schedules, no required meetings and no time-off policies when a company adopts a ROWE.

Now, I didn’t create this idea.  It was pioneered by Cali Ressler and Jody Thompson at Minneapolis-based electronics retailer Best Buy.  They documented this incredible transformation in their book “Why Work Sucks and How to Fix It.”  I highly recommend both the book and their blog (www.caliandjody.com/blog).

I strongly believe that implementing a ROWE is one of the primary reasons, if not the primary reason, that Best Buy is still in business and Circuit City is not.  The last time I checked, Best Buy stock was valued around $38 per share and Circuit City was around $.022.

All 4,000 Best Buy corporate employees are currently working in a ROWE.  Their productivity has dramatically increased and their employee turnover rates have dramatically decreased.  Talk about adding dollars straight to the bottom line.

For us at Aries, implementing a ROWE has:

• Increased our job satisfaction because now we all work the way that is most comfortable for each one of us.  This translates directly to increased customer satisfaction since it completely redefines the definition of a “good” day at work.
• Created an environment that is very attractive to the most talented people.  Doesn’t everyone want to work at a company where they are in charge of their own lives?
• Believe it or not, a ROWE actually increases the amount of work that we can accomplish.  Personally, I have been able to complete many more projects once I clearly defined my results for a week, a month, a quarter and a year.  That seems like a small and obvious change but it yields huge results.

The most positive experience for any company who decides to implement ROWE is that it forces everyone in the organization from the President to the receptionist to clearly define their results.  Think about it this way, when we were in school we were responsible for setting our own results, for setting our own schedule and for making sure that the results were accomplished.  We grow up and instead of graduating to adult status; we revert to being treated like a child who cannot be expected to accomplish anything without the constant attention of a parent (boss).

When you give someone control over their lives, there is no limit to what your employees and your company can accomplish.

If any of our customers are interested in talking more about ROWE or if they’re ready to take the plunge, I would be more than happy to assist in any way possible.  That’s one more way to put an Aries unlimited support agreement to good use.

An example of how the billable time model doesn’t work in the real world.  Imagine if the airlines priced based on billable time:

The Knoxville businessperson stepped up to the airline ticket counter and asked to buy a ticket for a flight to Atlanta.

“No problem,” said the clerk, “but before I issue the ticket, I should remind you of the new way we charge for tickets.  This year we have adopted a ‘basic rate’ of three dollars a minute for our flights.  The clock starts when you check in at the gate and stops when you pick up your luggage.  We mail you a bill about two months after the flight.”

“Well, I guess that’s okay,” commented the businessperson.

The clerk continued, “Remember, we call it a ‘basic rate’ because we sometimes adjust that rate up or down if the flight is very empty or very full.  Too, we may multiply that rate if our expert pilot finds a tailwind.  We also adjust the rate according to what you will be doing in Atlanta.  You look like a businessperson, so I’ll assume it’s very important that you get there by plane, so we quadruple the basic rate.  Another thing, how much is your annual income?  You see, if you earn a great deal and it turns out the plane crashes, we will have to pay more on your spouse’s damage claim, and we have, of course, to consider that increased risk of the airline.”

The astounded businessperson choked, “But how much will this trip cost me?  How do I know you don’t slow down on purpose?  How do I know your bill will be correct?”

The clerk stared down over the end of his nose.  “I can see you’re not familiar with the complexities of airline work.  There are so many things we just can’t know in advance – the winds, traffic delays, the weather, the routing.  Airlines are a business, and we have to make a profit to stay in business.  Now don’t worry, we’re very honest and sensitive about all this billing business and I am sure you’ll be pleased with our fully itemized bill when you get it.  If there’s any question just call.”  Then the clerk whispered, “But just so we understand each other, if you don’t pay the bill in full and promptly, you’ll never fly on this airline again.”

“Oh,” grunted the Knoxville businessperson, “is there anything else I should know?”

The clerk smiled thoughtfully and murmured, “On your flight there is a new copilot in training, and we charge an additional 50 cents a mile.  Copilots are really very important, you know, to carry the pilot’s charts, to fly on clear calm days, even to land the plane if the pilot is busy with other matters.  Too, if you fly with us again, your copilot may have become your pilot.  Wouldn’t that be great?  One other thing, if the copilot uses computerized flight routing there will be an additional $75 charge.  But of course computerized flight routing is almost standard charge with technologically advanced airlines.”

“But I just wanted to get to my meeting in Atlanta and come home.  Now I don’t even know if I should fly at all,” groaned the businessperson.

The clerk smiled again.  “Mature passengers come to understand that flying is just a cost of doing business.  They never know how much it costs ‘til we bill them.  But then, there’s really no choice, is there, since that’s just the way it’s always been done?”

“No,” conceded the businessperson, “I guess not.”

And then the businessperson tried again.  “Why can’t you just give me a fixed price and I’ll decide if I’ll go or not?”

The clerk frowned.  “But we can’t do that.  That wouldn’t be fair to you.  We might overcharge you and then you’d be unhappy.  Or we might underestimate and then the airline would lose money and couldn’t maintain the planes, and we certainly don’t want that.”

And so the Knoxville businessperson came to hate airlines and took his revenge by regaling acquaintances at cocktail parties about the new pitfalls of airline travel.

Adapted from Richard C. Reed Billing Innovations: New Win-Win Ways to End Hourly Billing. Chicago: American Bar Association, 1996.                                                                                                                        

The idea of airlines charging for their time seems ridiculous, right?  However, that is exactly how most technology and software companies want to treat you.  You are expected to accept uncertainties regarding the price and timeline of a project as if it is a normal part of running your business.

These companies want you to believe that you are paying them to spend time working on a technology project.  However, what you really want is knowledge and experience that will be put to work solving your business issues and making your company more competitive and more profitable.

There’s no reason to come to hate technology and software companies.  Rather it’s a matter of working with a company who is more interested in your company than simply covering their rear ends by hiding behind billable time.

You really need to look hard at what your prospective software vendor actually is selling. Most of the time – it is not what you are looking to buy.

You require results. You value those results so much you are willing to invest your time and your company’s capital to achieve the results. You want to maximize profits, capture information, increase productivity, reduce costs, decrease turnover and improve communication. This is what you want to buy. 

You begin to look at software systems and the companies that install and support them. We’ll call those companies software resellers. You analyze the features and functions of the packages. You compare the solutions to the results you require. You narrow the choices to a few software resellers and ask them to quote you a price. 

What comes back really defines what the software reseller is selling. And you need to be very careful or else you will open your company up to risks that you do not need to take. What is listed on that quote is what is being offered by the software reseller, nothing more. And if what is offered is not what you want to buy, then you will purchase a result you do not want.

Most software resellers and consultants are in the business of selling time. That is why they quote hourly rates. That is why they quote time estimates. That is why they invoice hours & expenses. The longer they spend on your project, the more they invoice. They try to convince you that the longer they spend on your project the more valuable it must be to you. The basic assumption is time plus physical presence equals value. 

Is that what you truly value? No. You value the original desired results. That is what you wanted to purchase. But if that is not what was quoted or invoiced, then that is not what you purchased. If you purchased the software from a reseller who bills for their time then you bought time plus physical presence. Don’t take on the risk of purchasing something that adds no direct value. 

So ask to see example invoices before you ask for a quote. Like your company’s quotes and invoices, listed out is what the software reseller is selling. Is it a software package plus time & expenses? If so, ask yourself, is that what you really want to buy? A software package is simply a box with disks and a manual. Time & expenses? How does that add value to your company? 

Require the software reseller to sell you the products and results that add value to your company. If they don’t sell results and they don’t stand behind what they sell with a volunteered 100% money-back guarantee then break off the engagement in the sales cycle. After all, they are not selling what you want to buy.

Many websites post FAQs or Frequently Asked Questions.  While helpful, the answers to those questions don’t really help you determine what system or partner adds the greatest value to your company.

What follows is a list of five questions we believe are more critical for you to ask of your potential service or system provider.  The answers will greatly assist you when choosing how to leverage a partnership to achieve your goals and unlock your results.  Listed after each question is a brief description of why you need the answers.

What value do you, the software reseller, bring to this engagement beyond the software features and functions?

This is one of the most important questions you need to bring up with any vendor or partner.  You are going to be charged a premium above the costs of the actual product.  What does the company bring to the table and, far more importantly, do you value what they bring?

What do you, the software reseller, actually sell? 

What the company sells is what is detailed on their invoices.  If the invoices state travel expenses, per diem expenses, software cost and hours worked then that is what they sell.  A look at what the company internally measures and how it holds their employees accountable will give you a much better understanding as to what they actually sell.

What support options do you, the software reseller, offer?

Many companies look at the current project and don’t address the long-term support that project will require.  Make certain that what can be offered for future needs matches what you require before you engage the partner.  Will you require support hours beyond normal business hours?  Will you require weekend support?  Will you require multiple training sessions or customized training?  Explore what you will need with your partner and determine if they can support you.

How do you, the software reseller, stand behind your work?

This is a confidence question.  Companies that provide good value are everywhere.  Companies that provide great value stand behind their promises with guarantees.  If the company is not confident enough in their own work to explicitly volunteer a guarantee, why should you be confident in them to deliver the promised results?

Should I look for a short-term, transactional relationship or a long term, strategic partnership?

This is a fascinating question that is often completely ignored in the process of finding a new system.  Really, only you can answer this question, as you know what type of relationship works best for you and your company.  Asking the question, however, will determine whether the partner you are interviewing aligns with your vision of the relationship.

When performing your diligent research, be sure to articulate what type of relationship you want with your system provide.

You’ve come to a decision.  You need a new system.  You are not getting timely or accurate information.  The current processes are too manual and require too much hand-holding.  You are losing opportunities.  You are growing.  You need a new system.

One of the first decisions you need to make is often never addressed:  “What type of relationship do we want with the new system provider?  Do we want a strategic partnership or a transactional vendor relationship?”

A transactional vendor relationship is non-intrusive.  Your goals and required results are unknown to the system provider.  You research the features and functions of the new system.  You purchase the system.  You learn it, implement it, customize it and get it running.  You find issues and determine workaround procedures.  Any issues that you cannot solve are sent to the system provider’s tech support number on the box.  You alone are accountable as your company grows to keep the system evolving to maximize your investment.

A strategic partnership is altogether different.  You share your goals with a strategic partner and leverage that partner’s knowledge to achieve the required results.  It is more intrusive than a transactional vendor relationship and there delves much more deeply into your processes and information.  It is a collaborative effort; a shared responsibility.  As issues arise, you work personally with the partner to find the best solution.  As you grow, your partner keeps pace with your new goals and feeds you information on how to best maximize your system.

There is nothing wrong with either kind of relationship. Your choice, however, needs to be deliberate. You need to understand the consequences of your choice. You need to articulate the value you expect from your choice to your team. Ignoring, or avoiding, the discussion will lead to confusion, frustration and very often failure.