We are in the process of developing an interface between a mobile payment provider and our enterprise resource planning (ERP) system for a major client at the forefront of retail developments. What is this mobile payment wave all about?
Not surprisingly, as the number of mobile handsets around the world has exceeded the one billion mark, there is substantial interest in mobile payment mechanisms among retailers, banks, vendors and payment networks. Mobile payment is a new and increasingly popular alternative payment method. Instead of paying with cash, cheque or credit cards, a consumer can use a mobile phone to pay for a wide range of services and goods.
The mobile payment provider offers cross-operator and cross-border opportunities for consumers to buy goods simply, quickly and securely using the mobile device that they always have with them. The consumer can transfer money, buy airtime and electricity, make point of sale payments at retailers and pay bills from their mobile phones.
Benefits of mobile payments to the consumer:
• Mobile payments are cheaper than banks
• Mobile payments are secure
• Mobile payments are convenient (buy airtime and electricity from home)
• Mobile payments are fast – money is available immediately
• Mobile payments are available to everyone, on any cellphone and on any network
• Mobile payments saves you time: buy airtime and keep on watching that
soccer game on your couch
• Mobile payments are cool
Benefits of mobile payments to the merchant:
• Reaches new target groups, such as the unbanked, migrant workers and the
youth market
• Boosts revenue per customer and increases transactions by providing a new
channel to existing customers.
• Separates brand from the competition by offering modern, customer-focused
services.
• Provides customers with a convenient, secure and instant service
• Savings in banking fees
• Commission received for cash payouts
In my view cash and cards are old news. Mobile payment is the future!
For more information visit the QBCon homepage.
Tuesday, November 16, 2010
Monday, November 8, 2010
The value of a loyalty system
QBCon installed a loyalty system for an important client in June 2009. Initially only staff members could receive the loyalty benefits. In December the client ran a promotion for the loyalty system to all its clients. All sorts of projects were launched to encourage the clients to join the loyalty scheme, including competitions. The client spent a lot of money and time on the development and deployment, as well as promotion of this new system. But what benefits can the client receive from this type of investment?
The information obtained from the loyalty system is worth gold. Detailed information of consumer preferences and spending patterns can be used to negotiate with product suppliers. Products obtained at a discounted rate will be placed on promotion that will increase the sales figures to the benefit of both parties. It will also create the opportunity to launch exciting competitions to further encourage buying. This program will encourage loyal buying behaviour in current clients and entice new clients.
Marketing research will also be made easier. Our client will be able to identify each client’s favourite product, determine which clients are most valuable for the business and identify the product that was sold the most over a given period.
The system can also be used to send e-mails and SMS messages to the loyalty clients. These messages can be personalised or promotions. This interaction with the clients will keep them informed and create a positive attitude towards the business.
The profit they make from this scheme will far outgrow the initial expenditure and the benefits will only grow as time goes by.
For more information please visit the QBCon homepage.
The information obtained from the loyalty system is worth gold. Detailed information of consumer preferences and spending patterns can be used to negotiate with product suppliers. Products obtained at a discounted rate will be placed on promotion that will increase the sales figures to the benefit of both parties. It will also create the opportunity to launch exciting competitions to further encourage buying. This program will encourage loyal buying behaviour in current clients and entice new clients.
Marketing research will also be made easier. Our client will be able to identify each client’s favourite product, determine which clients are most valuable for the business and identify the product that was sold the most over a given period.
The system can also be used to send e-mails and SMS messages to the loyalty clients. These messages can be personalised or promotions. This interaction with the clients will keep them informed and create a positive attitude towards the business.
The profit they make from this scheme will far outgrow the initial expenditure and the benefits will only grow as time goes by.
For more information please visit the QBCon homepage.
Wednesday, March 17, 2010
Big bang vs. phased implementations
The first question most project managers ask before an ERP implementation is, “How should I approach this project?” Hopefully I can answer that question here.
Any new system will bring about change in the structure of the client’s organisation. However, users don't always welcome change. A degree of resistance to organisational changes is normal. The project manager's biggest challenge is guiding the client through the necessary changes. Gauging the client's attitude towards change could have a significant impact on the success of the ERP implementation.
Project managers have two options when it comes to change: The big bang approach or the phased approach. Deciding on the approach would depend on the client's needs.
The big bang approach refers to a complete changeover to the new system at a specific point in time. This approach has a significant impact on the client's business processes. Smaller companies usually favour this approach. Most big bang projects have fast and intense implementation periods, with more downtime during the implementation.
The big bang approach is easier to implement but requires more preparation, planning and human resources than the phased approach. The big bang approach is generally more expensive than the phased approach. Companies must have a clear mandate from top management, an experienced project manager, a proven implementation methodology and thorough user training for a successful big bang implementation.
Considering all of these factors, the big bang approach is a little more risky.
On the flip side of the coin we have the phased approach. This approach requires a long-term commitment to the implementation of the ERP. This can either be by functional business area or location. The phased approach relies a great deal on the cooperation and communication between the client and the project manager.
Initially the phased approach will require more maintenance for testing and fine-tuning during the implementation of the system. Constant changes and corrections could become de-motivating to the development team and the project manager needs stricter control during this process. It is the project manager's greatest challenge to keep the development team focused for the duration of the project. Completing a phased implementation successfully requires a great deal of planning.
The phased approach is more cost effective, as it requires fewer resources. For a phased rollout to succeed, however, companies might need an interface between the old and the new system for the duration of the implementation.
The more subtle approach might not get the attention it should and could seem unnecessarily lengthy. However, the phased approach is more user-orientated and therefore meets with less resistance. Following this approach also offers the opportunity to learn from mistakes made during the implementation process.
Which approach is best? Although a combination of the two would be most favourable, the deciding factor remains the client’s needs. Does the client welcome or oppose change? I think the solution might be the big bang approach for the core ERP modules and a phased approach for the non-core modules.
Any new system will bring about change in the structure of the client’s organisation. However, users don't always welcome change. A degree of resistance to organisational changes is normal. The project manager's biggest challenge is guiding the client through the necessary changes. Gauging the client's attitude towards change could have a significant impact on the success of the ERP implementation.
Project managers have two options when it comes to change: The big bang approach or the phased approach. Deciding on the approach would depend on the client's needs.
The big bang approach refers to a complete changeover to the new system at a specific point in time. This approach has a significant impact on the client's business processes. Smaller companies usually favour this approach. Most big bang projects have fast and intense implementation periods, with more downtime during the implementation.
The big bang approach is easier to implement but requires more preparation, planning and human resources than the phased approach. The big bang approach is generally more expensive than the phased approach. Companies must have a clear mandate from top management, an experienced project manager, a proven implementation methodology and thorough user training for a successful big bang implementation.
Considering all of these factors, the big bang approach is a little more risky.
On the flip side of the coin we have the phased approach. This approach requires a long-term commitment to the implementation of the ERP. This can either be by functional business area or location. The phased approach relies a great deal on the cooperation and communication between the client and the project manager.
Initially the phased approach will require more maintenance for testing and fine-tuning during the implementation of the system. Constant changes and corrections could become de-motivating to the development team and the project manager needs stricter control during this process. It is the project manager's greatest challenge to keep the development team focused for the duration of the project. Completing a phased implementation successfully requires a great deal of planning.
The phased approach is more cost effective, as it requires fewer resources. For a phased rollout to succeed, however, companies might need an interface between the old and the new system for the duration of the implementation.
The more subtle approach might not get the attention it should and could seem unnecessarily lengthy. However, the phased approach is more user-orientated and therefore meets with less resistance. Following this approach also offers the opportunity to learn from mistakes made during the implementation process.
Which approach is best? Although a combination of the two would be most favourable, the deciding factor remains the client’s needs. Does the client welcome or oppose change? I think the solution might be the big bang approach for the core ERP modules and a phased approach for the non-core modules.
Thursday, February 11, 2010
Brand over Budget
Brand over Budget
Whether faced with the choice of buying a pair of shoes or a set of golf clubs, people have the tendency to go for “brand” labels. And we’ve come to expect more from “brand” labels … they should last longer, function better and produce more. How many times did you actually reap the benefits of the so-called “brand” labels?
The implementation of an ERP (Enterprise Resource Planning) system is a major investment and commitment for any organisation. Based on the ERP survey conducted by Meta Group in 2002, the average cost of ERP ownership was $15 million (R 112 500 000.00) ranging from half a million to $300 million. The average cost per user per year could be as high as $20,000.
I don’t know about you, but it sounds like a lot of money in anyone’s language. Why would a normal SME (small, medium enterprises) company spend that amount of money for a “brand” label ERP application? In this day and age, with an ever looming financial recession, can you as a business owner really afford to spend millions on an application that does not meet your specific, unique and custom business needs?
Instead of spending millions on an application that is either an overkill, or simply does not fit in to your business processes, why not look at investing in a solution that is:
simplified;
affordable;
easy to use; and
fully customisable?
Yes, you might not have a “brand” label ERP, but at least you will have a custom, business specific, designed and developed application that does what it promises:
HELP YOU AND YOUR BUSINESS DO WHAT YOU DO BETTER, FASTER AND MORE EFFECTIVELY.
Why blow your budget on a “brand” label when you can actually purchase, implement and operate an affordable, cost effective application? – QBCon
Whether faced with the choice of buying a pair of shoes or a set of golf clubs, people have the tendency to go for “brand” labels. And we’ve come to expect more from “brand” labels … they should last longer, function better and produce more. How many times did you actually reap the benefits of the so-called “brand” labels?
The implementation of an ERP (Enterprise Resource Planning) system is a major investment and commitment for any organisation. Based on the ERP survey conducted by Meta Group in 2002, the average cost of ERP ownership was $15 million (R 112 500 000.00) ranging from half a million to $300 million. The average cost per user per year could be as high as $20,000.
I don’t know about you, but it sounds like a lot of money in anyone’s language. Why would a normal SME (small, medium enterprises) company spend that amount of money for a “brand” label ERP application? In this day and age, with an ever looming financial recession, can you as a business owner really afford to spend millions on an application that does not meet your specific, unique and custom business needs?
Instead of spending millions on an application that is either an overkill, or simply does not fit in to your business processes, why not look at investing in a solution that is:
simplified;
affordable;
easy to use; and
fully customisable?
Yes, you might not have a “brand” label ERP, but at least you will have a custom, business specific, designed and developed application that does what it promises:
HELP YOU AND YOUR BUSINESS DO WHAT YOU DO BETTER, FASTER AND MORE EFFECTIVELY.
Why blow your budget on a “brand” label when you can actually purchase, implement and operate an affordable, cost effective application? – QBCon
Friday, January 15, 2010
Is a single-vendor approach better than a best-of-breed strategy?
Ronelle Liversage, account manager at QBCon, shared her thoughts on the enterprise resource planning (ERP) single-vendor approach versus a best-of-breed strategy.
According to Ronelle, best of breed (BOB) refers to using a particular software program or package to meet each of your business' requirements. To share information between the applications, these packages are linked. The links can be established by the vendor or by a third party package (also known as middleware), thus providing varying degrees of integration.
An enterprise resource planning (ERP) system is a single-vendor solution. This means that different modules are combined to provide a comprehensive software solution from a single vendor. These systems generally consist of a number of databases, linked automatically by key fields.
Advantages of an ERP Solution:
• One vendor solution:
One stop shop – the user communicates with one source.
Limited number of Vendors.
Project Management easier with one Vendor
• Viability:
The ERP firms are more established.
• Broader Offering:
Additional products can be offered too.
• Consolidated information
Information is available at one place – no integration needed.
• Overall Cost
Price can be negotiated
Disadvantages of an ERP solution
• Time:
An integrated ERP approach has traditionally taken longer and can create many "Catch 22" situations. There are integral decisions in implementing any component of an ERP system that impact other parts of that same system.
• Diversity:
As ERP vendors are broadening their offerings to reflect the needs of the marketplace, they are involved in many strategic directions that are playing out in parallel. Vendors need to determine where future R&D investments will be applied. The concern is that some of these vendors are trying to be "everything" to "everybody."
According to Ronelle, best of breed (BOB) refers to using a particular software program or package to meet each of your business' requirements. To share information between the applications, these packages are linked. The links can be established by the vendor or by a third party package (also known as middleware), thus providing varying degrees of integration.
An enterprise resource planning (ERP) system is a single-vendor solution. This means that different modules are combined to provide a comprehensive software solution from a single vendor. These systems generally consist of a number of databases, linked automatically by key fields.
Advantages of an ERP Solution:
• One vendor solution:
One stop shop – the user communicates with one source.
Limited number of Vendors.
Project Management easier with one Vendor
• Viability:
The ERP firms are more established.
• Broader Offering:
Additional products can be offered too.
• Consolidated information
Information is available at one place – no integration needed.
• Overall Cost
Price can be negotiated
Disadvantages of an ERP solution
• Time:
An integrated ERP approach has traditionally taken longer and can create many "Catch 22" situations. There are integral decisions in implementing any component of an ERP system that impact other parts of that same system.
• Diversity:
As ERP vendors are broadening their offerings to reflect the needs of the marketplace, they are involved in many strategic directions that are playing out in parallel. Vendors need to determine where future R&D investments will be applied. The concern is that some of these vendors are trying to be "everything" to "everybody."
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