Success in any major venture is often determined not just by the merit of the idea but also by its timing. The business landscape is littered with ambitious projects that were either prematurely executed or initiated without adequate preparation. The downfall of Google Glass and Apple’s Newton, and the meteoric rise of Apple’s iPhone are great examples demonstrating the significance of timing and preparation.
“A project that is completed punctually but that doesn’t work well cannot be considered a success.” – McKinsey
Projects that never saw the light of day: Google Glass & Apple Newton
In the realm of product and system implementations, timing, preparation, and the correct alignment of objectives play pivotal roles. Initiatives such as Google Glass and Newton might have been thought to be groundbreaking at the time of their release, but they faltered due to various factors like design, timing, cost, and the inability to connect with the target market’s core needs. Apple’s foray into the handheld device market in the early 1990s resulted in Newton, a pioneering personal digital assistant (PDA). Launched in 1993, the Newton was touted as a revolutionary product, aiming to bridge the gap between computers and personal organizers. However, it failed to make a significant impact. Despite its innovative features, such as handwriting recognition, the Newton was plagued by accuracy issues, leading to widespread criticism. Additionally, its high price point, large size compared to other PDAs of the era, and the rapid evolution of competing devices sealed its fate. After a series of iterations and attempts to rectify its shortcomings, Apple discontinued the Newton in 1998. While the Newton itself didn’t achieve long-term success, it laid the groundwork for future Apple handheld devices, most notably the iPhone and iPad.
The winners of the game, however, were projects that were launched only after exhaustive evaluation, a thorough understanding of the market, and perfect timing. The success story of Apple’s iPhone exemplifies this principle. Introduced to Steve Jobs in 2001, it was not rushed into the market. Instead, there was an emphasis on honing the product, aligning it with Apple’s vision, and ensuring market readiness. It took six years from the idea’s inception to its successful launch in 2007, and the iPhone has since set industry standards.
Understanding CRM and ERP Implementation Failures
Meanwhile, on the CRM (Customer Relationship Management) and ERP (Enterprise Resource Planning) fronts, the challenges are equally daunting – Mega projects like these are also not immune to failure;
In the landscape of modern business, effective use of CRM tools is crucial. According to Scott Edinger of HBR, “In 2017, CIO magazine reported that around one-third of all Customer Relationship Management (CRM) projects fail. That was actually an average of a dozen analyst reports. The numbers ranged from 18% to 69%. Those failures can mean a lot of things — over-budget, data integrity issues, technology limitations, and so forth. But in my work with clients, when I ask executives if the CRM system is helping their business to grow, the failure rate is closer to 90%.” One underlying issue is the diverse expectations set on CRM systems. Often, they are burdened with multifaceted objectives, spanning from marketing to sales and finance, making their primary focus unclear and thus diluting their effectiveness. However, it’s noteworthy that while CRM systems aim to provide comprehensive insights and analytics, their primary goal should be to facilitate and enhance the sales process. The frontline sales professionals, who are pivotal to revenue generation, often find little value in exhaustive data entry or features that do not directly aid in closing deals. As a remedy to this multifaceted problem, integrating specialized enterprise tools like Configure, Price, Quote (CPQ) with CRM systems can bridge the gap. CPQ tools streamline the sales process, making it easier for sales teams to generate accurate quotes, tailor product configurations, and accelerate deal closures. When used in conjunction with CRM, businesses can better cater to the unique needs of each department while ensuring that the sales team is empowered with tools that genuinely assist them, thus promoting both operational efficiency and revenue growth.
ERP systems have promised the seamless integration of all the information flowing through a company – from the financial data, human resources data, to supply chain information. The allure of having a single, unified system for all organizational data is undeniable. However, ERP implementation failures have been all too common in the business world. A multitude of reasons can be attributed to these failures: overly ambitious project scope, resistance to change within the organization, inadequate training, or simply underestimating the complexities involved in such a massive system overhaul. One of the most famous ERP disasters is Hershey’s failed SAP ERP implementation in 1999 which led to a 19% drop in quarterly profits and inability to deliver $100 million worth of Kisses for Halloween. Besides this, CIO’s published an article that contains a long list of companies that suffered severely as a consequence of ERP implementations that went haywire; Revlon, PG&E, and everyone’s favorite Target, amongst others. It is not just the tangible monetary loss; the reputational damage from such setbacks can haunt a company for years. Thus, while the benefits of a well-implemented ERP system can be transformational, the risks of a mismanaged ERP project can be catastrophic. Successful ERP projects demand a clear understanding of organizational needs, meticulous planning, phased roll-outs, and an unwavering commitment to training and change management.
Plan, Prepare, Execute
Precision in the execution of enterprise initiatives has never been more paramount. A staggering 70% of projects globally fall short of their objectives, according to a report shared by Teamstage.io. Why such a high failure rate? The reasons vary widely, but some of the most prevalent include a lack of preparation, insufficient documentation and tracking, poor leadership, failure to clearly define and enforce parameters, inexperienced project managers, inaccurate cost estimates, and miscommunication between teams. Furthermore, a clash between cultural and ethical beliefs, subpar resource planning, and ignoring early warning signs can be major stumbling blocks. Accenture stresses that project management is not just about ticking boxes but navigating the intricate web of relationships within any team. The majority of projects demand collective effort, which is why the attention to detail of the Project Manager (PM) becomes indispensable. Regular team catch-ups, daily status checks, constantly updating of the project plan, and leveraging powerful Project Management tools like MS Projects, even for minor tasks, are pivotal. It’s not just about a checklist but visualizing the entire scope, thinking holistically, and always keeping an eye on the end goal. But let’s face it, challenges are inevitable – things will go wrong. Therefore, managing crisis becomes a quintessential trait of a successful PM. Who by the way is also expected to be mindful of the implications of each decision. It’s a realm where boldness, confidence, and the capacity to handle projects with expansive implications are tested. Modern technology, with all its wonders, can certainly streamline projects. Yet, its integration isn’t entirely devoid of risks and challenges. For instance, legacy systems like spreadsheets, despite their familiarity, carry significant risks concerning speed, accuracy, and more. Therefore, when embarking on grand enterprise initiatives like the launch of a new product or system implementation, the essence of precision and comprehensive planning cannot be overstated. As history has shown, the difference between successes like Apple’s iPhone and failures like Google Glass lies in the intricate balance of timing, preparation, and execution.
It is therefore evident that determining when to invest a company’s limited resources into a project is crucial from a strategic standpoint. However, we have yet to see a management blueprint to guide executives or individuals in discerning that opportune moment. While storybooks and fiction can tempt you to rely on a magic 8-ball to decide your fortune, the fortune of your project lies in careful planning and execution.
Before You Start Your CPQ Implementation
For Technology Service Providers and Managed Service Providers, implementing new systems like CPQ is more than just shaking a “magic 8-ball” and hoping for the best. While the magic 8-ball might offer a playful decision-making experience, a CPQ implementation requires foresight, planning, and strategy.
CPQ tools can bring about transformative efficiency and automation to sales processes, but they can also become a Pandora’s box if not approached correctly.
Inspired by a Harvard Business Review (HBR) article that outlines the key questions to ask before starting a big project, we’ve adapted these insights for a CPQ implementation in the technology and managed services sector.
1. What exactly is your goal?
Before we seek answers from our metaphorical “magic 8-ball”, let’s define clear objectives. Think specifics like “Decrease quote turnaround time by 30%” or “Increase sales quote accuracy to 98%” rather than broad ambitions.
“It is critical to define the purpose and ensure that owners and stakeholders are supportive. Examples of such purpose can be seen in the Apollo program, which had the clear goal of landing a man on the moon and returning him safely to Earth by the end of the 1960s.” – McKinsey
2. How will you handle change management?
Implementing CPQ is not just about technology; it’s about people. Are your people ready? Sales, IT, management, and even product teams need to be onboard. Ensure roles are defined, training is outlined, and everyone knows the game plan. It is likely that at first, people who have for ages been using dated tools like spreadsheets will show aversion to the idea. With the right motivation and training, it is imperative to acknowledge that unlearning legacy practices and relearning can really drive efficiency and innovation.
3. Have you assessed your current systems and processes?
Remember, our “magic 8-ball” can’t tell us our internal challenges. Map out your existing workflows, understand where the bottlenecks are, which parts are error-prone, and tailor your CPQ needs around these insights.
4. What’s your data strategy?
The efficacy of a CPQ system largely hinges on the data that powers it. A Configure, Price, Quote process must have accurate, current, and easily accessible data to function optimally. If not addressed diligently, poor data strategy can lead to costly mistakes, inefficiencies, and even legal consequences.
CPQ thrives on data; pay particular attention to:
- Data cleanliness and structure.
- Regular data update strategies.
- Protocols for sensitive customer data, especially with regulations like GDPR in play.
5. How will you measure success?
The “magic 8-ball” might cheekily say, “Ask again later,” but you should have KPIs set from the start. Monitor metrics such as quote turnaround time, quote accuracy, sales conversion rates, and user adoption.
Which partner will you choose?
Choosing a CPQ vendor isn’t something to leave to our playful 8-ball. Selecting the right CPQ vendor is as crucial as implementing CPQ itself. Beyond just features and pricing, you’ll want to consider the vendor’s reputation in the industry, their track record with businesses of your size and complexity, and their post-implementation support capabilities. Equally important is assessing how well the vendor understands your sector’s nuances and challenges. Remember, a CPQ system is not just a tool but a long-term partnership. Choose a vendor that aligns with your business goals, understands your challenges, and is committed to growing with you.
In the rapidly evolving tech ecosystem, precision and adaptability are essential. For Technology Service Providers and Managed Service Providers, the fusion of CPQ systems with CRM holds the key to enhanced operational efficiency. This powerful combination not only refines the sales journey but also maximizes post-sales revenue potential. Ultimately, a well-integrated CPQ system, synergized with CRM, stands as a cornerstone for sustainable growth and innovation in the tech sector.
If you’re ready to embrace the future of tech and elevate your service offerings, reach out to us today and let’s pioneer the next phase of your growth journey together.
