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What do all retailers have in common? They strive to provide the right product at the right time to the right location. The most difficult challenge retail software vendors face is how to provide an all-inclusive "out-of-the-box" solution that satisfies the unique requirements for a wide spectrum of retail organizations. The challenge is even greater for the retailer. The day of the custom "homegrown" merchandise system is gone. This raises the primary question every retail IT executive faces when making package selection decisions. Do I change my business processes to fit the software solution or change the software solution to fit my business processes? Click Here.What do all retailers have in common? The answer is simple. They strive to provide the right product at the right time to the right location. That's where it ends. The biggest challenge retail software vendors face is how to provide an all-inclusive "out-of-the-box" solution that satisfies the unique requirements for a wide-spectrum of retail organizations. The challenge is even greater for the retailer. What package will best suit the needs of the organization right off the shelf? The day of the custom "homegrown" merchandise system has come and gone, and this raises the primary question every retail IT executive faces when making package selection decisions. Do I change my business processes to fit the software solution, or change the software solution to fit my business processes? Intelligently Modified Software Implementations The vendor package selection process should determine which software package has the least amount of functional gaps. Functionality gaps are inevitable. In some cases, an "out-of-the-box" software solution is just not a viable solution for a retailer's business and the decision to build an "in-house" solution results from this. Sometimes these critical functional gaps are found after the software package selection process and the retailer has two options: (1) Postpone the implementation process, or (2) modify the code to satisfy the business requirements. Modification to a software vendor's package is a viable solution only when the retailer has determined that the benefits outweigh the costs. In some cases, a single critical functional gap identified in the software can drive this decision. In other cases, depending on the severity, the gap in functionality identified by the retailer finds its way into future software version releases. The question is whether the retailer is patient enough, or confident enough that this will happen. Postponing the implementation process is a costly decision, and modification becomes a necessary evil. Vendor contracts have been signed, hardware purchased, the consultants are onsite and management has an expectation for IT to deliver. The result - proceed with modification to satisfy the business requirements. As long as the retailer is diligent in deciding what should be modified based on the severity of the gap, there are realized benefits to modification. The benefits to intelligently modifying an "out-of-the-box" solution include:
Which Decision is Best? So which is better? It's a case-by-case decision. If the retailer's business model is not complicated and has the flexibility to mold its business around the functionality of the software package, then "out-of-the-box" is the right decision. In addition, if the retailers IT budget is small, then the costs involved in staffing the in-house resources required to support a modified package may not be feasible. Leave it to the software vendor to support the software. Larger retailers with more complicate business practices tend to be good contenders for modification. They tend to have the capital resources and IT head count necessary to manage a modified software package. Typically, these retailers manage their business in such a unique way that modification is the only option to run their business on the new software solution. In some instances, the retailer may have enough influence on the software vendor to incorporate the functional gaps into the base code without the need for modification. Yet, this is not always the case and when the retailer's competitive advantage is impacted, modification is essential. Often the first step in the process is to conduct a more detailed cost-benefit analysis to assess the organizational impact. Once it is determined that the vendor software requires modification, the retailer should be diligent in conducting discovery sessions to identify all functional gaps, distinguish the necessary modifications from the "nice to haves", prioritize them and develop a strategic plan to implement. About RPE RPE is a leading consulting services provider exclusively focused on the challenging needs of the retail industry. RPE provides strategic consulting services, systems management, implementation, integration, modification and system upgrades for retailers worldwide. With a time-tested and proven record in retail, RPE delivers services on time and on budget. Areas of expertise: Manhattan Associates' Integrated Planning SolutionsT, Integrated Logistics SolutionsT and Warehouse Management solution; Microsoft RMS; Island Pacific; and the JDA® ASP, PMM® and MMS® applications, E3®, Arthur® and Intactix®. For more information, visit http://www.rpesolutions.com.
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