Selection of a software product and vendor has never been a straightforward process. Software solutions have to be very carefully assessed as a poor decision can place an entire organisation at a real disadvantage. The team leader responsible for software selection needs to have an excellent understanding of the business justification. They must be able to lead the early changes in the organisation, to obtain essential buy-in, and they must ensure that all stakeholders buy in to the decision-making process.
It is within these industry forums that best manufacturing practices are often discussed between companies.
Gavin Halse, MD, ApplyIT
An important point, often overlooked, is that after having selected a software system you could be granted membership of a vibrant industry community. It is within these industry forums that best manufacturing practices are often discussed between companies. While this may not be entirely good news for companies trying to squeeze a small element of competitive advantage out of their IT systems, it is certainly bad news for those who are not part of the "club".
Experienced people can through participation in these forums quickly gather clues around what works in similar companies, and what does not. By openly sharing learning points and experience, companies can optimise their own use of the system and avoid costly mistakes. Participating companies can reciprocate the value they receive by presenting their own learning experiences. This benchmarking opportunity can prove invaluable to any manufacturing company which may be questioning whether its IT is in step with the industry as a whole.
To a software vendor, formation and active promotion of these user communities provides a number of advantages. Vendors can get an inside track on the thinking in their customer base. It becomes possible to measure the "temperature" of customers, which gives the vendor an opportunity to respond proactively. Vendors can frequently address common concerns from their customers at these forums. The forums also provide the vendor a marketing platform for promoting future software releases.
As with everything, however, you need to discern the quality of the user forums very carefully. With the enormous amount of activity in the IT market, it is possible to attend a hype-filled conference every week, and the hard-sell tactics of those marketing these events will encourage you to do so. Events characterised by glamour, free T-shirts and elaborate entertainment frequently add little real value and are very different from closed communities which meet quietly to progress their specific objectives.
Many of these specialised communities and networks operate at an international level, where global issues in an industry segment can be addressed very effectively.
In search of kinship
What then characterises an effective software community? I would argue that it focuses on strategic issues relating to specific software verticals. The culture of the group encourages open presentation of case studies and experiences. The community is actively supported by the software vendor (and that also means funds and sponsorship), and the members are invited to join by virtue of the contribution they can and do make. There is a balance of power between customers and the vendor, which results in influence on allocation of the vendor`s R&D resources.
Correctly constituted, these forums can have enormous strategic influence in the industry. In manufacturing, for example, common elements such as a total supply chain strategy can be evolved and participants can agree on a common approach to enhance the competitiveness of their extended enterprises.
Project experiences, both good and bad, can be openly shared and the industry as a whole can enhance the effectiveness of its IT solutions.
Manufacturing companies in a particular region which face common issues with common logistic suppliers, utility providers and government departments can address these and debate issues between like-minded companies. The combined strength of participants can be brought to bear on a common problem if necessary.
This open sharing of best practices flattens the playing field between competing companies, and can be partly to blame for a lack of diversity and the wholesale commoditisation of products. Companies with disproportionately high levels of innovation and research capabilities may elect to act independently and innovate alone to stay ahead of others. However, no manufacturing company can realistically believe that it is unable to learn and benefit from its industry peers, particularly when it comes to IT systems.
The risk for manufacturing companies is that selecting the wrong software vendor, for whatever reason, can lock you out of a strategically important industry community. As a result, you may find your company out on a limb and out of touch with best operating practices. For this reason, when selecting a vendor, I would argue that it is very important to rate the user forums relevant to this vendor in your own industry as an important decision criterion. Some would argue further that this vertical focus is the only important element to consider when selecting a software vendor.
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