Transitioning to a new system brings challenges galore

However, it is important for the management to pay close attention to the selection of the right system, which is one of the critical parts of this change process.
Here are some aspects that can be considered in the decision-making process:
lSuitability: The new system should match the company’s requirements in terms of the nature of the business, facilitating the long-term business growth, technical support capability, user friendliness and investment. Typically, such change requires both financial and non-financial resources in the implementation process.
lReliability: Generally the selection process for the new system would start with a presentation from potential vendors. This will then be followed by a question and answer session for the company to understand the product’s capabilities and see if there are any discrepancies that need to be fixed, adjusted or modified. It is necessary that the customer gains confidence in the product’s reliability through successful site references and reviews from other users.
lCost effectiveness: With the high investment cost, many companies need to choose a system that can meet budget limits and at the same time deliver expected results. Cost-benefit analysis needs to be applied in order to support the decision-making. Considerable study time may be inevitable in obtaining details regarding all associated costs, such as user licence fee, maintenance fee, hardware cost, implementation cost and so on.
lLegal compliance: In case the new system is to be installed to meet related laws and regulation requirements, it is important to ensure that there is proven evidence to support the compliance. One obvious example is a system that complies with the new tax system such as VAT.
One important pitfall in the decision-making process to select a proper new system is the effect of group thinking. Some companies may set up a committee to source, evaluate and propose the right system. However, unless committee members are independent and assertive enough, it is possible that the majority of the group may be led to a wrong decision. In order to avoid this possible problem, being open and listening to key users more can be an approach to be considered. This could take more time before a conclusion can be reached, but it is worth considering. Well-known and expensive software may not turn out to be the right choice in many cases. After the system-selection process is finalised, the next important step is the implementation. Many users have encountered a hard time during the implementation phase due to the following factors:
lLimited manpower: During the training and transitional process, existing users have to continue with routine work under the existing system and at the same time spend a significant amount of time with the new system. This can cause stress and tension to the employees and, in the worst case, can result in a high turnover.
lManagement support: Users need support from everyone concerned, especially the company’s management team. Some decisions on policies and procedures need to be made as planned. Otherwise the entire plan can get stuck. Certain levels of flexibility at work should be considered as necessary.
lCommunication effectiveness: This is a crucial factor for the success of a system-change project. Some projects require highly technical and professional personnel to successfully provide training to users. Moreover, effective communication outside the classroom is required to promote the morale of users to cope with changes.
Since Asean Economic Community is set to kick off by the end of this year, a cross-cultural system change can be a new challenge for many Thai companies, especially with business expansion or mergers and acquisitions involving other countries.
It is good to be prepared for these changes by learning from past experiences, but challenges to success overseas should not be underestimated at all.
 
Dr Yanyong Thammatucharee is the head of International Finance and Operation at the Central Marketing Group and can be reached at |[email protected].