Microsoft Business Solutions- Axapta...replacement
of existing business management system
To protect the confidentiality of our client and their
customer, we have not detailed names
Sales situations invariably reveal the most interesting
set of circumstances some of which put you on the 'back
foot'. Imagine a scenario where a client is genuinely
interested in your solution, but his parent company
have said they will solve it for them but it's going
to take 4 or 5 years to complete in house. Does this
mean that the situation is impossible to win? No, -
but it will need a strong business case to cover spending
money in what is only a 'gap' period.
A Microsoft Business Solutions (MBS) reseller is trying
to sell Axapta?? to a clothing manufacturer to improve
their business processes. The customer currently uses
an AS400 based solution that is tailored specifically
to its needs by an in-house development team. The system
needs upgrading and their parent company is working
on a plan to install a company-wide replacement. However,
it is five years until the replacement system comes
on-line and the local office believes there could be
valid business reasons to install a new system now
- even if it is only a stop gap.
How does the sponsor go about persuading the board of
the parent company to do something now rather than
wait another five years? They feel it is worth doing
but even if the benefits of the Axapta?? solution were
clear, would they be sufficient to convince the board
that a stop-gap measure would make economic sense?
Areas of financial benefits such as reduced customer
lead time, batch processing of orders and over-night
credit card verification had been assumed. However,
when using Shark it became clear that the guesses were
not right for the customer???s business.
Shark correctly identified and quantified the real areas
in their business that Axapta?? would improve.
improved stock control
improving revenue from their customers
reduced transaction cost
Using Shark, a Business case for the client???s decision
makers was generated in front of the customer. This contained
all of these jointly sponsored areas of benefit and included
the appropriate ROI calculations of Payback, NPV and
IRR with full Discounted cash flows. This report was
used to supplement the technical proposal.
source : Shark Finesse
The economic benefits of the Axapta?? solution were shown
to financially justify the cost of the program and
reinforced the feelings of the sponsor. This was sufficient
to convince the board that the project should be investigated
thoroughly and taken to the next stage. The Shark ROI
tool had proved it made good business sense to invest
in a solution that was previously regarded as unnecessary.