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    Document Summary

    Top Ten Risks to a Configuration Project and How to Avoid Themby Access Commerce

    Published on: November 01, 2005

    Type of content: Vendor White Paper

    Format: Adobe Acrobat (.pdf)

    Length: 18 Pages

    Price: Free

    Overview:

    Implementing new configuration software and processes is similar in several

    respects to implementing other information technology (IT) based projects, suchas enterprise resource planning (ERP) or product lifecycle management (PLM)systems. A few of these similarities include the strategic nature of the project;its broad scope - encompassing the extended enterprise of customers and

    suppliers; the extensive cultural implications; and the necessity for formal

    change management methods.

    Nevertheless, in developing a feasible plan to implement configuration softwareand processes, there are some significant differences to consider. For instance,

    ERP / PLM product definition capabilities are limited in their flexibility to createhighly configurable product representations for use by customers to create

    unique products. This is because those systems focus on engineering andmanufacturing versions of product structures. Typically, their current product

    structuring methods are grossly inadequate to meet sales and marketingrequirements for unique and accurate configurations - developed in a timely and

    cost effective manner.

    By creatively using configurator software, project teams now will have thecapabilities and flexibility to define product options and variations in any way

    deemed necessary - for an effective customer-facing Lead-to-Order (LTO)process. (3) The implication is clear: To become more customer oriented by

    offering highly configurable products, a company will need to dramatically shift

    its perspective on how its products are defined and presented to themarketplace.

    As with most IT-based system projects, to gain the considerable rewards mayinvite numerous risks. Thus, it takes prudent management to recognize these

    risks and to develop viable actions to avoid or to mitigate them - by learning

    from and taking advantage of the successful experience of others.

    Purpose of this Executive Guide

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    Overview Continued:

    The purpose of this Executive Guide is to help companies gain the intendedbenefits from implementing a configurability strategy, by:

    - Identifying the top ten risks to a successful product configuration

    implementation project, and- Describing numerous, proven actions to avoid or to mitigate them.

    Although this guide presents the indispensable actions to avoid these risks in a

    general sequence, a different sequence and/or emphasis may be appropriate forany individual company situation.

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    Top Ten Risks to a Configuration Project

    and How to Avoid Them

    Execut i ve Gu ide

    Making

    ComplexSelling

    Simple

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    Contents

    Preface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

    Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

    Starting on the Right Track . . . . . . . . . . . . . . . . . . . . . . . . . . 3

    Developing Effective Configurable Product Models. . . . . . . . 6

    Staying on the Right Track . . . . . . . . . . . . . . . . . . . . . . . . . . 12

    Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

    The Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

    Notes and References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

    About Access Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . 15

    Top Ten Risks

    Copyright 2005 - Access Commerce - All rights reserved.

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    Preface

    Companies producing and selling complex and configured products can achieve a

    major competitive edge by successfully implementing product configurator software

    as the core element of a configurability strategy - "toprovide more product

    variations using less resources." (1)

    Some companies, unfortunately, have painfully experienced the risks of

    implementing new software and processes, though eventually gaining benefits.

    Other companies may be overly cautious. They can be hesitant to undertake

    "another new initiative," even when it is essential to compete in today's demanding

    environment.

    The promised benefits from implementing product configuration software are many

    and may seem too good to be true. However, companies that have successfullyimplemented a configuration project confirm its many rewards. Surveys by industry

    research firms further validate these claims. (2)

    Purpose of this Executive Guide

    The purpose of this Executive Guide is to help companies gain the intended benefits

    from implementing a configurability strategy, by:

    Identifying the top ten risks to a successful product configuration

    implementation project, and

    Describing numerous, proven actions to avoid or to mitigate them.

    Although this guide presents the indispensable actions to avoid these risks in a

    general sequence, a different sequence and/or emphasis may be appropriate for

    any individual company situation.

    1

    Top Ten Risks

    Copyright 2005 - Access Commerce - All rights reserved.

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    Introduction

    Implementing new configuration software and processes is similar in several

    respects to implementing other information technology (IT) based projects, such as

    enterprise resource planning (ERP) or product lifecycle management (PLM) systems.

    A few of these similarities include the strategic nature of the project; its broad

    scope - encompassing the extended enterprise of customers and suppliers; the

    extensive cultural implications; and the necessity for formal change management

    methods.

    Nevertheless, in developing a feasible plan to implement configuration software and

    processes, there are some significant differences to consider. For instance,

    ERP / PLM product definition capabilities are limited in their flexibility to create highly

    configurable product representations for use by customers to create unique

    products. This is because those systems focus on engineering and manufacturingversions of product structures. Typically, their current product structuring methods

    are grossly inadequate to meet sales and marketing requirements for unique and

    accurate configurations - developed in a timely and cost effective manner.

    By creatively using configurator software, project teams now will have the

    capabilities and flexibility to define product options and variations in any way

    deemed necessary - for an effective customer-facing Lead-to-Order (LTO)

    process. (3) The implication is clear: To become more customer oriented by offering

    highly configurable products, a company will need to dramatically shift its

    perspective on how its products are defined and presented to the marketplace.

    As with most IT-based system projects, to gain the considerable rewards may invite

    numerous risks. Thus, it takes prudent management to recognize these risks and to

    develop viable actions to avoid or to mitigate them - by learning from and taking

    advantage of the successful experience of others.

    2

    Top Ten Risks

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    Starting on the Right Track

    Risk Number 1: Not Managing the Implementation as a

    Strategic Project

    If the company does not address this risk directly in the first stages, the result could

    be complete project failure - after spending the implementation budget fruitlessly.

    Wide industry experience has clearly demonstrated that the most common cause of

    this risk is because the organization does not fully understand the strategic nature

    and value of the proposed configuration project.

    Strategic, in this sense, means a project at the highest level of planning and

    execution, fully endorsed and supported by top management to catalyze major

    improvements in the company's competitive posture.

    Develop a solid business case with a Return on

    Investment (ROI) analysis to gain management's

    initial commitment; sustain it by quickly showing

    results and keeping management informed of

    ongoing progress and challenges.

    A complete ROI analysis has proven essential to gain management commitment. It

    should identify tangible objectives and benefits, one-time implementation costs and

    all ongoing costs of IT support.

    First, as planning assumptions for developing the benefits side of the ROI equation,

    the company's strategic vision may need to be defined or clarified; for instance, will

    the company:

    Target new market sectors?

    Initiate new sales channels and processes?

    Some project teams might contend that intangible benefits alone offer sufficient

    justification to undertake a configuration project. For management, with an ROI

    focus, intangible benefits lack the power to sustain commitment over an extended

    period. For the users, however, the soft benefits can be a powerful motivator; for

    example, engineers may be very frustrated with the time consuming problems of

    developing one-time bills of material (BOMs) that dilute valuable engineering time for

    innovative product development. (2)

    Once the project team gains management commitment, the attitude might be "thank

    heavens, we have management's support, now let's get on with the real job."

    Nurturing and retaining management commitment is a real job and will be a

    continuing challenge. It must be a top priority of the project team to accomplish this

    by using formal project management techniques. These include: consistent status

    reporting, means to identify and resolve outstanding project issues, and a

    comprehensive communications approach. Project management software can only

    provide a partial solution.

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    Copyright 2005 - Access Commerce - All rights reserved.

    The Spectrum of

    ToOrder Products

    Pick-to-Order (PTO) -productsusually shipped from

    stock inventory, for example,

    catalog items with optional

    accessories shipped with the

    catalog item.

    Assemble-to-Order (ATO) -products with standard sets of

    predefined features and options,

    from which unique product

    configurations are developed by

    the customer selecting specific

    features and options, for example,computers ordered over the

    Internet.

    Configure-to-Order (CTO) -products based on consultative

    dialogue with the customer,

    through Web interface, to address

    specific requirements. The

    products have been predesigned

    in computer-aided-design (CAD)

    models or parameterized

    documents, but not predefined

    with specific part numbers, for

    example, products with

    dimensional and spatial

    requirements, such as hydraulicactuators, and windows and

    doors.

    Engineer-to-Order (ETO) themost complex products that

    during configuring must interface

    with product development

    activities and tools, such as CAD

    software, design rules and other

    expert IT systems that can

    support development of

    configuration, pricing, and

    complete documentation over a

    typically iterative proposal cycle;

    for example, electrical distribution

    systems.

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    In addition, the project team must seriously consider the value of an early success,

    such as a "rapid prototype," to sustain enthusiasm for achieving the project's

    intended benefits. In a similar vein, another viable approach is the tactic of "self-funding" later stages of an implementation through the benefits gained from its initial

    successes.

    Risk Number 2: Not Having the "Right" People on the

    Project

    Without the "right" people on the project team, two major risks will almost certainly

    appear:

    The configurable product model will not meet the requirements of all

    organizational functions, including customers and suppliers

    The eventual users may not fully accept the newly developed configurableproduct models and the supporting processes

    The critical question is, therefore, who are the "right" people?

    Recognize the required makeup of the project

    team: multi-disciplined with in-depth product

    knowledgeable people - and led by the business

    and not by IT personnel.

    "Right" is . . . those product experts that are integral to the current day-to-day

    operations and who supposedly "cannot be spared." These people have the

    expertise and perspective to design product models that meet the needs of the

    enterprise. Clearly, providing personnel who "cannot be spared" depends on the

    strength of management's commitment to the configuration project.

    Furthermore, project leadership should be in the hands of those responsible for the

    future, on-going operation of the system - the sales, marketing and/or engineering

    personnel.

    To bring together and forge an effective project team, the qualifications and

    capabilities of the "right" prospective team members must be evaluated:

    Will they be willing participants?

    Will they be able to stay motivated in the face of occasional setbacks during

    the progress of the project?

    Will they resist being distracted by their "real" jobs?

    Can they function effectively at two different thought levels: conceptual and

    the detail of product modeling?

    Can they make decisions to facilitate conflict resolution?

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    Define the "right" tasks for the "right" people

    to accomplish the project's objectives.

    The project team's prime responsibilities are to develop a feasible project budget

    and schedule, paying special attention to the product modeling effort; and to design,

    test and implement configurable product models and related processes that meet

    the company's strategic vision. Moreover, acting as proactive change agents and

    maintaining open, two-way communications with the rest of the organization are

    particularly important with respect to the cultural risks, described next.

    Risk Number 3: Not Fully Understanding the Cultural Issues

    Experienced companies frequently refer to cultural risks as one of the foremost

    reasons for project failures. Technical reasons have rarely been the cause.

    The risks here are often subtle; like an iceberg. The obvious, formal policies andprocesses exist above the waterline. Beneath it may be the informal - attitudes,

    values, norms and fears - that endanger the project. For example, a company may

    have relied on a certain department and/or individual to know the subtleties of

    generating a customer's unique product configuration. Thus, these users may

    perceive a change in roles and responsibilities - using the new configurability

    processes - as a loss of status and power.

    Clearly identify the cultural issues that might

    endanger the project.

    A fundamental truism here is that management commitment, by itself, does not

    solve cultural resistance to accepting new processes. Accordingly, the project team

    cannot be passive, hoping that time will cure the resistance risks, or that momentum

    will sweep along any dissenters. It will take a proactive approach by the project

    team to gain user acceptance of new processes and responsibilities.

    In fact, the project team must relentlessly work to eliminate any potential

    organizational potholes and landmines that can undermine expected project

    benefits. Additional actions:

    Maintain constant contact with all affected users through both formal

    communication means and informal methods

    Conduct orientation and educational sessions, perhaps some conducted by

    outsiders who can bring fresh perspective to the effort

    Hire a change management consultant versed and experienced in cultural

    issues and how to resolve them

    Accept constructive conflict as a healthy situation and destructive conflict as

    unacceptable

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    Developing Effective Configurable Product Models

    Risk Number 4: Not Completing a Valid Product Model and

    Process Design

    An attitude of "let's get on with the solution, we all know the problems" can lead to

    undesirable risks in the early phases of the project. It is a natural posture: some

    project teams may be too eager to start playing with the new software before they

    initiate a purposeful design process. This is a dangerous attitude that could lead to

    false starts and costly project course corrections.

    If the project team does not have a clear focus on project objectives, other risks can

    surface during the remaining phases of the project:

    Incomplete model and process design

    Rework of processes required later in the project

    Heavy reliance on peoples memory and tribal knowledge

    Personnel turnover

    Politics gain the upper hand resulting in individual or functional needs

    becoming more important than the overall enterprise needs

    Identify the strengths and weaknesses of the

    Current State methods and processes related to

    the configurability strategy; then develop the

    desired Future State. (4)

    Current State review

    Selectivity is essential - too much documented detail is not necessary. The Current

    State of product variability, such as available options and combinations, however,

    does deserve a high degree of attention and detail. Understanding the current

    demographics will help to accurately estimate and to facilitate the product modeling

    effort, for instance, the number of features, the logic controlling the relationships,

    and the interoperability of options. Structured design methodologies that use visual

    aids are useful here. Moreover, the project team should recognize informal sources

    of product information, for example, Post-it notes and tribal knowledge.

    Additionally, the company must avoid the myth of "We have to make our current

    systems work first." Time is too valuable to waste trying to improve poor systems on

    a piecemeal basis. Companies can avoid this risk by developing and following thestrategic direction provided by a Future State design.

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    Future State design

    The goal of this action is to create a comprehensive design for product models and

    processes. To accomplish this:

    Identify the metrics of configurability success, for instance, the accuracy of

    configured quotes and orders

    Define the affected processes at a general objectives and policies level only;

    procedural detail can come later

    Clarify planning assumptions that influence or constrain the design to avoid

    the painful hindsight, "Oh, but I thought . . ."

    Make use of a comprehensive design methodology to avoid missteps

    Draw on best practice checklists as prompters

    Recognize factors that should be resolved before a configurator can be fully

    used, for example, an effective product change management process

    Share the evolving design continuously with management and users and

    solicit feedback before final approval

    This last noted action is one of the best-known tactics to determine if the design is

    complete - not stopping short at the 80% completion state.

    The overall design of the Future State processes and the user experience with them

    must be intuitive and perceived as a natural part of their interaction, not an added

    burden to be endured. In addition, there are critical considerations in developing

    valid product families and models, described in the next section.

    Risk Number 5: Not Attaining the "Right" Perspective when

    Designing Product Families and Models

    One of the key tasks awaiting the project team is to develop a fresh perspective on

    the definition of product families and models by taking advantage of the capabilities

    in the configurator software. Gaining perspective means to abstract or visualize new

    groupings of product families and models to achieve more effective configuring of

    complex, unique products. Often, though, Current State engineering and

    manufacturing product structures do not lend themselves to accurate and timely

    configuring of products in a revitalized LTO process.

    Failing to address the concepts of the "right" perspective may result in unusable

    configurable product models and these undesirable consequences - at two levels:

    1. Operational unduly complex, time consuming and costly on-going model

    revision and maintenance, and

    2. Strategic eroding the customers confidence, and even losing business, if the

    customers view the new product configuration and LTO process as unwieldy

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    Unfortunately, there is no "magic bullet" to absolutely avoid the risks - do not waste

    time searching for it. At best, the company must strive to mitigate them during the

    tasks, described next.

    Plan and carry out a comprehensive design

    process and conduct periodic reviews with users

    and top management - so that the results

    conform to the company's strategic vision.

    The goal is to achieve the "right" perspective in new product family definition - by

    balancing conflicting factors, including the usability of configurable product models

    versus flexibility and the cost of family and model maintenance. This goal also

    means that the following organizational functions must be wholehearted participants

    in the decision process: marketing and sales - to ensure usability of the configurable

    product models by customers in a revised LTO process; engineering - to signify

    what can be produced; and manufacturing - to indicate what is optimal to produce.

    Typically, a project team will carry out a whole series of interrelated tasks to reach

    the goal of the "right" perspective. In a general sequence:

    1. Understand the strategic vision regarding target markets and customer

    characteristics. Developing answers to some questions may catalyze a fresh

    definition of product families. Among them:

    What sector of the "To-Order" spectrum will the company tackle?

    To what degree are customers sophisticated and knowledgeable about what

    they need in a customized product?

    What will be most effective for customers using the configurator software:

    feature/option selection? - a needs analysis approach? - or combinations ofboth? - in a guided selling mode?

    What are the customers delivery expectations?

    2. Define and decide on the important factors in product family and model

    development, considering the customer level of product knowledge/expertise,

    product complexity and anticipated levels of maintenance; then set priorities and

    balance the trade-off decisions.

    3. Visualize and evaluate the possible new or revised product family groupings. The

    two extremes in product family definitions too few high-level product families or

    too many product families will both result in unnecessary maintenance time and

    cost.

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    4. Do not let product configuration exceptions rule. This can distort the design effort

    and be time consuming.

    5. Recognize that there will be an inflection point (where the value is still increasing,

    but at a reduced rate); for example, increasing flexibility in future model maintenance

    is a desirable capability. On the other hand, too much flexibility will complicate

    maintenance.

    6. Review the evolving perspectives and recommended choices of proposed new

    product families with users and top management to gain approval before expending

    additional design effort and incurring costs.

    7. Create new product families; prototype one or two to test for customer usability

    and maintenance considerations.

    The project team must accept the reality that attaining the "right" level of

    perspective for new product families and configuration processes is not a oncethrough process; expect some iteration of some or all of the above actions.

    Certainly, anticipate some rousing debates during this phase.

    Risk Number 6: Mis-estimating the Modeling Workload

    Product modeling will be a major part of the project budget and schedule. When

    developing the project plan, there are two undesirable possibilities to be avoided:

    underestimating or overestimating the modeling effort. Either can trigger common

    risks - detrimental to project success:

    Diluting management commitment due to loss of confidence in the project

    team

    Deteriorating team members commitment to the modeling effort

    Transferring team members - who cannot be spared - off the project

    Losing project momentum

    Underestimating the product modeling effort and subsequently requesting additional

    budget and time from the executive steering committee will directly lead to the

    aforementioned risks. Be aware of potential root causes, such as not understanding

    the process, or the presence of highly motivated, but overly optimistic, team

    members.

    Overestimating the product modeling effort also has additional downside.

    Management and users may react negatively to initial schedules that are perceived

    to take too much time before showing results. Here, root causes may include a lack

    of understanding, or poorly motivated, overly pessimistic team members who might

    be inclined to "pad" estimates for protection.

    Understand and evaluate the product complexity

    factors and the effort required to develop

    product models - on time and within budget

    limits.

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    Because only the project team - no others - will be accountable for the accuracy of

    the product modeling estimates, it is imperative they have the requisite

    understanding of product modeling before they commit to a schedule. There is nomagic Excel spreadsheet to develop the estimates. Thus, it will be a highly

    judgmental exercise demanding a high degree of attention to both product

    complexity and team member capabilities.

    Product Factors

    In the Current State review phase, the project team will have identified a number of

    product variability factors. These are statistical and qualitative descriptors defining

    the complexity of the products - that are needed to develop an accurate modeling

    estimate.

    A company's products may span the range of Assemble-to-Order (ATO), Configure-

    to-Order (CTO) and Engineering- to-Order (ETO). As a rule, the more complex the

    product, e.g., CTO and ETO, the greater the product modeling effort. Therefore, the

    following factors need to be carefully evaluated:

    Where do the products fall in the range of ATO, CTO and ETO?

    Number of product families?

    Number of characteristics per product family as engines in automobile

    models?

    Number of possible choices for each characteristic as engine horsepower

    selections?

    Number of parts needed to make a unique product configuration?

    What configuration relationships currently exist that will need to be accountedfor in the new product models: complex pricing strategies, sub- level

    configurable BOMs, integration with CAD software, and rules for dimensional

    and parametric calculations?

    People Factors

    At this time, a key question is . . . do the project team members have the requisite

    understanding of the product modeling effort to develop accurate estimates?

    Greater understanding of the future modeling effort should result from collaborating

    with the software vendor - with their experience - to leverage the project team's

    knowledge of the product. One distinct possibility is to co-develop a prototype

    product model with the software vendor. This approach also provides active

    software-specific training. However, the project team must retain the eventual, on-

    going modeling responsibilities that should not be defaulted to the software vendor.

    Now is also a good time to maintain active dialogue with experienced configurator

    implementers - in complex product companies with similar characteristics - to gain

    a better understanding of the scope and intensity of the product modeling effort.

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    Furthermore, it may be necessary to initiate appropriate actions to improve the

    project team's effectiveness, by reconfirming the project objectives and rationale;

    regenerating motivation with fresh management direction; and reaffirming roles andresponsibilities, such as the power to make decisions to resolve conflicts.

    Risk Number 7: Not Selecting the Appropriate Product

    Family to Start Product Modeling

    Most companies will have a choice of which product family to select for the initial

    product modeling effort. There are often two extremes to evaluate, simple or

    complex - each with attendant risks. Starting with a complex family that promises

    greater benefits may be tempting, because of the desire to gain the greatest

    immediate benefits with improved product configurability. Nevertheless, starting with

    a too complex product line may prove self-defeating. The project team may not

    have the experience level required for a successful outcome. An unfavorable,demoralizing result could cause a loss of confidence.

    There is an advantage to consider in starting with a simple product line: it shows

    results quickly. Conversely, the project team may not gain the requisite experience

    to later tackle the more difficult product lines.

    Consequently, neither extreme - too complex or too simple - is an appropriate tactic.

    Select the appropriate product family to model.

    Designating the appropriate product family to start the modeling effort is properly a

    top management decision. Accordingly, the project team must identify the selection

    criteria before choosing and submitting a recommendation to the steering

    committee. Not all decision criteria will be compatible, thus, forcing an intelligentchoice after considering:

    The substantial business impact, such as potential to increase market share,

    that will help to gain and sustain organizational momentum

    The degree of product complexity and the learning experience to be gained

    for the remaining modeling efforts

    The readiness of the users

    A prudent approach is to choose the first product family to model that gains

    significant business impact, yet is not too complex. Moreover, all users outside the

    project team should be able to fully understand the evolving configuration model.

    In addition, continuing success would maintain the confidence of the management

    steering committee, as well as the eventual users.

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    Risk Number 8: Inadequate Testing of the Configurable

    Product ModelOne of the worst possible risks is to have customers find errors in the product

    models as the models "go live." One cause of this risk could be lack of valid input

    from knowledgeable personnel during earlier phases of the project, resulting in an

    inadequate configurable product model. Superficial model testing may not identify

    faulty configurable logic.

    Preempt the risk with a comprehensive testing

    plan comprised of these elements:

    Develop comprehensive validation methods, based on structured input, to test

    all possible combinations of configuration logic and error messages

    Start testing early and do it often dont wait until the model is complete

    Establish acceptance (buyoff) criteria, for instance, the ability to handle all

    structured input created to test the model logic, to produce error messages,

    and to develop an accurate configuration

    Bring in prospective users from outside the project team to assist in early and

    continuous testing, such as those from sales, channel partners and selected

    customers

    Recheck the adequacy of product modeling training

    Avoiding the risks of inadequate testing exemplifies the integral relationship with

    previously identified actions, particularly assigning the "right" people to the project

    team.

    Staying on the Right Track

    Risk Number 9: Not Adequately Defining New Processes for

    Maintaining and Publishing of Models

    In complex product companies facing blistering competition, constant change is

    expected, usually at lightning speed, driven by customer demands. Without

    adequate processes for updating product models in a timely and efficient manner, a

    number of risks can surface:

    At an operational level - increasing maintenance costs and extended time toimplement new models leads to the highest level of risk, that is . . .

    At the strategic level - losing market opportunities, revenue and even

    customers. . . perhaps the most painful of all risks

    An underlying cause of this risk might be that the project team mistakenly views the

    next actions as those to tackle just before "going live" with the new product models.

    Worse yet is that the project team did not exercise the discipline to take the

    following actions in earlier planning phases.

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    Identify, define and test all processes associated

    with the timely revision of the product models

    well before "going live."

    In configuration management terms, the goal is to ensure the revision integrity of the

    product models. A recognized best practice is to conduct a continuous and

    comprehensive conference room pilot using the evolving product models to

    generate these mandatory outcomes:

    Identify all rules for change management of the product models

    Validate all interfaces to related systems, such as ERP and PLM

    Define/clarify all policies and responsibilities for the ongoing operation of the

    new processes

    Accomplish any final education and training requirements before the nextactivity

    Risk Number 10: Not Planning for User Acceptance of the

    New Product Configuration Processes

    Waiting until late in the implementation cycle to plan user acceptance will only

    exacerbate the risks, already cited above. Scrambling at the last minute in reaction

    to user sensitive problems may trigger even more resistance: fear of excessive work

    pressure and loss of control at the time of "going live." The possible rewards of the

    new processes may no longer appear adequate or satisfying.

    Work proactively to develop a user acceptance

    plan.

    The approach to avoid this risk starts at the time of gaining management

    commitment. While stated in this risk category, the project team must accomplish

    most of the following actions throughout earlier phases of the project:

    Establish an active communications methodology beginning as soon as

    management has authorized the project

    Create a sense of "ownership" of the configurable product models and the

    related new processes

    Provide a feedback mechanism to the project team for additional

    improvements

    Incorporate a mix of motivational methods, both positive (carrot), and as

    necessary, negative (stick)

    Essentially, the project team needs to execute a marketing strategy for creating

    enthusiastic user acceptance, not foot dragging resistance.

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    Conclusion

    For complex product companies immersed in the "To-Order" market, a configuration

    project is not an option - it is an absolute necessity to survive and thrive.

    Forward thinking companies do not tolerate excuses for inaction, as . . . "Oh, but we

    are not ready." This is because in today's environment of blistering competition,

    doing nothing is one of the greatest risks of all.

    Take purposeful, preemptive actions to avoid the potential risks to a configuration

    project - by catalyzing the next steps: review . . rate . . and tailor the actions

    outlined in this guide. Then, aggressively pursue them by closing any gaps between

    the company's current reality and the actions needed to be successful. This will help

    to ensure the maximum rewards from a configuration project - leading to major

    competitive advantages.

    The Author

    Richard W. Bourke is a principal consultant with extensive experience in systems

    planning and implementation. His clients have ranged from Fortune 100 companies

    to small manufacturing firms. For other publications, visit

    www.bourkeconsulting.com.

    Contributing Author

    Andrew Tubbs is the Vice President, Professional Services for Access Commerce in

    North America. He has more than 13 years experience implementing product

    configuration software solutions and has led more than 100 successful projects,

    including deployment of the first web-based configurator for the world's largest

    automotive OEM.

    Notes and References

    1. Access Commerce, "Configurability: A Competitive Advantage," 2005.

    www.access-commerce.com.

    2. AMR Research, "Configuration is the Heart of Customer Fulfillment for Complex

    Product Manufacturers," 2003.

    3. Access Commerce, "Optimizing the Lead-to-Order Process," 2004.

    4. The Lean community differentiates the two conditions of processes as Current

    State (sometimes known as "As-Is") and Future State ("To-Be").

    5. Access Commerce, Cameleon Model Designer methodology, 2000-2005.

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    About Access Commerce

    Access Commerce is the developer of Cameleon Advanced Selling and Product

    Configuration Solutions. Cameleon optimizes core selling activities by intelligently

    automating key business functions across sales channels: lead management,

    guided selling, product configuration, pricing optimization, quote and proposal

    generation, order management and manufacturing data generation.

    Access Commerce was founded in 1987 in Toulouse, France and today has more

    than 250 customers in 15 countries. The company is listed on the Euronext Stock

    Exchange (Euronext: 7424).

    For further information, email to [email protected] or contact us at:

    North American Headquarters

    1419 Lake Cook Road

    Deerfield, Illinois 60015

    (847) 236-9061

    European Headquarters

    Rue Galile BP 87270

    31672 LABEGE Cedex France

    +33 5 61 39 78 78

    www.access-commerce.com

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    www.accesscommerce.com

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