Consequences of a Failed ECM Implementation

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The Consequences of a Failed ECM
Implementation

WRITTEN BY
iDatix Corporation
idatix.com

Learn more about iDatix solutions, visit: www.iDatix.com

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ECM Implementation Failure
IT Projects are notorious for having low success Evaluating these causes, you will notice that none of
rates without proper Project Management. Some them actually deal with technology! The issues arise
of the best software products in the world have from the process of implementing the technology
failed to meet client’s expectations because the and the manner in which you enable users to
salesperson set unrealistic expectancies or the utilize the system. A proper ECM system must be
implementation time was shortened in order to developed in coordination with the intended user
meet a magic budget number. Only 32% of all audience.
projects succeeded with on time delivery, within
budget, and with required features and functions,
according to a 2009 study.1 While this number is not Only 32% of IT projects
all that surprising to experienced IT professionals,
a failure rate of that magnitude is astonishing
succeeded with on tine
to most executives -- and it should be. This is delivery, within budget, and
equivalent to a 68% failure rate, an unacceptable
with the required features and
percentage in almost all other aspects of business.
Could you imagine only a 32% success rate with functions.
car manufacturing, refrigerator operation, or worst
case- shuttle development?
Jim Johnson , Chairman
Standish Group
After being in the ECM industry for over 10 years,
and overseeing hundreds of implementations, we
have found that success is typically not based on
the technology. According to a study on aiim.org2, Proper project management for ECM
research has shown that the most common reasons implementation follows the same general principles
for ECM failures are due to: of standard project management. However, the
mixture of IT and process change creates a unique
yy Underestimating the impact on business work environment in which employees, managers,
processes and organizational structure and directors need the courage to first admit there
yy Improperly trained users are problems with their current process. When
we work with clients to determine their needs,
yy Project derailment by internal politics
technology is not even discussed until there is a full
yy No implementation of adequate governance understanding and buy-in concerning their current
processes process state.

1 Jim Johnson - Chairman, Standish Group’s CHAOS Summary 2009.
2 C3Associates – Presentation to AIIM International – 2009 – Top 10 Reasons
for Failure.


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In short, we cannot stress enough the importance While the monetary loss is a large enough setback
of not just selecting a vendor that delivers an in this situation, there are many other intangible
elegant software solution, but an organization concerns that also need to be considered:
that has the knowledge and ability to assist your yy Concept of why are we doing this again – it
company from the very first step. The evaluation of already failed once
a vendor’s personnel, experience, and technique
yy Cost of replacement solution itself (Doubling
are paramount to the overall success of an the cost of the total deployment)
implementation.
yy Cost of converting images from previous
Whether your company is in the process of system into new system
selecting a vendor through demos and/or yy Cost of reevaluation of your current process
evaluating RFP responses, ensure that you put the yy Cost of retraining your users on a new system
same amount of consideration into the product
yy Cost of convincing your users that a new
implementation process as the technology itself.
system will not fail like the previous one
But my ECM Implementation already failed,
These are just a sampling of some of the concerns
now what?
and costs associated with replacing an ECM system.
Unfortunately, as previously mentioned, this is not
all that uncommon. As a provider of document As a result of these failed ECM implementations,
management and workflow solutions, over 50% we have become experts at converting data
of our larger implementations involve some from other systems. The conversion process can
type of conversion from an inferior ECM system. become quite costly if the scope is not managed
Implementations are completely dependent properly. It is important that you spend the time to
upon the success of the technology, as well as understand what will be migrated and how data
the professional services integrating them. Often, will be validated post conversion. We have seen
compromises are made on both, resulting in conversions originally estimated at a couple weeks
insufficient technology requirements as well as a end up taking well over a couple months because
failure in implementing the process properly. of assumptions made by both the vendor and the
client. Often, initial implementation requirements
The challenge of purchasing a new ECM system were ignored or best practices omitted resulting
to replace an older system is generally twice as in corrupt and incomplete data that is not evident
difficult so avoid it all costs if you haven’t fallen until a detailed inspection is conducted or the
into this realm already. A little bit of research in the company faces a crisis.
proper areas will yield significant savings in the
long run.


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The conversion process is in one way a minor part Conclusion
of the overall migration to a new system – the
In summary, be sure that you are complete in
justification and trust to users is perhaps the most
product functionality, being careful to choose the
difficult part of the process. Many of the users
right vendor for your requirements and properly
have already seen failure once and therefore it
evaluating during the initial stages of planning.
can be a significant challenge to gain consensus
A skilled and experienced vendor with the right
on moving towards a new system. It takes great
software for your needs will understand your
project managers and implementation specialists
business process fully. From the initial stages,
to ensure this transition is as seamless as possible.
to properly implementing the procedure, to
The following is a simple chart that depicts the providing support-these are all integral pieces to
potential cost of having to replace an existing ECM your company’s success. Lacking in one means an
system for a larger organization. overall failure.

As you can see, by taking a lower cost solution with
less professional services and training, the total
cost of your original solution is now half a million
dollars. The client could have saved $260,000
by selecting a more specialized vendor. Often
times the ‘cheapest’ solution becomes the most
expensive. 3

Old System Costs New System Costs
Existing ECM System $200,000 New ECM System $200,000

Conversion from Old System $25,000
Professional Services3 $20,000 Professional Services $50,000
Training $5,000 Training $10,000
Total Costs $225,000 Total New System Cost $285,000
Overall Cost of Original Projected Solution $510,000

3 We have assumed the professional services were underbid and therefore
caused the project to fail.


Consequences of a Failed ECM Implementation

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