Stephen Smith's Blog

All things Sage ERP…

On Customer Adoption

with 3 comments


The Problem

Traditionally with ERP systems, a new version is released every 18 months or so. Typically customers will only upgrade every few versions for a number of reasons discussed below. This leads to a major problem, namely if a customer requests a new feature and we jump on it, then it still could be four years before they see this feature. How this usually works is shown in the following timeline.

In an agile on-line world, this seems like rather a slow process to provide value to customers. Most Sage products have an on-line suggestion web site, such as https://www11.v1ideas.com/SageERPAccpac/Accpac for Sage 300 ERP. However customers tend to give up on making suggestions to these once they enter a number of suggestions and don’t see any movement in the next few months. As more and more people are part of the MTV Generation (or later) then instant gratification becomes the expectation.

Traditionally this is all part of a fairly large and involved Product Development Life Cycle. Product Managers spend their time talking to customers and partners as well as evaluating various industry trends to come up with a list of features for the next version. Usually a number of themes are developed and implemented as major new features. R&D then takes as many such themes and features that they think this can develop in 18 months. If all goes well, these are implemented, extensive testing is performed and an updated version of the product ships after these 18 months. Then if Product Management has done their job properly and R&D has faithfully implemented what was laid out, then customers should be fairly happy with the new version.

Of course things aren’t quite that rigid anymore. Most development groups (including Sage ERP) have adopted the Agile Software Development Lifecycle where the development team is implementing features in small batches taken from a product backlog. The product backlog is in priority order so the higher priority features are implemented first. A side effect of this is that for lower priority items in the backlog, Product Management can swap these out with other higher priority features as business needs or understanding changes. This then leads to greater flexibility and does allow some newer customer suggestions to make it into a product sooner. I blogged on some aspects of this here and here.

Often we are tasked with the goal of shortening our release cycles; say from 18 months to 12 months or even 9 months. However we get a lot of resistance from customers and partners on this. The main reason is that traditionally upgrades are fairly costly and time consuming activities that can often be quite disruptive to a business. As a result customers typically don’t want to upgrade more than every three years, so there is no increase in customer value by providing more frequent releases. Even then the main reason customer’s site that they upgrade is to stay in support, since we only support the two most recent versions or to stay compatible with upgrades from other vendors, notably Microsoft. If you need to know you work well on Windows 7, then you need a more recent version of your products. A large part of this problem has been caused by us software vendors, when presented with a choice to add a new feature to a release or to make upgrading easier, we consistently choose to add the new feature and leave any difficulty with upgrading to the Business Partners to deal with; who, of course, pass this cost on to our customers. Right now 18 months works well because by supporting two versions, customers only need to upgrade every 3 years.

So out of this we have two significant problems to address:

  1. Making upgrades easier so it isn’t a huge inconvenience and cost to upgrade.
  2. Make the features and functionality we add to our products more compelling so customers cite these as the reason for upgrading and not just keeping up with Microsoft compatibility problems.

Frictionless Upgrades

To address the first point, we’ve been working hard to make the upgrade process easier. This is Sage’s Frictionless Upgrade initiative. We’ve just begun on this journey, but in a number of products we are already seeing results. Such as in Sage 300 ERP we’ve combined all the separate module installations into one master product installations, allow you to activate multiple applications to the new version in one go and to minimize database changes so Crystal Reports and Macros don’t need modifications.

Going Online with services like www.accpaconline.com can help, since now you don’t need to install the software yourself, but you still have the work of making sure custom reports still work and training staff on any changes to their workflow. Generally the process of upgrading can be done well or badly whether you are online or on-premise. Certainly we’ve seen cases where overnight changes to web sites like Facebook have been very disruptive.

Many products such as Windows or Apple iTunes have an auto-update feature, so even though these are on-premise installed on the local computer type applications, they can still be upgraded frequently with little fuss. Expect to see this sort of functionality come to more and more business applications allowing the software to be upgraded frictionlessly without requiring a major database conversion or requiring changes to customizations.

Making Features Compelling

The intent with all the customer visits, customer interviews and other research that Product Management performs is that the features we add to the product are compelling either to existing users or to attract new users. A lot of work goes into researching and collecting all the data that goes into this decision making. Generally this yields better results than being driven by technology trends or by what competitors are doing; however, we tend to not being seeing the results we would like. What is missing?

With the scientific method, like what you see in Physics, Chemistry or Biology, people come up with theories, but these aren’t really believed until they are backed by experimental evidence. In software development we tend to do a lot of work doing research and creating theories and spend a lot of time discussing these theories with customers, partners and analysts. However we don’t take the next step and scientifically test these theories in real customer situations.

We tend to rely on doing studies on customers using prototypes or mockups. But when customers aren’t in their real work environment, doing real work, the results tend to be suspect. Is the customer just telling you they like your new feature to make you feel good, even though they will probably never use it? Are the questions being asked at interviews slanted to get the answers the researcher wants?

I recently read “The Lean Startup” by Eric Ries. This book, among other things, heavily recommends real scientific experiments with real customers in their real environment. No more separate studies with proof of concepts or mock ups. In a way we are doing this now. The only problem is that we don’t know the result until after four years and then it’s very hard to remove something that really didn’t work.

So how do we perform these experiments on real users in their real workplaces doing real work? Sure it’s easy for Facebook to try a new feature in say one town to see what the reaction is, but here we are talking about real business software that people rely on to run their businesses.

The real trick to this is to keep features small and only try small changes at a time. This is often referred to as a Minimum Viable Product or MVP. Only the absolute minimum functionality to do the job is produced. Any additional functionality is only developed (and tested) due to customer demand. This tends to greatly reduce complexity and unnecessary bells and whistles that we see in so much software. This then allows features to be developed and tested quicker. In manufacturing this is referred to as keeping batch size small.

This requires a great deal of good instrumentation in the product, so we know if a feature is being used and if it is helping (are users really more productive entering invoices?). Creating a full release with all the changes from the work produced by a large team over a year is a major undertaking. But adding small changes that have been fully QA’ed is fairly easy. In fact we already do this with hotfixes. In a way each hotfix is an experiment as to whether we have fixed a defect (hopefully mostly we have). So why are small new features any different than hotfixes?

You might argue that SaaS vendors can do this easier, since they can introduced the change for just a few customers by routing them to a different application server. However with auto-update we could do the same for on-premise customers. Give them the new feature and then based on the results, if they are good, roll it out to all customers, but if they are bad, then roll it back for anyone that received it.

These techniques have produced great results in a number of well documented cases, but will they be accepted for business software? I think right now there will be a fair bit of resistance to these sort of practices, but I think it is really a PR exercise to prove to customers that by participating in these sort of experiments, that they will get the features they are asking for sooner and that the new features they receive will be far more valuable. One of the main advantages of these techniques is reducing waste, by detecting things that won’t work quickly and discarding them quickly. This way some really dumb idea can’t make its way all the way through development using all those resources, to just annoy users in the end. Chances are this will start with new connected services or new on-line features, but I think eventually this could become more mainstream for even large ERP and CRM systems.

Summary

New techniques are being developed to develop customer value quickly and to get it into customer’s hands much faster than we have traditionally. However some of these techniques like experimenting on customers running live systems are going to take a bit of good PR to prove their value to get the necessary participation. If this all sounds crazy, give “The Lean Startup” a read, it paints a fairly compelling picture.

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Written by smist08

January 1, 2012 at 9:49 pm

3 Responses

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  1. In the old days (1990s) when I was involved with the ACCPAC ecosystem, changes to the software could be made by a third party within weeks if the customer was willing to pay for custom software development. We would acquire (license) the source code, make changes, test those changes, then ship them to the customer.

    Changes to the source code were problematic when it came time to upgrade but the process was timely and effective. And often the changes became products that made it cost effective for other customers of the same functionality because the development cost was spread more widely.

    Are there deep hooks in the current ACCPAC software where a third party can make meaningful changes without requiring access to the source code?

    Don Barthel

    January 6, 2012 at 1:04 am

  2. We’ve never licensed the source code for the Windows version of Accpac. We’ve always relied on the APIs built into the product at all the various levels. Some are easier such as controlling UIs as ActiveX objects and some are harder such as sub-classing Views. As a result an amazing number of ISV products now make up the Accpac eco-system with some very deep integrations.

    smist08

    January 6, 2012 at 4:10 pm

  3. [...] The programmer checking in code is the beginning of the continuous deployment process. If they have been successful in coding and testing a useful feature for your customers, then you would like this to be available to your customers in a very short order. I blogged on the desirability of doing this here. [...]


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