Procurement Links

When ASP's Go Sour
eWeek
One of the most annoying aspects of the dot-com crash is the widespread failure of Application Service Providers (ASP's).  These Web-based services offer everything from recruiting and resume storage to hosted ERP systems.  And they are dropping like flies.  The problem is that customers make an investment in time, energy and money to make the relationship work, without doing the due diligence to make sure that their chosen ASP isn't going to go dark on them.  This article tells a few stories about painful experiences, but also gives some useful hints:

1.  If the ASP is public, pay lots of attention to their public filings.  Make sure they have adequate funding - and that they are making money, or soon will.

2.  If they're not public, ask the above questions of management during your meetings.  Get a D&B report.  Ask for audited financials.  If they don't have them or refuse to disclose them, find yourself another vendor.  Given the climate in this industry, attempting to get this information is a legitimate request.

3.  Watch for degradation in service and support.  This might indicate layoffs or simple corner-cutting to save desperately needed cash.

4.  When you enter into the agreement, know what the escape plan is.  What will you and the ASP do to smooth the transition to another service if this ASP should fail?  One way is to make sure your contract indicates that YOU own the data, not the ASP.  And ensure that you can retrieve that data at will.  In addition, build a buy-out plan into the contract so that you can buy the software the ASP is using, and maybe even the equipment.

5.  Avoid using ASP's for mission-critical tasks. The risk is even greater if you have the ASP provide a key service you need to keep your business running.

6.  Get to know the other customers.  You'll be able to share notes on problems, and you'll also be a resource for each other if the ASP does go down the tubes.  And if there aren't very many, or if they're abandoning ship, you have my permission to treat that as a very bad sign.

Know your DSL
zdnet.com
This is an overview of DSL and will do a good job of educating you about the way it works, how you connect to the phone company, and the various options that may be available.  If you're thinking about DSL for your home or company, this is a very useful article to read.

Thinking ASP?  Don't forget security!
Computerworld.com

This article illustrates one more thing to be concerned with if you outsource to an application service provider... security.  This article provides some detailed negotiation points and requirements for your agreement.  Make sure the ASP treats your data and applications as well or better than you would yourself.

Project bogs down San Mateo health agency
Computerworld
Here's another scary story for you to sink your teeth into.  After spending $12 million, processing is actually slower and they haven't met their goals.  Why?  First of all, IT and the rest of the organization weren't communicating well.  Second, they had set artificial deadlines which resulted in additional complications.  Third, the vendor had turnover problems with five project managers in 18 months.  How to solve these problems?  Better project management skills, executive commitment and staffing commitments from your vendor would help.  See, that wasn't hard.

Vendors Say the Darnedest Things
CNET 
This is an enjoyable, if too short, recap of some of the latest jargon spewing forth from the "new economy."  One of my favorite quotes was included in our tip of the week.  Another one is: "A recent product description that came into the CNET offices...described a 'revolutionary software architecture that...harnesses the untapped power of every desktop computer in the Internet to create an intuitive, immersive, and interactive environment.' Try saying that five times fast."  Maybe that should be a new test for gobbledygook.  Can you say the phrase out loud, and repeat it with a straight face?

Lipton Brisk Found Online Ad Firm Was Just Too Cool for Its Taste
Wall Street Journal
This longish article is a cautionary tale about being blinded by technological ability, but missing out on the real business knowledge.  The author tells a story of Lipton Brisk moving from their old-line ad agency to a dot com firm that had the technological edge.  But, according to Lipton Brisk, they didn't think strategically and didn't understand brand awareness.  They had the technology down, but just didn't get it - the business side, that is. Remember that the technological prowess can be hired or learned, but that the business fundamentals and relationships take a little longer.

Verio Outages Point Out Customer Need for Backup Plan
Computerworld
This article highlights the fact that you have to take responsibility for the continuity of your operations, even if you've outsourced them to an ASP, Web hosting company, or whatever.  Make sure they're making backups of your data and applications, and make sure they're responsible if something happens.  And be very wary of "uptime" claims.  The system may be "up" but not actually accomplishing anything.

Beware of ERP Consultants in CRM Clothing
CNET
This is a poorly written and jargon-laden article written by one of the big research firms and packaged by CNET.  For example, they use "go-to-market" twice and "holistic" four times in the article.  However, there is some really good advice to be gained if you wade through the piece. 

1.  As opposed to ERP implementations, CRM will require lots of other services.  You're integrating not only application software and technology, but brand management, sales compensation plans, media management, marketing strategy, and customer experience.  The technology gurus that helped with your ERP system probably don't truly "get" CRM.  Because of the variety of services required, plan on using more than one vendor for the project.

2.  You thought the change management for your ERP system was big.  Wait until you see CRM.  With ERP, you changed processes, but you basically did business the same way.  With CRM, you'll completely overhaul your entire business - at least the part that has to do with delivering product, marketing and selling.  So count on change management being big...really big.

3.  Beware of the advice of your consultants regarding software selection.  They may have a vested interest or bias in your using whatever software they recommend.  And if they suggest custom-built applications, be very wary.  CRM technology is moving so fast that the maintenance on a home-brewed package may be overwhelming.

How to pick an ecommerce consultant
CNET
While this article profiles some of the bigger ecommerce consulting firms, it also offers some specific tips on selecting the right one for your project.  The best idea is to take a look at their client list.  What types of projects do they excel at?  If you're a small retailer, and the firm does nothing but large B2B exchanges, you've probably got the wrong company sitting across the desk from you.  Also look at vendor relationships.  While they can be a negative if the consultant ignores better technologies, they can be a positive if the technology really is the best for your objective.  A close relationship with the right vendor will give you more assurance that your project will go more smoothly and will get finished much faster.

Steer Clear of ASPs for Mission-Critical Applications
Computerworld
The message is to be very careful when considering an ASP.  Look at financial stability, the talent and expertise of their staff, take a tour, etc.  Treat them as if you were buying them.  The danger is in relying on them for your custom-built or mission-critical systems; they could either massively screw up or go out of business...and then where will you be? 

Managing Mergers
Network World Fusion
Integrating IT infrastructures is not high in the minds of merger and acquisition-minded executives, but at some point in time, the technology staff is going to have to start worrying about putting the two acquired companies together.  This article starts out slowly, but finishes with some good ideas about making the IT integration piece of a merger work more smoothly. 

The overriding recommendation is to get IT involved as early as possible.  This gives the staff some warning and they can also provide guidance about the impact and cost savings that the merger will cause.  Management usually doesn't understand the integration issues very well and may miss things like highly customized ERP systems, differently organized infrastructures, the financial impact of outsourcing contracts, complications of consolidating data centers, etc. Involving IT early in the process facilitates better estimates and smoother transitions.

What is ERP?
Darwin Magazine
A very short article that succinctly describes the main benefit and attendant problems of ERP systems.  ERP systems integrate all of the business processes of the enterprise.  Since each department has been doing their own thing, integrating those independent systems into one enterprise-wide system can be hairy.  Costs can be monumental when you consider training, process re-engineering, documentation, code customization, etc.  Of course, the benefits can be pretty remarkable as well.

ERP Training Stinks
CIO Magazine
This magazine continues to impress me with its exceptional articles on the nuts and bolts of getting the most from your technology.  And this particular article is HIGHLY recommended.  It analyzes recent cases of spectacular and not-so-spectacular ERP failures.  The problem isn't the software.  In most cases it's the training.  But it's not the technical training on the systems.  The real, fundamental problem with ERP systems is that whatever training does occur tends to be on the technology, NOT on the business processes themselves.  Unfortunately, it's expensive and time-consuming to do this type of training, but it is the only meaningful way to educate your staff that there's a new way of doing things that completely changes and replaces old methods and cultures. 

In addition to a lack of the right kind of training, companies tend to let training be the first thing that suffers in a budget crunch.  And since training is usually left till late in the project when the budget crunches often occur...well, you get the picture.

There is much more valuable information in this article.  I encourage you, if you're involved in a large scale project, to read it carefully.

Big Risk for Small Fry
CIO
This is an excellent overview of contract negotiations for your ERP system.  Some points include: 

1.  Don't have the work start before the contract is in place.  You'll be paying at an exorbitant, hourly rate, you won't have the intellectual property rights settled, and you'll have no leverage in the negotiations.

2.  Don't overdo the price negotiations.  The vendor should get some profit.  If he goes too low on the initial price, he'll get it back somehow, probably in change orders or using lower-priced staff. 

3.  Speaking of change orders, check the references to make sure that the change orders were appropriate and reasonable.

4.  Holdbacks may be a good idea, but they may not provide sufficient leverage against larger companies.  If you have to enforce them, they will probably result in a lawsuit.

5.  Try for a contract that is specific enough to be enforceable, but flexible and equitable enough that both parties view it as a win-win.  Remember that you want an ERP system, not a contract that only a lawyer could be proud of.

6.  Require that both parties maintain some continuity of personnel, and that there be escalation procedures to deal with obstacles and difficult and obstructionist personnel.

7.  Consider monetary damages if objectives aren't met as well as bonuses if the goals are achieved.

8.  Acceptance of interim deliverables should be conditional on the functionality of the entire system.  Testing should be clearly defined, and the ability to call in third parties to assist with testing should be provided for.

9.  Finally, not related to the contract, but key to the success of the project, is to have all departments on board with the project.  ERP systems cut across departmental boundaries and will change processes.  This will cause wailing and gnashing of teeth.  Be prepared.

Human Error
CIO Magazine
This is an excellent article which reviews the need to address not only the technical aspects of your enterprise project, but the people issues as well.  There are several short stories about how the failure to get the employees and users on board either slowed down or doomed certain projects. 

Basic training is important.  But so is SELLING the users on the new system.  You must show them how they will benefit.  If they don't see how their lives will improve, don't feel they've had input into the project, or feel you don't understand their needs, you won't get their cooperation.  Specific suggestions include:

1.  Thorough training of users prior to the roll-out

2.  Involving actual users in the testing (and test thoroughly - end to end)

3.  Project managers forget that not everyone understands the project as well as they do.  Communicate with the users and other members of the project, as well as executives.

4.  Include all of the appropriate people and functions in the decision-making and planning elements of the project.

5.  Beware of writing off complaints and concerns as merely the act of people trying to protect their turf and status within the organization.  They may have legitimate concerns that need to be addressed.

6.  Don't get excited about the technology.  Look at the business and the processes, understand them thoroughly, and then look at how technology can improve them.

Questions to ask a value-added reseller (VAR) providing you with a server 
BuyerZone
Thirteen good questions to ask when you're buying a network or a server from a consulting firm.  While some of the questions are obvious, and others are not well explained, this is a resource you can use to do a better job of finding the right vendor. 

This article is from the Savvy Shopper archives on BuyerZone. You may find some other helpful pieces on buying information technology.

Monster in a Box?
CIO Magazine
Written from the point of view of the CIO, this article discusses the dangers of using application service providers (ASP's) without the input of the IS department and the CIO.  They include:

Do they have any real, paying customers, as opposed to giveaway or pro bono accounts?  Do they have any customers at all?

Are they going to be in business after you contract with them?  There are a LOT of ASP's getting into the market, and they're not all going to survive.

Many ASP's are aggregators of services and are building pretty complex supply chains.  Who are their partners and how reliable are they?  How complex is the system, and what happens when it fails?  Who do you call and how fast will be the response and resolution?

How customizable are the applications?  In most larger organizations, some customization is going to be required.

Where ASP's are being used in larger organizations, they're not for big data processing applications, but for special projects. These would be needs where you don't have the time, expertise, or where the technology isn't part of your core business.  But then there's the concern for support.  Who are the users going to call?  Most likely, it'll be IS because that's who they've always called.  But if it's an ASP product, IS won't be able to actively help, other than to call the ASP (or their partners).  Users will get frustrated with IS and the ASP.

And then there is that knotty problem of security.  Are you sure you want to put your critical company data on the ASP's systems?

ASP's sales departments are end-running the IS function and selling directly to the business units.  Your company's managers are probably not asking these hard questions and may make decisions that they and the IS department will regret.

Finding the Right Consultant
inc.com
This is a short article outlining the basics of hiring a computer consultant. 

Experience - they should have actually done similar types of projects in the past.  And the experienced personnel should be the actual staff working on your project.  Just because the company did the work doesn't mean that the engineers on your project have anything resembling a clue.

Staffing - How many other projects are the people who will be assigned to your project working on - how thinly are they spread?  How long have they been with the company?  If there's another phase to the project, will you be able to use them?

Guarantees - What assurances do you have that the project will be finished on time, and that the staff assigned to your project actually have the capability to do the project to your satisfaction?  Do you have the ability to EASILY get rid of a consultant that you're not happy with.  How fast can he or she be replaced?

Pricing - Get detail as to how they calculated the estimate for the job, or the fixed price bid.  Determine what they will consider to be "extras".  If you're on a time and materials basis, establish frequent milestones to make sure the costs don't get out of hand.

References - The article gives some useful questions to ask when you're checking references.

Scope - Spare no expense in carefully defining the scope of the project.  This includes objectives, acceptance criteria, time frames, resources to be used, assignments, and an action plan. 

Return to Spender
BusinessWeek
This is a good discussion of calculating return on investment (ROI) before you make that next purchase.  They go through the calculation, provide a more realistic estimate of costs than your dealer is probably going to tell you, and offer some ideas on measuring your return.  The problem, as they explain, is that measuring return on office employee productivity is really tough and may take some wild estimates.  But recognizing your true costs, and making some sort of attempt to measure the payoff, are critical before you drop a ton of money on a workstation upgrade, new software or a faster network.  In my opinion, even if you can't get good, hard numbers on the value of an investment, you MUST be able to identify specific benefits.  Then you can at least decide if they're worth the cost.  If someone tells you that you need that 100Mb switched Ethernet upgrade, make them clearly show you the need.  Then you can decide if the cost is worth it.

Most enterprise computing efforts fail, says report
Computerworld
There are some scary statistics quoted in this short article on a survey by the Boston Consulting Group.  For example, only 37% of 100 executives polled said that there had been a tangible financial benefit from their projects.  The message for you?  Make sure that, before you embark on big, expensive projects, you know what the goal is, the ROI, and how you're going to get there.  If you don't have clear, business objectives for your project, and if you fail to thoroughly plan; don't expect the project to be a glorious success leading to career advancement and the corner office.

How to hire a Web site designer
ZDNet Small Business
This article gives you some good advice on buying your Web site.  Even if you already have one, you'll probably get some good ideas for your next project.  There are suggestions on finding and evaluating designers and developers.  Since the author is a lawyer, there is a valuable section on what the contract should include.

There's trouble in e-paradise
ZDNet - Smart Reseller
What?  Ecommerce consultants over-promising and under-delivering???  Say it ain't so!!!  Duh.  This article discusses a Giga research report that says that you need to be more circumspect when engaging a partner for your ecommerce project.  The gist of the recommendations are to: 

1.  Be wary of the grand claims of the vendor.  In a big project, no one can do it all.  Investigate the claims, check references, etc.

2.  Look at the experience of the vendor and match that up against your needs.  If they've done nothing but big B2B projects, and you want to sell pipe cleaners to first graders, there may not be a match.

3.  Match their recommendations against what your company can handle.  Do you have the technical infrastructure in place?  Do you have the fulfillment and customer service capabilities to match the business they're promising?

4.  Everyone is issuing press releases on their latest relationships and partnerships.  But no one is announcing the break-ups.  Look for long-term associations if you're counting on them as part of your project.

Top IT Purchasing Trends 2000
This is a useful article detailing the purchasing plans of many IT managers.  Obviously, everyone has different needs, but reading this article may give you a reality check on what YOU should be thinking about for this year's budget.  Topping the list is enterprise databases.

Crash and Burn
Entrepreneur Magazine
This article reads like a promotional piece for UUNET, but it does provide some useful information on selecting a Web hosting company.  The emphasis is on reliability - looking for business continuity features like dedicated servers, back up power and data lines, mirrored sites, frequent backups, site monitoring, and contingency plans.  Another recommendation is to have a service level agreement in place specifying the amount of allowable downtime and appropriate restitution.

Web Host Guild
This is an association of hosting companies that purport to maintain high standards of reliability.  There is a certification process and the standards, if they are actually followed by the members, provide some reasonable assurance that your site will stay up.  If nothing else, look at this site as another resource to use when selecting your hosting company.  Do your own certification, and ask them to meet the guild's criteria (it's listed on the site).

Making the grade
Computerworld
Last week, we talked about the Boston Consulting Group's report on how poorly ERP projects are performing.  This author suggests that it isn't just a function of poor management and planning, but of a lack of commitment from the rest of the company and executives.  ERP systems, by their very nature, require deep involvement from all quarters of a business.  And if the marketing department, sales force, plant management, and the executive suite are reluctant participants, no amount of high quality project management will make implementation successful.

Negotiate everything, or negotiate nothing
By Joe Auer, Computerworld, 8/2/1999
This is a very good, short article on two elements of negotiating technology purchases - extended service contracts and fixed price vs. time and materials agreements.  The gist is to know the price of the service after the warranty period BEFORE you buy the product.  And to use T & M agreements for open ended activities and fixed-price contracts for projects that have a well defined scope.

Shop Talk
By Mindy Blodgett,  CIO Magazine, 7/15/1999
Not a very informative article, it briefly describes the implementation of J.D. Edwards' ERP software for Baxter Cardiovascular Group. 

Going Steady
Lauren Gibbons Paul, CIO Magazine, 7/15/1999
This is an excellent discussion of PC single sourcing, including interviews with several CIO's.  The benefits include clear, rock-solid standards, simplified support, better pricing, and better software and hardware inventories.  Problems include making sure that special user requirements are considered when setting standards, and making sure that the vendor's pricing really is the best.  Although written from the experiences of very large companies, there is something of use here to most organizaions that are considering setting standards.*

May it help you?
By Mary Lisbeth D'Amico, Computerworld, 7/8/1999
Discusses a report, from the consulting company Ovum, that evaluates "customer relationship management" software (CRM).  They recommend careful evaluation of the software since most of the packages are specialized to one type of primary customer contact, be it call centers, outbound sales, ecommerce, etc.  If you choose the wrong package, you'll spend too much money trying to make it work for your company's business model.

The PC Direct Guide to buying Network Hardware
ZDNet - UK, December 1998
This article, from ZDNet's UK site, reviews some of the basic hardware fundamentals about networking.  It is short and to the point and serves as a good introduction.

Business Guide to Network Computing
Computershopper.com, July 1998

This is a collection of articles which are summarized below:

Business Connections
By Steve Rigney, Computershopper.com, July 1998
Provides a good introduction to networking with some useful insights into the different technologies as well as planning considerations.  However, the author throws everything but the kitchen sink into the mix - you probably aren't going to be interested in voice-over-IP or VPN in your initial network.  He also refers to specific brands, models and prices, which are no-doubt out of date as you read this.  I disagree with some of his advice, particularly related to his dividing the network use into line-of-business vs. administrative.  In general, though, this is a useful guide to the potential of your network and, to a lesser extent, the design of your first network.

Outside In
Computershopper.com, July 1998
A good discussion about some of the reasons for networking and some interesting gotchas, like skimping on cabling, using early releases of software and overly creative users.  The consultant interviewed is a little too enthusiastic about the benefits of a network, (eg. for printer and modem sharing - there are probably cheaper and more effective alternatives)), but the article is a useful read.

Lessons Learned
By Oliver Rist, Computershopper.com, July 1998
A very good discussion about some of the things to avoid and plan for in your initial network design.  He includes advice on getting trained, avoiding a Microsoft bias, planning for an intranet or Internet connection, setting up multiple protocols, documentation and disaster recovery.

Confessions of a Software Salesman
By Wayne Pollard, CIO Magazine, 7/1/1999

This is an excellent article providing some great advice when you're looking at your next important piece of software.  Much of the article is oriented around making sure the product works, will function in your type of environment and isn't vaporware. The most important points are mentioned here, but the article provides much more detail. 

If you put out an RFP, specify that functionality must be in current products and that this will be confirmed during the demo.

During the demo, bring the RFP response along and confirm the vendor's commitments against the demo; go through EVERY icon and feature, make them demo the feature, not just describe it; confirm that what you're seeing is current and shipping software; rely on answers from the engineers, not the sales person; and watch for body language.

When checking references, ask for several that are using the exact version of the product, in the size and environment you'll be in; and visit the reference site. *

Outsourcing Research Center
CIO Magazine
CIO Magazine is an excellent publication providing some good, content-rich articles.  This section indexes their articles on outsourcing.  Other sections of lesser value include a links section, events schedule and vendor listing.

PC Contracts: Weasel Words
By Kim S. Nash, Computerworld, 4/19/99
A short article providing some tips for avoiding problems with your computer leases.  Some snags include requirements for shipping the computers back at the end of the lease in the original boxes; defining when the lease starts (it isn't necessarily when the computers arrive); understanding the finances to make sure you've got the best deal; and being very careful if you try to extend the lease beyond its term.

Network Checklist
By Scott Buswell, Northwest Educational Technology Consortium, 1996
This is a useful checklist for issues to consider as you are designing your network.  It is highly oriented towards the K-12 educational environment, but might provide some useful ideas in your own planning. Note that while the page provides you with the ability to fill out a form, it doesn't do anything.  My suggestion is to review it for ideas, not to fill out the form.

Missing Links
inc.com
Two case studies of small businesses that didn't have particularly good experiences with networks and resellers.  Unfortunately, the author gets several technical issues VERY wrong, and wastes too much time on specific models and manufacturers.  But the stories do highlight some basic mistakes that are commonly made:

1.  Buy from a dealer who asks you LOTS of questions about your business and can show you how their recommendation fits in with your goals and objectives. 

2.  Don't assume that the new technology is the only way to solve your problem.  Maybe you could get by with less, but only if the dealer was interested in solving your problem, and not making a sale.  Just because they give you lots of information, and truly care about your business, doesn't mean they'll get it right.  You still might spend money unnecessarily or get the wrong system.

3.  Don't take advice from amateurs.

Choosing a reseller
TechnologyNet
This article, part of their larger site, is on finding a reseller.  It gives a brief overview of the types of resellers, as well as some tips on choosing one.

Y2K 'fix' cost firm $19M in sales
USA Today, 11/11/99
The other story in the USA Today about software problems was this story about Royal Daulton, the china company.  They lost a bucketload of money in lost sales ($19 million) due to problems installing a new Y2K compliant product.  Since Christmas is their best season, and the system is causing delays of up to 10 weeks, this is a big problem.  The company is already hurting because people aren't buying fine dinnerware anymore, and this isn't helping.  So all you people out there, start demanding fine china when you go to Denny's!

SAP: Whirlpool's rush to go live led to shipping snafus
Computerworld, 11/4/99
This article reviews Whirlpool's problems with their implementation.  According to the story, SAP raised "red flags" about the implementation, but the company and the consultants wanted to get going earlier (because of Y2K), and they wanted to take advantage of the Labor Day weekend.  After a short period of calm waters, things got wacky when dealers stopped getting the products they needed, and had to steer customers to other brands. 
There's plenty of blame to go around, including consultants and customers who were in too much of a hurry, and vendors who didn't set the customer expectations that there WILL be problems. 

There is an interesting quote in the article that is VERY significant, if you read it with a cynical perspective.  If comes from Chris Selland at the Yankee Group who said that SAP has recorded more implementation successes than failures.  Now let's think about this really hard.  Is this a ringing endorsement?  After spending millions of dollars on an ERP implementation, whether it's SAP, PeopleSoft or any of the other products on the market, the only comfort that you can take is that it works more than it doesn't work? 

Selland goes on to say that there WILL be lots of little problems and about ten major problems.  Customers MUST understand this before they embark on a project.  In MY humble opinion, a vendor or consultant who doesn't set the customer's expectations is misleading them.  And they're setting themselves up for media coverage like this.

Hershey's Biggest Dud Is Its New Computer System
Wall Street Journal 10/29/99
Here's another history lesson.  Hershey just put in a new BHS (big honkin' system) that is failing and hurting their Halloween season and damaging customer relations.  They can't get their candy out of the warehouse and onto the retailers' shelves. Their competition - Mars and Nestle are eating it up. 

They implemented a combination of SAP, Seibel and Manugistics to control every aspect of the sale and delivery of their products, as well as their accounting and operations.  Unfortunately, they implemented a large piece of the project all at once instead of migrating slowly.  This approach is not recommended.  On top of that, they were going to do it in April, but got delayed till July, which is when Halloween sales pick up.  Oops. 

I'm guessing the CIO at Hershey is getting a stern talking-to these days.  Maybe if he or she had been a little more "cynical" and a little more cautious and careful, they wouldn't have seen the company stock price go from $74 to $49.50.  Things are getting pretty scary when the decisions of your CIO can immediately affect your stock price.

Is it time to change your ISP?
ZDNet, Small Business Advisor
While I'm not sure that the reasons cited are necessarily good enough to flip your ISP, they are certainly useful criteria when evaluating potential NEW ISP's.  They include the ability to handle high-speed lines, ecommerce and web page building tools, and live human beings answering the phone.

Retailer Bets Big on Windows 2000
Computerworld
Here's a story that bears watching for the next year or so.  Homelife is rolling out Windows 2000 (an unproven and brand new OS) to 127 stores.  They're providing backup WAN connections, but not actually putting local networks in the stores.  If the connections fail, or the servers die, there's no local capability to keep the stores running.  Of course, in the old mainframe days, this was also the case.  But in those days, you had a slightly more reliable and proven system.  As one analyst quipped, "I think people are going to be very jubilant that these people, out of the goodness of their hearts, are testing (Windows 2000) for the rest of us."  It IS nice for Homelife to run this first big implementation for the rest of us.  I wish them luck.

 

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