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Software investment erosion

June 27, 2013

Ten years ago at a local customer conference in New York City, I presented this slide to a group of customers intrigued by the session titled, “Help! What are my Kronos support resources?”

2003 Services effect on long-term ROI

The slide depicts the journey of two Kronos customers, one that invested in services to extend the value of their significant Kronos investment, and one that didn’t. One C-something customer later told me, “That’s the best slide on the value of IT services I’ve ever seen.” Hey, thanks. Much of it is just about staying current regarding your initial (large) software investment as things change over time:

  • Skills – How do employees stay fresh, and even extend their capabilities using the system?
  • Growth – When onboarding, how do new employees learn to use the system effectively?
  • Progress – How do you add or change integration with other systems, add features, improve process, and upgrade your software?

More recently I found an excellent whitepaper by Michael Doane, titled, “Your Users Are Stumbling and Your Business Is Suffering – How cutting SAP Training could make bad times worse.” It’s from 2010, but good advice never gets old, plus there was this cool, familiar graphic:

Doane chart

Mr. Doane’s piece also includes the following blunt statement explaining how the value of an enterprise software (and not just SAP) investment can erode over time:

“Without some form of continuous training, end users are hopelessly out of sync with changes to the business process, functional upgrades, and transfers or new assignments—all roughly at a 10% annual attrition rate.”

Most Workforce Central customers already have access to our KnowledgePass education portal, and we also offer a full curriculum of training courses. So are you the blue customer or the red customer?

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