Archive for May 2009

Asking the right questions

Many RFPs base the set of questions for desired functionality around their existing software’s functionality, often in a negative sense.  Questions expressed in terms of “Must be able to re-calculate an annual bill without using an external spreadsheet” usually say more about the deficiencies perceived or experienced in their current software than how thie hoped-for new billing application will work.  It leads to vendors having to answer questions with “Complies with intent” type responses, which usually mean that the question was too prescriptive to begin.  External consultants with industry experience can frame questions - and potential answers - to provide maximum benefit to those looking for new software.

Conferences

One forum at which to meet both vendors and fellow users of billing software is user conferences of say the Water Association or a specialised conference.  Such a specialised conference is smart metering, such as the upcoming conference in Sydney, Australia.

“Our own space shuttle”

Indiana has been mandating changes to the way some its counties do their property tax billing, and that has meant new software for many.  “The Indiana Department of Local Government Finance, which approves certified budgets for taxing units and sets tax rates, expects 35 to 40 counties, including Vanderburgh and Warrick, to establish May or June due dates for the spring installment. Vanderburgh County officials expect to announce a mid-June due date soon.

Gibson County has requested a June 12 due date, while Posey County works to catch up with this year’s billing while finishing up last year’s billing cycle. It was delayed when the county was ordered to conduct a reassessment.  Five counties are yet to have their ratio studies — a comparison between sales and assessed values to ensure market values are being used to determine assessed values — approved by the Department of Local Government Finance, a step that should have been completed a year ago.

The state agency and county officials across the state attribute the delays to widespread software conversion, data compliance and reassessment issues. Responding to a state mandate that it switch to a certified property tax billing system, Vanderburgh County has been undergoing what Treasurer Rick Davis calls a “drastic and severe” conversion since January. Other counties received similar mandates.

“What we had before was a Model T; what we’ve got now is a space shuttle,” Davis said. “It’s taken months of very diligent work (to make the conversion).” - from Indiana Courier Press.

Failed implementations

It always takes longer and costs more than anyone thinks - including, usually, the vendor.  Three projects have gained notoriety in recent years - Philadelphia, Dallas and Sydney.  A close examination of the relevant reports should give any public sector manager an idea of the risks of implementing any public sector billing software.

Choosing a consultant to help select the software

  1. SPECIFY: Define what the requirements are for a billing system selection consultant.  A billing system selection selection consultant is truly technology-independent and aren’t trying to sell a particular software, and has a broad understanding of the market’s key players, including their strengths and weaknesses
  2. EVALUATE: Develop list and qualify based on methodology, deliverables, project experience in your industry, time line and overall cost. The strong consultants will have a clear set of deliverables and project milestones, and the best will provide their services at a fixed cost.
  3. SELECT: Get references and resumes of staff and interview before engagement begins to ensure a good fit for the culture of your organization. Speak with client references to learn more about their working style and quality of work.

Software selection

Selecting the appropriate billing software should involve industry experts, those who have worked in the industry but have a firm grasp of what public sector billing software should be able to do through exposure to some of multiple products available.  Too often an RFI is sent out based on a narrow view of what is required with the result that software that is not future-proof is acquired.

Business processes

Implementing a new billing system is sometimes used as the trigger to change business processes.  Very often these have grown over time, and incorporate inefficiencies imposed by a legacy billing system.  However no-one in the organisation may remember why a rule or process is in place - “we’ve always done it like that”.  Modern, well-designed software should support low overhead, high impact, efficient business processes.

Vendor tears

Billing systems are difficult to implement because of the complexity of billing rules that have been built up over the years.  Very often the municipality or utility struggles to describe its expectations in such a way that a vendor knows what is expected of them.  Once on site phrases such as “we thought it was obvious” are all too common.  A well-described User Requirements Specification or Checklist is an essential part of the selection process, and external consultants who have been through the process several times with multiple municipalities or utilities a key element.  Given the complexity of the billing rules, the consultants should themselves be experts in public sector billing rather than generalist consultants or specialists in other types of software procurement such as ERP systems.

Vendor tiers

If public sector billing software is thought to be tiered in the same way as ERP software then the same two players are in Tier 1 - SAP and Oracle.  However property tax and utility billing software is a niche application; success with an ERP product does not mean that the billing product will be anywhere near the best available.  A quick Google or Live search for “water billing software”, for example, will produce multiple pages of possibilities.  Despite the consolidation mentioned previously, in the North American market there are abundant choices.  The same is true for property tax billing.  Municipalities and publicly-owned utilities should seek expert advice when selecting a new billing system.

A shortage of vendors?

The number of water billing vendors is falling - or, as they would put it, consolidating.  One of the major consolidators is Harris Computers who added the Systems & Software UB application to their stable around 18 months ago.  Perhaps Systems and Software losing out to Infor’s Hansen application at San Antonio Water didn’t help.  Rumor has it that Infor Hansen, SAP and Oracle’s SPL product are the only three in the running for the soon-to-be-announced New York City water billing decision. Whatever municipalities and utilities decide, independent advice is increasingly important.