Chris,

I spent 13 years with what is now a Fortune 100 company before doing  
my own thing.  When I joined them, they weren't even in the Fortune  
1000.   Many of the systems were added-on and upgraded over time,  
similar to your situation.

It came to a point where the business case had to be made to modify  
the entire internal application infrastructure to something that  
would integrate and scale to the size that this company had become.

Even a rough estimate of man hours should give you a strong business  
case for the following:

1) Annualized hours required to maintain or add features to the  
existing application vs. the same required to do the same on a "from  
scratch" application.

2) If the end goal is to re-distribute or re-sell the application or  
services, annualized hours required to support customers with the  
current app versus your proposal.

3) Annualized hardware scaling costs, assuming a reasonable growth  
rate.   For example, if the current application is highly inefficient  
in the way it consumes resources on the app server and DBMS side,  
it's going to require more hardware resources per client  - i.e. -  
less profitability per client.

4) Net value of the software application as a fixed asset.   By  
developing something internally with  a higher degree of scalability  
and greater ease in adding features/enhancments, the value of the  
companies assets increases.   They can depreciate the R&D costs and  
grow their net worth because the software is more valuable to clients  
and potential investors.   This one's more difficult to calculate,  
but many business people don't factor in the value of their internal  
software assets.

My former company now places a high value their internal projects and  
intellectual property as assets and has an entirely separate business  
and service model for marketing those assets to third parties.

All in all, if you are dealing with those who made the original  
decisions, congratulate them on their success and reassure them that  
the decisions they made previously were the best they could be at the  
time.   This proposal is a product of their success - NOT a failure  
on their part - even if you personally see it that way.

The above can help make the pill easier to swallow and help you  
influence those who, as Dave said in his response, have a vested  
interest in the decisions which were made prior to your involvement  
in the project.

HTH,

Jon

On Apr 24, 2007, at 7:53 AM, Peterson, Chris wrote:

> I would like some advice on how to approach a client regarding changes
> to their system.  Before they were my customer, they purchased a
> software package that could do X.   Then they spent years having a
> company develop it into Y, with many different methodologies and
> extremely bad database practices (when you have to join on a LIKE
> '%blah%' just to associate 2 things that obviously MUST be associated,
> and you have one column for each category an item is in, the  
> database is
> bad).  They bolted on an accounting package that does not tie payments
> to items, so tracking is a mess and allocation of payments to items is
> impossible.  Here is the problem:  the customer wants to have a  
> product
> they can re-sell or host for other companies.  I need to tell them,  
> in a
> way that makes sense to business people (which I am not), that  
> trying to
> build more software on a shaky base is folly, and will cost them far
> more in the long run. I don't want them to have to pay for  
> modifications
> to this code, and then when it comes time to try and re-sell it,  
> have to
> re-code from scratch because they have no rights to re-sell their base
> package or derivative works!
>
> Any angle to take, or insight into conversations you have had,  
> would be
> appreciated.  I don't want to tell the customer 'your current package
> you spent years on isn't very good', but I don't want them to hold  
> on to
> it either!  Ugh.
>
> Chris
>
> 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~|
Create Web Applications With ColdFusion MX7 & Flex 2. 
Build powerful, scalable RIAs. Free Trial
http://www.adobe.com/products/coldfusion/flex2/?sdid=RVJS 

Archive: 
http://www.houseoffusion.com/groups/CF-Talk/message.cfm/messageid:276137
Subscription: http://www.houseoffusion.com/groups/CF-Talk/subscribe.cfm
Unsubscribe: 
http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.4

Reply via email to