In This Issue:

Message from the CEO

 

Friends of Neochange,

 

Since we published our last newsletter, Neochange has achieved a number of very exciting milestones. The first is a new level of client diversity. We are concurrently working on engagements that include 3 Fortune 100 customers, impacting 30,000 end-users across multiple industry sectors (healthcare, technology manufacturing and financial services).

 

The second milestone is the importance and scale of our projects. We are working on global deployments of both CRM and PPM representing approximately $200 million of value to our customers. The third milestone is the growth of our team. To meet our growing roster of customers and to support global deployments we have added several new team members and have established a footprint in London.

 

Obviously we are happy with the unfolding market validation of our goal to shift the industry towards Effective User Adoption™. We hope you will continue to be part of our journey as customers, partners and change leaders.

 

Please enjoy the newsletter.

 

Chris Dowse
Founder and CEO, Neochange

 

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White Paper - Effective User Adoption™ = Maintenance Revenue Protection

 

Neochange has published a new White Paper at our website.
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This thought leading White Paper discusses how Software Vendors can protect their Maintenance Revenues by elevating Effective User Adoption™ practices.

 

Over the past several years, maintenance revenues have grown to represent the lion's share of operating profits for many software vendors. As this profit dependency grows, multiple market forces are aligning to threaten this sacred industry cash cow. If these threats are not addressed, leading software vendors stand to lose $billions of high margin maintenance revenue, which will erode company profits.

 

Neochange outlines the magnitude of this threat and proposes a solution for software vendors, which is to redirect operational investments towards customer value realization by elevating Effective User Adoption™ practices.

 

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Industry Statistics Which Need To Be Addressed

 

There is no shortage of industry statistics that highlight the need to focus on Effective User Adoption™. Here are just a few:

  • Through 2010, 75% of complex CRM SaaS deployments will fail to meet enterprise expectations. Gartner Vice President Robert DeSisto Sept 2006


  • 50% of surveyed IT Asset Management managers have started to monitor software usage to harvest and redeploy licenses that go unused. Gartner April, 2006. Asset Management Trends


  • 5% of firms actually collect ROI data on PPM implementations. As quoted in CIO Magazine Australia July 2005 from a survey by the Aberdeen Group


  • Only 2.5% of physicians are entering 50% or more of patient orders. KLA Enterprises as reported in Healthcare IT News February 2005


  • 31% of all pharmacy orders entered with CPOE are re-entered into the pharmacy system. KLA Enterprises as reported in Healthcare IT News February 2005

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Point of view

 

Change Leadership is Critical for Effective User Adoption™

 

We just had the pleasure of starting work for the CIO of a $4 billion IT function. We say pleasure because this CIO has learned the hard way at previous companies what it really takes to drive transformational change and get employees to adopt new technology enabled processes.

 

What we discussed with this CIO were 2 critical change leadership concepts. First, as a change leader you need to have some sense of the organization's capacity for change if you want to be successful. Trying to drive too much, too quickly without regard to operational readiness is a recipe for disaster for any type of initiative and partly explains the software industry's usage crisis.

 

Second, we discussed how sustainable change is really effected in complex organizations. What this CIO understands, and what we constantly advocate, is a multi-fronted approach to change leadership. We like to see strong top down executive sponsorship as always. But we also like to see change being led by middle managers and we always want to create opportunities for grass-roots involvement or outright grass-root driven efforts.

 

We are building our clients' change leadership capacity to address these two critical adoption management challenges. We build these capabilities through a combination of coaching programs and workshops. The benefit to our clients is immediate and enduring. In the short-term adoption management practices can be applied to our client's IT enabled transformation efforts. Over the long-term these practices can be re-used for adoption challenges that arise as strategy, structure, process and technology are changed.

 

Resurrecting Failed Deployments by focusing on Effective User Adoption™

 

The software landscape is littered with failed implementations that have not delivered their expected business outcomes. The statistics are telling: according to a recent Butler Group study, 50% of the functionality paid for and licensed by organizations is not actually used.

 

As more organizations invest in software asset management practices they are gaining improved visibility into the utilization of their software applications. Often what is discovered is dormant and underutilized software. Enterprise buyers are consequently left with two choices - do they pursue a strategy to achieve value realization from their ailing software deployments or do they write them off and renegotiate their maintenance contracts.

 

Maximizing the value of purchased software requires a disciplined approach to uncovering and mitigating adoption barriers that are holding back desired business outcomes. By focusing on the key determinants of Effective User Adoption™ organizations can accelerate time-to-value for software deployments that are currently not delivering.

 

It's never too late to resurrect failed deployments if you focus on Effective User Adoption™ as a driver of value realization. To find out more about Neochange's Effective Usage Activator services:
Read More

 

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Neochange Presents at Software Industry Conferences

 

In the last month Neochange was invited to speak at two leading Software company conferences: Planview International Users Conference in Austin, Texas and Macrovision SoftSummit Conference in Santa Clara, California.

At the Planview Conference, Neochange spoke on how customers can maximize the value from their PPM solutions by focusing on Effective User Adoption™. Randal Childers, VP McKesson Provider Technologies, joined Neochange to discuss his perspective on how Effective User Adoption™ activities are critical to PPM value realization.

At the SoftSummit Conference, which was attended by a large cross section of leading software vendors, Neochange spoke on the growing importance of Effective User Adoption™ on software revenues. Furthermore we presented how market leaders can protect their revenue streams using adoption practices.
Left to right: Randal Childers, McKesson; Steve Alexander, Planview; and Chris Dowse, Neochange at the Planview International Users Conference.

 

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Upcoming News

 

New White Paper - Healthcare IT: We cannot afford Enterprise Software user adoption history to be repeated. To be published in November 2006

 

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