Information Systems: How to Choose, Implement Without Losses, and Improve Business Efficiency by 25-30%

How to choose and implement an information system, avoid losses, and improve process and management efficiency.

  • Why companies need an information system
  • Choosing a system
  • Stages of information system implementation
  • 1. Define goals and audit processes

Every second company loses money because of manual processes: orders get mixed up, reports take weeks to prepare, and managers cannot see the full picture. Information systems (IS) solve these problems - they automate routine work, unify data, and help manage the business. Here we explain what types of systems exist, how to implement them without losses, and what to consider when choosing a contractor.

Why companies need an information system

Information systems are software solutions that help collect, process, and analyze data for business management.

They automate routine work, reduce errors, and give managers a clear picture for faster decisions. According to Gartner, organizations that invest in digital transformation based on information systems adapt to market changes 30% faster and manage risks 25% more effectively. What if you do not implement an information system?

Without information systems, business operates less efficiently and incurs additional costs.

Below are the main challenges that arise when automation is missing. - Customers are leaving and deals are falling through - without CRM, managers cannot track every customer contact.

This leads to duplicate calls, loss of conversation context, and missed deals. - Departments work in silos - without an ERP system, production does not have up-to-date inventory stock levels, and procurement does not factor in sales plans.

The result is surplus or shortage of goods, leading to losses of up to 20% of the logistics budget. - Documents get lost, and deadlines are on fire - when documents are stored in email or on local devices, versions get mixed up, are lost, and reporting deadlines are missed. In regulated industries, such errors lead to fines - for example, for late tax filings. - Decisions are made too late - managers spend several days collecting data from scattered Excel spreadsheets.

It is impossible to quickly analyze sales trends or the performance of advertising channels. - Routine work reduces productivity - employees spend up to 30% of their work time searching for documents, filling out forms, and getting approvals.

This not only demotivates the team, but also increases operating costs.

Thus, information systems solve tasks related with resource, customer, and financial management.For example, ERP systems combine data from sales, procurement, and production to eliminate planning chaos, while CRM systems track customer interactions and help prevent deals from slipping away.

Choosing a system

An ERP platform that works well for shop floor and warehouse management will be useless for an online store, where CRM and marketplace integrations matter more.

When choosing, pay attention to these criteria: - Does the system solve your main business tasks - for example, automating the processes that are holding back growth. - Can the platform scale - consider how it will perform as load and user count increase. - Is the system compatible with your current software - so you do not have to rebuild your entire IT infrastructure. - What is the total cost of ownership - including not only the purchase, but also customization, training, and updates. Let's look at the key system types, their business tasks, and examples:

System typeCore functionBusiness tasksExamples
ERPEnterprise resource planningProduction planning, inventory control, finance, logisticsMonolithic ERP, 1C:ERP
CRMCustomer relationship managementCustomer database management, sales automation, service supportBitrix24, Salesforce
ECMEnterprise content managementFile storage, collaboration, document versioningDirectum RX, Microsoft SharePoint
BIBusiness analyticsSales analytics, forecasting, data visualization"My Business: Analytics", "Yunikom"
SCMSupply chain managementLogistics automation, shipment tracking, supplier managementOdoo, 1C:Transport Logistics, Global-SCM
MESProduction process managementShop floor control, production output tracking, quality, equipment utilization1C:ERP, Galaktika MES
CMSContent managementUpdate website content without developers, manage an online store1C-Bitrix, WordPress

We covered the functions and benefits of each solution in detail in Examples of information management systems.

Stages of information system implementation

An information system must be implemented systematically - if you skip a key stage (for example, testing or training), you can lose budget and miss deadlines. Let us go through all the steps in order. 1. Define goals and audit processes Start by clearly defining the tasks the system must solve. Set measurable goals, for example: "reduce order processing time from 3 hours to 40 minutes" or "increase repeat sales by 20% using CRM".

Then analyze your current processes: identify weak points, time losses, and routine tasks. For example, if the sales team spends 60% of its time preparing proposals manually, that is an opportunity for automation. 2. Choose a contractor and sign a contract. Review potential vendors: large integrators are suitable for complex projects, regional companies for mid-sized businesses, and an in-house IT team for simple tasks.

Include deadlines, budget, acceptance criteria, and post-launch support terms in the contract. 3. Create the specification and configure the system Prepare a technical specification - define the system functionality and how employees will use it. Based on the specification, the contractor will configure databases, interfaces, and integrate the information system with the company's existing systems (for example, 1C or CRM). It is important that key users take part in the process - they will help ensure the system matches real business processes. 4.

Test the system and launch a pilot Before full deployment, check how it works in test mode. First run functional testing of all modules, then launch a pilot in one department. Gather feedback from the team and make adjustments to reduce risks during a large-scale rollout. 5. Train employees and launch the system Train employees - use webinars, videos, and simple step-by-step instructions. Assign specialists who can quickly help colleagues when working with the system.

Launch the system during a low-load period - avoid quarter-end or reporting days. 6. Provide system support and ongoing development. After launch, fix bugs, update modules, and adapt the system to business changes. Think ahead about what features will be needed in the future - for example, adding call tracking after launching CRM. Keep in mind that up to 60% of the budget goes to support, not implementation.

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How to choose a contractor for IS implementation

Choosing a contractor is a key step that directly affects the success of a company's digital transformation. According to market data, up to 65% of companies face problems because they chose the wrong vendor. An unsuitable contractor can miss deadlines, exceed the budget, or fail the project entirely. Here is what to check: - Industry experience. Make sure the vendor has completed projects in your field.

Ask for contacts of 2-3 clients and find out whether the system paid for itself and how business metrics changed (productivity, error rates, order processing time). - Technical support. Ask how support works: whether there is a hotline and remote issue resolution. - Financial transparency. Request a detailed cost breakdown: what is included in the price (licenses, setup, training, support) and what is charged separately. - Flexibility.

Assess whether the vendor is ready to adapt the system to your processes instead of forcing a standard solution. Important!If you work with Agile, and the contractor works from a rigid, preapproved plan (waterfall model), conflicts will arise. You will not be able to change requirements quickly during implementation, which may lead to delays and a system that does not match real needs. Negotiation checklist: - milestone-based payment.

Break the project into stages (audit, prototype, pilot, full implementation) and tie payments to the results of each stage. - Data rights. Make sure you will get access to all system settings and data if you decide to change vendors in the future. - Termination terms. Specify in the contract how the project exit will work and what compensation is provided. Common mistakes: - Cutting corners on quality. A low price often means hidden costs or insufficient expertise. - Weak analysis before launch.

The contractor did not audit your processes and is offering a standard solution. - Ignoring training. Employees do not understand how to work with the system and undermine its use. Let's compare vendor selection approaches:

ApproachProsConsWho it's for
Large integratorExperience, resources, methodologyHigh costLarge business with complex processes
Regional companyFlexibility, personalized approachLimited resourcesMid-sized businesses with standard tasks
Internal IT departmentNo additional costsLack of expertiseCompanies with strong IT and simple tasks
Private expertLow costRisk of missing deadlinesStartups and small businesses with limited budgets

Implementation mistakes

Research shows: up to 70% of IT projects go over budget because companies have not properly worked through the early stages. Let us look at the typical mistakes in implementing information systems that can cost businesses millions. 1. Incorrect

Choosing a system

  1. .Implementing a solution "just like a competitor's" without tying it to your own goals - start with a process audit and clearly define implementation KPIs. 2. Savings on training.Employees do not understand how to work with the system and undermine its use - allocate at least 15% of the project budget to training and support. 3. Ignoring the testing stage.

  2. Launching an untested system can halt operations - run a pilot implementation in one department. 4. Lack of a development plan.

  3. The system may become outdated in 1-2 years - plan development stages and an upgrade budget in advance. 5. Poor communication between departments. The IT team is not getting feedback from users - appoint coordinators in each department and regularly collect suggestions. 6. Scalability was not considered.

  4. The system cannot handle growing load - build in capacity headroom and a modular architecture at the start of the project.

How a retailer increased sales with CRM

The Ecobar chain of eco-goods stores faced chaotic order growth.

Managers spent up to 5 hours a day manually transferring data from Excel spreadsheets, which led to duplicate orders, delivery errors, and negative reviews.

During promotions, the workload increased, and employees spent weeks manually sorting out the fallout.

Purchase conversion dropped to 7%, and customers left for competitors because of slow service.

The company implemented RetailCRM, to automate processes and unify data from all channels: -

Integrated online and offline sales - orders from the website and marketplaces now flow into a single system. -

Set up automatic notifications - customers started receiving order statuses and tracking numbers without manager involvement. -

Implemented end-to-end analytics - managers saw real metrics: conversion rate, average order value, and salesperson performance.

After 4 months of working with CRM, the company had already seen tangible results: -

Order processing time was reduced by 20-30% (from 4-5 hours to 2-3 hours). -

Duplicate orders and picking errors disappeared. -

Conversion increased to 15% thanks to faster response to inquiries. -

Managers began spending 40% less time on routine tasks

"We used to see successful promotions as a problem - employees spent weeks dealing with the fallout.

Now the CRM automatically distributes orders and notifies customers.

This relieved the team and made scaling possible" - comments Deputy Director of Ecobar, Irina Yanuskevich.

Implementation effectiveness: how to measure it and what to consider

Half of companies do not track how service speed, data accuracy, or repeat sales change after implementing an information system.

Managers see that the system is working, but do not understand how it affected key metrics. For example, 60% of organizations rely only on vague phrases like "processes got faster" without using numbers.

So start measuring performance before the project begins - it will help you adjust course and prove the value of the investment for the business. Metrics to evaluate: - Transaction time. Measure how long processes took before and after implementation. For example, if order processing used to take 3 hours and now takes 1 hour, you have saved 66% of the time. - Financial costs.Compare manual labor costs before and after automation.

Consider not only direct savings, but also fewer errors (for example, fewer penalties for late deliveries). - Data accuracy. Check whether errors in reports, orders, or inventory records have become less frequent. - Employee satisfaction.

Run a survey: has it become easier for the team to work, with less routine work and stress? Are there any hidden pitfalls? Yes.

Do not rely only on IT metrics (for example, system performance speed).

Link each number to a business outcome: for example, "cut application processing time by 50% -> increased conversion by 15%".

Measure metrics regularly - monthly or quarterly, not just once after implementation. This will help track trends.

Also factor in hidden costs: training, support, and system customizations.

Sometimes they reduce the expected savings by up to 40%.

System launch: how to keep moving forward

Many companies forget that launching a system is only the beginning. Here's how to develop an IS after implementation:

Create a concrete plan for system development

Map out for the next year which modules you will add and which integrations you will connect. For example: - Q1: connect online cash registers. - Q2: integrate with marketplaces. - Q3: mobile app for managers.

Track technology trends

Check which technologies your competitors already use: chatbots, AI analytics, voice interfaces - and assess whether they can be adapted to your system. For example, adding a chatbot helped a logistics company reduce requests to managers by 18% and double customer response speed.

Plan a budget for future development

Set aside 20-30% of the platform's initial cost in advance for annual improvements. This will prevent the system from becoming outdated after a year with no budget left for updates.

Implementing an IS: How to Avoid Wasting the Budget

Implementing information systems is about solving specific business problems, not just installing software. The right approach helps structure reporting, spend less time on routine work, make fewer mistakes, and avoid losing customers. Below are the key takeaways to help you avoid mistakes: - Define which processes need improvement and which metrics should be measured.

Do not choose a system just because your competitors use it. - Evaluate not only the cost, but also experience in your industry, willingness to adapt the solution to your needs, and transparency of the partnership terms. - Allocate at least 15% of the budget to training and support.

If employees do not understand how to work with the system, even the best information system will not deliver results. - Run a pilot in one department - this will help surface problems before scaling across the company and save time and resources. - Budget for updates and enhancements. The information system should grow with the business, not become an obstacle to its development.

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