Mortgage Technology, January-February 2005 issue - Implementation Questions You Should Ask
January 31, 2005 - Following implementation of a system by Irvine, Calif.-based Portellus that took a year and a half from start to finish, home-equity specialist SecuredFunding, Costa Mesa, Calif., is in production with a system that improved its operations so much that "we had to step back and say, "How do we reorganize to take advantage of this?" according to spokesperson Brian King.
To help other lenders enjoy an equally successful implementation, Secured Funding suggests that they start by addressing 12 questions:
- RELIABILITY - Verify the vendor's reputation. Are they just selling you a system or are they going to work with you and stand behind the product? Do they back hardware and beta tests with service and flexibility of redesign on interfaces?
- NUTS AND BOLTS - What programming language is the system written in? Is this a foundation that can be scaled up or are you implementing a system that will become obsolete in the future?
- SUPPORT - Who will be accountable for Level 1 & II technical support, you or the vendor? Go with hardware providers you know will be responsible for supporting the technology.
- REALISTIC EXPECTATIONS FOR ROI - What will the technology really do for you and what aspect of your business will it affect? Quantify and Qualify expectations and how to measure results per business unit. Set benchmarks of service, performance, speed and accuracy and don't forget to build in reports to measure this through the system.
- COST TO THE BUSINESS - What will you have to give up? The price tag for the technology isn't the final price you pay. Downtime, delays, functionality and business interruptions from implementation and after the production launch are important factors to consider. For example, an inexpensive system may create costly complications after the implementation.
- TRAINING AND ROLLOUT - Do you have staff that can manage the implementation project and train your staff so that the transition is seamless? Underestimating time and training costs for implementation are common traps. Inventory staff expertise and consider hiring a dedicated trainer with a dedicated training room.
- OPEN SYSTEM OR PROPRIETARY - Will an open system or proprietary system serve you better? Keeping in mind that proprietary software may be more specialized, you'll need to examine your long-term plans. An open system built on Oracle or Windows has more flexibility, requires less specialized training to maintain, and can be adapted or merged with other systems in the future.
- BUY VS. BUILD - Do you purchase an off-the-shelf product or design your own? You have two choices: you could buy and integrate new systems or you can build and either extend your in-house systems or build a customized loan-closing platform that will allow you to grow and "snap in" modules to support your business growth.
- PLANNING - Do you have a "technology" roadmap? In order to get the biggest return on your investment, whether you buy or build, start with a technology roadmap that drives your business strategies and vice versa. Mortgage lending is complex and with more technologically mature systems available today, mortgage lenders will find themselves filling in the gaps to create a true end-to-end solution.
- YOUR TEAM - Do you have a project team to drive and deliver this project? Whether you build or buy this project is a huge undertaking that requires a full-time project manager. Will your current IT staff be able to manage the implementation in addition to their current tasks? Specialized project managers often make the difference between a good project or a costly project.
- INTERNAL OPERATIONS - Are you willing to change your internal operations in order to adapt to the technology? Honestly appraise your company's culture and internal response time. Assess whether your company can leverage the technology, or if the technology will overwhelm your company's ability to adapt within the required period to make the transition beneficial.
- TECHNICAL SERENDIPITY - Are you watching for improvements you didn't expect? Keep in mind that you may find shortcuts and opportunities to improve your business as you implement.
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