Software selection: 5 tips for making the right choice
As a general rule, more choice is better than less. This is particularly true in the corporate world, when it comes to tenders or pre-purchase comparisons. Enterprise software is an expensive purchase over several years, and having the right solution for your company's needs is of crucial importance. Limiting your options from the outset simply doesn't make good business sense.
Contents
- Demand more solution choice
- Beware of software recommendations
- Think carefully about who you choose to oversee the selection project
- Don't focus on the vendor's brand image
- If it seems too complicated, don't do it alone
1. Demand more choice of solutions
When it comes to software selection, the goal in the early stages should be to keep your search as broad as possible, so as not to limit your company's options. It's best to start with a clear idea of your company's needs. This includes all types of end-users (think beyond your department). Most types of enterprise software involve and are used by people in different parts of an organization, sometimes even outside it (think, for example, of contractors/suppliers accessing a supply chain management system).
Instead of approaching just one or two software vendors in the early stages of your search for a new software product, you should start by thinking about the type of software solution your organization needs. For example, do you need recruitment software, or would a comprehensive human capital management (HCM) system be more suitable? Consider how the software will be used by each stakeholder group.
Sometimes, an important choice can be overwhelming. While it's true that having more options can cause some confusion, it also means that, given the right evaluation, your company will be far more likely to select a solution that works very well for all stakeholders. Don't worry: as soon as you start gathering detailed information about what's really needed, the choice will immediately narrow down.
2. Beware of software recommendations
A common scenario, and also a frequent pitfall, is recommendation by individuals. Someone in your organization, or even a trusted third party, recommends a specific product. In this case, the potential pitfalls are linked to the person behind the recommendation. Here are a few warning signs to keep in mind:
- A specific software publisher has recommended the solution. It's highly unlikely that he'll recommend someone else's product, and he'll obviously claim that his solution is "perfect" for your company's needs. The real surprise would be to hear him say the opposite and recommend the products of one of his competitors. This is not necessarily a lack of overall honesty on his part. It's logical that he knows his product inside out, and this perspective will be influenced by his in-depth knowledge and experience of his product. However, his point of view is limited. Keep this in mind.
- Your trusted colleague works for another company. Ask yourself if their company is exactly the same as yours, and not just in terms of sector and size: do they face the same challenges, have the same competitors, and have the same type of employees? The more similarities there are, the more logical it is to consider this person's suggestion in your selection, but don't limit yourself to this one choice. Don't forget that, in all likelihood, there are significant differences between this company and yours. You need to choose software for your organization based on its unique needs.
- The recommendation is based on information that may be obsolete, even if it's only a year or two old. Enterprise software is developing rapidly. Yesterday's unique solution may already have several valid competitors, and one of these competing systems may be better suited to your business, or may offer what you need at a lower price. Keeping abreast of the latest developments in enterprise software is not a bad idea, but remember that the latest news may not be the most up-to-date for very long.
- Be wary of the colleague in your company who may not have all the facts. Once again, it's a good idea to give serious consideration to his or her suggestion, but don't make it your only option at the start of the process. Don't forget that this person may only represent one of the stakeholders, whereas you need to get the point of view of all those affected by the new software. A note of caution is in order when your superior is the colleague in question. This article offers some useful advice on the best approach.
In summary, recommendations can be important, but they are often based on more emotional factors, such as the desire to stick with what is familiar. Software selection decisions should be based on facts, not on emotional considerations or on the traditional approach of the past. Include the recommendation of someone you trust in your selection, of course, but don't limit your choices to this suggestion alone, even if you're fairly convinced that this specific solution might be suitable. You may find an even better option, a different solution that's cheaper, or one that simplifies implementation and training for all your users. The only way to be sure is to find out.
3. Think carefully about who you choose to oversee the selection project
A proper software selection project starts with a thorough assessment of your company's needs. It's important that someone is appointed to oversee the whole process, from start to finish. The assessment should include the needs of all stakeholders, not just the core group. One way of avoiding an overly restrictive approach to just one or two suppliers is to ensure that the needs of all stakeholders have been taken into account.
Beware of the "expert" who knows his or her field inside out, but may not be aware of the needs and concerns of your company's users. This person may be very good at identifying basic requirements, but it's vital to get input from every area of the company that will use or be directly impacted by the new software.
Sometimes this in-house expert is an IT professional. This person may have a good knowledge of the enterprise software market, and be proficient in topics such as technical support, deployment platform, compatible operating systems, etc. He or she may not be as well versed in the new software as you are. It may not be as well informed about the needs of different stakeholder groups.
Let's take the example of HCM (human capital management) software. Your human resources department will most likely be the main driver for the purchase of this software. It may also want to offer company users more self-service options with the new HCM system. These questions and requirements should therefore be part of the selection process, not just the technical details that an IT department employee might focus on. This doesn't mean that an IT person can't be an excellent coordinator: they may well be the best choice to manage your selection process. You just need to make sure that he or she goes beyond his or her own point of view and takes into account the other stakeholders.
What about external consultants? It may be worth using an external consultant to guide your software selection project, but make sure they are impartial. Remember that the aim is to consider all valid possibilities among the various suppliers, so as not to limit your options, even in the early phases.
If the external consultant you're working with represents one or more suppliers, it's unlikely that he'll consider options outside the list of suppliers he works with. Make sure that the person you choose to assist you is impartial and doesn't pay attention to brands.
4. Don't focus on the publisher's brand image
Today's promising publisher may be tomorrow's powerhouse. Certain factors are important, such as technical support. On the other hand, a vendor's reputation matters little, if at all.
Choosing enterprise software is rarely a question of prestige: a prestigious business address, impressive reception and conference facilities or even an attractive brand name should have little influence on the purchase. It is, or at least should be, a practical decision. Does the software provide all the functions your business requires? Is it easily adopted by users? Is it reliable? Does it add value in terms of return on investment (ROI)? These are the most important factors.
The pace of change in enterprise software is extremely rapid. Likewise, it is generally influenced by emerging technologies and evolving business needs on the part of the customer, not by software developers. The solution that everyone was adopting 5 years ago, or even last year, may no longer be right for your business, assuming it ever was. Remember, it's fundamentally about finding the best answer to your organization's requirements.
5. If it sounds too complicated, don't do it yourself
Depending on your company's culture, your own level of expertise and familiarity with software selection, not to mention many other factors, some form of outside help can be extremely beneficial.
As mentioned above, if you're considering using an external consultant to guide your software selection project, make sure you find one with impartiality and experience. Make sure you use a consultant who is not beholden to a few software suppliers.
It's true that calling in a consultant has its costs, but the ROI is enormous if that person can tell the difference between choosing a poorly adapted system with a problematic implementation, and buying a system that simply works as soon as it's adopted. A typical enterprise software solution costs between several hundred thousand and several million euros. This is certainly a very significant capital investment. It is also expected to last, supporting many of your critical business processes, for many years. Compared to the price of the system, the cost of an expert consultant is minimal.
Taking TEC as an example, it's worth noting that, as an impartial consultancy, TEC is not involved with any specific vendor or software category. TEC's Selection Services team also benefits from extensive and in-depth experience, having supported several hundred companies for over 20 years.
What's more, a software selection team can act as your company's representative during negotiations with the supplier you finally select. This service alone often pays off in terms of ROI.
If your budget is limited and external consultation is not an option, there are still many levels of service available. Even something as simple as a brief telephone consultation or the use of TEC Advisor, TEC's online software selection tool, can make all the difference. What's more, TEC also offers comprehensive tender templates that can be very useful during a software selection project.
Article translated from French