Investing in software can work wonders in helping deliver projects on time and on budget. However, a significant percentage of systems purchased are never fully implemented, or do not deliver the intended results.
Here are the five most common mistakes made when selecting software.
1. Failing to define key needs. It is extremely unlikely that a company will use more than 50 percent of any software product's capabilities. Vendors often profess to specialize in many things, so firms must ensure the vendor's strengths match their key needs.
To start, management should develop a comprehensive list of needs. Then, gradually narrow the list down to no more than five. If the list contains more than five, companies run the risk of diluting the important needs and increase the odds the software may not be the best solution.
Next, make sure the five needs are well defined. For example, a preliminary definition may be: improve communications between the office and the field. A better definition is: receive daily task updates and purchase orders from the field.
2. Failing to prioritize needs. Not all of the identified needs will be equally important. List the needs in order from must-haves to nice-to-haves, or from most important to least important.
3. Evaluating too many vendors. Firms should choose no more than three vendors at the start of their search. It can become difficult to remember who does what if too many vendors are considered at once. If none of the vendors meet 80 percent of the firm's key needs, dismiss the companies and begin investigating several more.
4. Straying from core needs during evaluation. When reviewing a software vendor, have the vendor step through how its system handles the firm's greatest need. Move on to the next need and evaluate in a similar manner. Remember, if the vendor offers a unique feature, question whether it helps meet the firm's specific needs. If not, do not include it in the evaluation.
5. Failure to check references. After selecting a vendor, ask for a list of existing customers that most closely match the firm. Talk to these references about their experience with the vendor. If the feedback is generally positive, the firm should move forward; if not, it should consider its second choice.
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Friday, September 3, 2010