Author: Lorraine Pauls Longhurst Published: LPLSC Blog Date: 6 February 2009
Selecting and implementing enterprise software may be the best approach to solving a business problem within the organisation, but how can you ensure that you select the right solution? In my experience designing and selling software at a number of large software companies, I am very aware of the ‘tricks’ software companies play to ensure they win the deal, often at the detriment of the client.
This doesn’t mean that all software companies are ‘bad’, but it does mean you must be well-informed when going through the selection process and know exactly what questions to ask to ensure you select the right software for your organisation.
I have outlined below the recommended steps you should take when selecting Enterprise Software:
Making The Decision To Go Ahead
If you are considering Enterprise Software, there are certain business processes within your organisation that would be automated by this software. To make a decision on whether to move ahead with the selection process, it is important that these processes be mapped out and analysed.
Each process must be identified and diagramed using a flow chart. This is called the ‘as is’ process map and issues with this current process should be outlined. Then you must anticipate how the new software would be used and create the ‘to be’ process map.
Estimating the return on investment of the new process will help to quantify the value to be gained by acquiring the software.
Gathering Requirements
The next step in enterprise software selection is to re-visit the processes that were mapped above and to determine if process re-engineering should take place rather than just automating an existing process.
It may turn out that there are specific processes that are best kept manual if they are not easily automated by packaged software, or if customisation of the software is either not possible or too much effort for the small return.
Technical requirements should also be taken into account here including whether hosting or ‘Software as a Service’ is required versus a traditional software implementation.
Creating a Formal Tender
Once the requirements have been gathered a formulaic, non-biased evaluation method helps to narrow down the list of vendors and ensures that all requirements across the organisation are taken into account.
It is important if an actual change to the software is required that the vendor agrees (in writing) that any changes to the software will not be affected when the software is upgraded at a later stage.
Evaluating The Vendors
Once the vendors have been narrowed down based on the tender, the short-list must provide a demonstration of the software.
Scenario-based demonstrations serve as the evaluation with formal grading of each vendor’s system and its ability to meet the requirements within the hospital’s context.
Every requirement should have a weighting associated with it to identify the importance of the requirement and enable the participants to score the demonstration in a non-biased manner.
Negotiating The Contract
Contract negotiations should involve both software and services components. If customisations are required for the software, it is important that a lawyer be involved to ensure any competitive advantage gained through the change is retained.
For the services component, if the vendor is not able to provide a detailed plan, invite them to come in for a week of paid high level discovery to enable them to provide an exact estimate. It must be determined whether a ‘fixed price’ or ‘time and materials’ contract is better suited for the implementation.
In summary, following the above defined steps will enable you to follow a ‘best practices’ approach to software selection that will help you to ensure you have selected enterprise software that suits your requirements and you are gaining more benefits than the money you are investing in its cost and implementation.
If you would like to learn more please Contact Us at LPL Software Consulting.
