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It\u2019s a sinking feeling. You realize that you\u2019ve lost countless hours. Thousands (if not hundreds of thousands) of dollars are simply gone. Everyone blames you.<\/p>\nIt\u2019s a sinking feeling. You realize that you\u2019ve lost countless hours. Thousands (if not hundreds of thousands) of dollars are simply gone. Everyone blames you.<\/p>\n
Business software purchasing mistakes are expensive (and embarrassing) lessons. Especially if you\u2019re the one making the decision. For you, it\u2019s more than a software purchase. You stake your pride and reputation to that purchase. If the software doesn\u2019t meet expectations, it\u2019s on you.<\/p>\n
What makes a software purchase go south? The reasons vary. Maybe the software didn\u2019t live up to the hype. Maybe it became prohibitively expensive over time. Maybe it couldn\u2019t meet your company\u2019s future needs. I could go on. Whatever the reason, it\u2019s always an expensive, embarrassing lesson. <\/p>\n
The question: How can you avoid these mistakes?<\/p>\n
If you\u2019re in charge of software purchasing, I\u2019d like to help. While every business and situation is different, there are a few areas every business must consider before purchasing business software. To help you identify those areas, I\u2019ve solicited input from experts on the subject and compiled their advice below. Here are 10 tips that will help you purchase software that you won\u2019t later regret. One of the biggest mistakes companies make in a software purchase: Focusing on the up-front price. They compare vendors based on upfront cost, rather than long term cost. Huge mistake. <\/p>\n \n\u201cToo many times companies look at the initial purchase price of a solution and not the 5-year cost,\u201d says Ron Thompson, Jr., General Manager at DataBank IMX<\/span><\/a>. \u201cWhen implementing a new software or solution, it is never a short term investment. You need to look at the additional rollout cost, software maintenance, and infrastructure (if not hosted) cost for a minimum of 5 years. This will give you a true comparison when you are evaluating multiple products.\u201d\n<\/p><\/blockquote>\n Many companies make the mistake of departmentalized software purchasing. They purchase software for a specific department or segment of their business, without considering if other areas of the business might benefit from this type of solution.<\/p>\n \n\u201cCompanies should always look at new software solutions as an enterprise application \u2013 why not leverage an investment you already made and not get in the dreaded syndrome of 101 systems running your business,\u201d explains Thompson. \u201cBut, with this being said you need to start small – one application or one department at a time. Getting a win in one department helps achieve buy-ins from the rest of the organization that the technology actually works.\u201d\n<\/p><\/blockquote>\n Businesses often go into a software purchase with their present needs in mind. They want software that solves their current pain points. But, what happens in a year, when they have new pain points? If they don\u2019t plan ahead, they\u2019ll need new software.<\/p>\n \n\u201cBy looking at the enterprise solution, organizations will see if it\u2019s a long-term fit,\u201d says Thompson. \u201cDon\u2019t get wrapped into a niche solution that only does one thing. Not only look for solutions that can help with the pain points you are experiencing today, but can help solve other department challenges in the future. For example a mortgage company may be looking to go paperless with its mortgage processing process, and would later like to automate their AP\/AR processes. They need to ask themselves if other products on the market can help with this current pain point and help them automate other department processes in the future.\u201d\n<\/p><\/blockquote>\n At a conference a while back, I remember a booth visitor expressing surprise upon learning that our software actually included the features that we advertised (a novel idea). Apparently, he had visited other vendors who were advertising features that weren\u2019t actually available yet–which is unfortunately, an all-too-common practice.<\/p>\n \n\u201cSome software companies try to convince you that their software will have the functionality you\u2019re looking for in the future,\u201d explains Brian Kelley, CIO of Portage County<\/span><\/a>. \u201cThis is called \u2018vaporware\u2019 as what you really want does not exist! Be cautious of such promises that may never materialize!\u201d\n<\/p><\/blockquote>\n Have you ever heard a software vendor list all of their drawbacks and faults? Neither have I. So, how do you find an honest assessment of the software? Ask their customers.<\/p>\n \nKelley\u2019s advice for obtaining honest feedback: \u201cQuery the company\u2019s existing clients via phone, questionnaires, or a visit to find out how the software really performs, how well the company supports what you are purchasing, and their overall satisfaction.\u201d\n<\/p><\/blockquote>\n \n\u201cMy advice is this, when trying to decide on a software package sign-up for competing pieces of software,\u201d says Allan Branch, CoFounder of LessAccounting.com<\/span><\/a>. \u201cIn the first few minutes of use, submit a few general questions, even if you already know the answers. This is a test to see how fast the support responds with the correct answer.\u201d\n<\/p><\/blockquote>\n In my experience, the level of support offered by the vendor indicates their perception of their customers. If they outsource support, or send support calls to a low-level phone service, they\u2019re only concerned about cutting costs–not about their customer\u2019s success. Rather, seek out vendors who staff their support desk with actual product experts. Excellent customer service goes a long way towards the software\u2019s success.<\/p>\n Adaptability is absolutely essential in business software, on two separate levels. First, with technology evolving at its current pace, modern software today could very well be obsolete in 5 years. How will the software adapt to changing trends? Second, your business will change and (hopefully) grow in the coming years. How will it adapt to meet your needs and scale with your company?<\/p>\n \n\u201cSimply knowing your long term needs doesn\u2019t guarantee that software will be able to meet those needs later on,\u201d says Reuben Yonatan, CEO & Editor-in-Chief at GetVOIP.com<\/span><\/a>. \u201cTechnology changes rapidly; therefore, businesses often find themselves with outdated tech quickly. Be sure the software you select is flexible and scalable\u2014allowing for advancement and updates as new extensions\/functionality become available.\u201d\n<\/p><\/blockquote>\n There\u2019s a term in the business software industry that I absolutely despise: Planned obsolescence. It\u2019s the practice of building software with a limited useful life. In other words, it ensures that the software you buy today is outdated in a few years–so you must buy new software. Great for the vendor, but bad for you. <\/p>\n \n\u201cHow long do you need this software to last ideally?\u201d says Yonatan. \u201cLook for the shelf life of different software and see how often they update, issue new versions, add extensions, etc. In looking at this, you\u2019ll be able to better decide if the product\u2019s shelf life is aligned with your wants.\u201d\n<\/p><\/blockquote>\n Yes, the software may have everything you need, but are all of those features included in the base price? <\/p>\n \nYonatan explains: \u201cSoftware typically has a base price, but can often incur additional fees\u2014multiple user charges, add-on\/extension feature charges, etc…\u201d\n<\/p><\/blockquote>\n The problem is, some companies just assume all of the products features are included in the price. That\u2019s not always the case. Before you buy, make the vendor list every feature not included in the base price. You might be surprised how quickly the price goes up.<\/p>\n Back in the 80\u2019s, I remember an \u201cindustry-standard\u201d CASE tool for the IBM AS\/400. They touted their massive customer list and their low support call volume–which could only mean their customers rarely had issues…right? <\/p>\n Wrong. In reality, they distributed their software as a package with other popular hardware and software, which explains the large customer list. The software itself was so difficult to install, that most \u201ccustomers\u201d never even used it–which explains the low support call volume.<\/p>\n Why am I telling you this story? If a company just blindly selected the \u201cindustry-standard\u201d CASE tool at the time, they were in for a rude awakening. Don\u2019t fall into the same trap.<\/p>\n \n\u201cSimply going with software that’s considered industry standard can be a big mistake if it doesn’t fit company needs,\u201d says Andrew Schrage, Founder of Money Crashers<\/span><\/a>. \u201cThe research process should include, but is not limited to, the history and future of the software organization, and a full review of any ancillary facets of the product, such as its overall complexity, its level of customer support, and whether it “fits in” with company culture.\u201d\n<\/p><\/blockquote>\n Software purchasing mistakes are never cheap. I believe the points listed above will help your company avoid such mistakes, and choose software that helps your business for a long time to come. So, what do you think? Would you add anything?<\/p>\n","protected":false},"excerpt":{"rendered":" It\u2019s a sinking feeling. You realize that you\u2019ve lost countless hours. Thousands (if not hundreds of thousands) of dollars are simply gone. Everyone blames you. Business software purchasing mistakes are expensive (and embarrassing) lessons. Especially if you\u2019re the one making the decision. For you, it\u2019s more than a software purchase. You stake your pride and …<\/p>\n
\n<\/a><\/p>\n1. Initial price isn\u2019t everything–look long term<\/h3>\n
2. Look at the enterprise–but start small<\/h3>\n
3. Focus on both present and future needs<\/h3>\n
4. Be wary of \u201cfuture features\u201d<\/h3>\n
5. Talk to existing clients<\/h3>\n
6. Test their support<\/h3>\n
7. Look for adaptability<\/h3>\n
8. Check the shelf life<\/h3>\n
9. Watch out for additional fees<\/h3>\n
10. Don\u2019t just go for the \u201cindustry standard\u201d<\/h3>\n
Wrap up<\/h3>\n