6 Essential steps to help select the right software supplier

1. Identify Potential software suppliers
There are many ways to research the market to understand who is who at the time you are ready to begin your selection process. To research the market, understand the solutions, shortlist potential suppliers and organise the first round of meetings will take about 3 months. You can visit exhibitions, use buyer’s guides and utilise the internet or let someone else do it for you. IT-shortlist is the UK’s only company that offers this service free of charge. We specialise in working with software suppliers that have solutions for small and medium size businesses. We know the suppliers for any IT project from very broad to very specialist. www.it-shorltist.com.

Software suppliers are split into tiers. Global companies are considered best served by tier 1 and tier 2 suppliers. Traditionally, tier 3 suppliers have served smaller companies. This is partly due to smaller investment and also smaller businesses are thought to be less complex. In recent years many of the tier 1 and 2 companies have been developing powerful systems on a smaller scale to give smaller businesses the opportunity to buy into scaled down powerful systems at very affordable prices. These systems are pre-packaged and know as out of the box solutions, but very cleverly the software suppliers have left 20% of the system available for your own configuration to make it fit your business. The market is continually changing and it really is worthwhile working with an expert like IT-shortlist to ensure you are selecting from the very best solutions for your project.

2. How to select from you final shortlist
Speak to the reference companies. You’ll be amazed at how much you will learn from them. Tell the reference a bit about yourself first and where you are in the process and share any concerns you have with them. Have a list of questions to ask so that you are referencing very specific skills of the supplier company.

3. Prove the system works
Prepare a script. A script is a day in the life of your business that contains the most important business processes with sample documents and reports. The script should contain sample transactions that will be processed through the entire system. Ask your final shortlist of 3 to prepare a proof of task. This is time consuming for them to prepare and for you to sit through the demonstrations but it will give you the confidence that the system works for you.

4. Contract
If you don’t have contract experience in-house engage a specialist – make sure they specialise in IT contracts.

5. Understand the total cost of ownership (TCO)
To avoid any nasty surprises make sure you understand all the costs including; licence fees, implementation – consultancy days, support, hardware, training, networking, communications and maintenance etc. Ask the supplier to cap as many of the cost as possible but have a contingency plan for any unforeseen items. It is a good idea to ask the referral customers if the supplier was able to deliver within the agreed budget.

6. Boardroom Pilot
If you are making a considerable investment, plan to include a boardroom pilot. This is a period of time that you and the team can use the system before you sign the contract to purchase it. It is important that you understand fully the capabilities of the system and if there are any workarounds as an option to expensive customisations. You will have to pay for the software supplier’s time but ask for a fixed price as one the deliverables of the pilot.