What to Consider When Making a Final Software Decision
Introduction Once a company has determined that it needs to update its software and has drafted a list of potential vendors, it will have to go through the process of cutting down the list of suppliers to a few contenders and make the final decision. While this host of options can seem overwhelming, construction companies can manage the process by creating a system for narrowing down the field of potential vendors. As Sourcing Innovation acknowledges, buying software for your enterprise is not a light undertaking, since every part of the process holds the potential to become “a virtual minefield.”3 Some of the key aspects of the software selection process include acquiring documentation for pricing, services and schedules, and identifying all the functions and solutions you hope to achieve from the new application. Draft a model of costs—including initial investment and maintenance fees—and develop a team of employees from across the enterprise. When assembling the team, include those who are stakeholders in the purchase as well as the people who will be managing the implementation and future use of the software.3 These staff members will be invaluable when it comes to spotlighting individual departments’ needs and calling up problems with older software in order to avoid making the same mistakes again. Getting a team involved will also ease the transition phase when it’s time to train the rest of the employees and get them on board with a new system.7 In the meetings where you discuss your software options, decide what is most important to you as a company in your next purchase. Brainstorm with the team members to identify key needs and obstacles with your current software, and identify what current situations you want to overcome with new software. Next, set your budget for the software and narrow down your options to those that fall within your price scale.
Questions to Ask Before Buying Software cost is just one aspect of the final decision. Determine what other expenses would be necessary for integrating the software with your current suite of programs and whether employees will require additional training to get up to speed. Selecting software for your construction company “can feel a little like grocery shopping on an empty stomach,” Liz Eversoll of Small Business Computing writes.6 “Everything you pass looks appetizing, and it’s hard to resist placing items in your cart. Even with the best intentions and a detailed shopping list, you usually end up with more than you need and come in over budget.” Since new software is a significant investment of money and time, and will hopefully last you for years to come, it’s vital to be thorough as you shop for and test applications.
2
What to Consider When Making a Final Software Decision
One question to ask potential vendors is what cost components will make up the total price. Some vendors charge per seat—or how many seats will be using the software at any time—while others charge by how many processors will be running the software. Still others price the software per concurrent user, which allows installations on a number of devices but limits how many people can access the software at one time.5 When shopping for a particular kind of application, such as estimating software, it’s also important to determine whether you will be able to access real-time information on materials and have the flexibility to respond to changes in labor, project scope and other variables.4 Existing hardware and operating systems are also important aspects of the decision process.2 Question vendors about memory, OS, and storage requirements, and find out how much it would cost to prepare your technology infrastructure for the new software.2 When doing the budget calculations, include what you could save in terms of labor, resources, and time with better software that allows for more efficiency. Also consider what opportunities you will gain, such as being able to devote more time and energy to revenue-generating activities rather than overhead processes.7 Other costs to keep in mind include extra licenses and necessary system and hardware upgrades, plus the actual cost of the software, support, and service fees. Unnecessary features and automatic renewals are just a few of the extra expenses for which you should be on the lookout.7
Another Consideration: Vendor Relationship, Reputation Vendor relationships matter. This does not mean just software functionality, but involves the business or vendor. Since you’re investing in a software that will hopefully stay and grow with your company for years, it’s important to be sure you are able to work with your main point of contact, the vendor.8 Ask potential vendors about the technical support their company provides. If you have questions, who will be available to answer your inquiry? How robust is the support they offer? Is it offered by phone? Online? Sage Construction and Real Estate offers a support network for its clients to help them optimize their use of the software and get the highest possible return on their investment. Users can access the knowledgebase online 24/7 and can get support through phone conversations and online chat.9 Potential buyers should also ask about how long a vendor has been in business and inquire about the company’s stability, as you need to know they will be around as long as you will in order to continue providing support and updates. Additionally, if you need to customize the system or integrate it with other software in your company, what resources are available to you? How many years of experience do they have with companies similar to yours? Are they available locally? Request references from people who use the software in their business today, particularly local companies that have a size and technological demands similar to yours.
3
What to Consider When Making a Final Software Decision
Ask about training. If you need to have users trained, does the vendor offer a program? How many options are available—online? Live? On what topics? Sage offers online training programs to help clients become even more familiar with the software.9
Conclusion When considering price, functionality, installation, training, and customer support, picking a vendor is no small undertaking. A vast array of factors play into the final selection, and knowing exactly what you need and how much you can pay will make the decision a little easier.
Sources 1. http://www.businessknowhow.com/manage/software.htm 2. http://www.suite101.com/content/20-things-to-know-a17023 3. http://www.slideshare.net/sourcingdoctor/enterprise-software-buying-guide 4. http://www.lowesforpros.com/5-questions-to-ask-before-buying-estimating-software 5. http://www.rlrouse.com/buying-software.html 6. http://www.smallbusinesscomputing.com/buyersguide/article.php/3921016/4-Tips-How-to-Buy-Small-Business-Software.htm 7. http://www.aboutsoftwareforbusiness.com/ 8. http://blogs.cio.com/thomas_wailgum/why_you_shouldnt_sue_software_vendors_even_if_they_deserve_it 9. http://www.sagecre.com/Support-and-Training
Sage 15195 NW Greenbrier Pkwy Beaverton, OR 97006-5701 800-628-6583 www.SageCRE.com
Š2012 Sage Software, Inc. All rights reserved. Sage, the Sage logos, and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc., or its affiliated entities. All other trademarks are the property of their respective owners. 12-02029 07/12
4