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Choosing the right software for your business can be challenging. Although there are best practice guidelines for effective software selection, sometimes it helps to be aware of the pitfalls – the things that can and do go wrong most often.
So, to help compile a useful list of mistakes to avoid, we recently reached out to our LinkedIn community with the question: “What are the top 10 mistakes people make when choosing business software?”. Thanks to everyone who contributed their practical insights and experience.
Here is our editor’s view on the top 10 mistakes people make:
- Not defining your objectives and requirements clearly
- Confusing systems with behaviour
- Buying into the hype
- Failing to invest adequately in internal change management efforts
- Underestimating the setup and customisation efforts needed
- Not enough consideration of support & maintenance issues
- Ignoring the hidden end-of-life costs of software
- Excessive dependence on a single vendor
- Letting vendors drive the selection process
- Ruling out some software options too early without good cause
If this list piques your interest, go to LinkedIn to check out the full discussion. Many people who contributed gave valuable detail that will help you explore the issues further. You might even like to join in the discussion.
What do you think? Are there others that should be here? Disagree with any of the above? Have your say by commenting below…
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After recently completing some customer research and marketing planning*, Software Shortlist is now gearing up for its next phase of growth. More on that in a future post because today I want to share some thoughts on “software conversations” and how they relate to our role at Software Shortlist.
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Talking about software selection…
Software selection is a challenging process – both for businesses looking for software, as well as for IT vendors and service providers offering their solutions. It’s widely recognized that business purchase decisions are typically more complex than consumer ones (more people involved, longer lead times, more factors to consider, etc). What’s less understood is that, despite the formal processes used, business decisions are not as “perfectly rational” as we may like to believe.
In a way, this shouldn’t be surprising. Just like consumer decisions, the human element is critical in business decisions. Buying something is risky, which is why trust, credibility, and relationships are so important. Plus, one of the key ways that people seek to reduce the risk of a purchase decision is to talk to others.
For this reason, conversations have a particularly important role to play in software decisions. Conversations are about people connecting with people and sharing information. They happen online – e.g. asking your network on LinkedIn which timesheet software they use – as well as offline, such as talking with colleagues, peers, vendors, and others whose input and perspective you value.
Relevant & informed conversations
As we listened to our customers and reflected on what we do here, we recognized that the role of Software Shortlist is enabling relevant and informed conversations on software, with the ultimate goal of an intelligent purchase decision being made.
For example, we often converse directly with you, via a post on this blog, a comment on LinkedIn, an article in our email newsletter, or by publishing our independent reviews. We aim to be a trusted voice in that conversation, one that helps you progress your thinking on software selection.
And if we do our job properly, that initial conversation should spark other conversations, for instance when you discuss software requirements in more depth with work colleagues, or connect with relevant IT vendors or service providers to understand whether their solution may fit your needs.
Sometimes talk is action
Because you don’t just need information. To make an intelligent purchase decision, you need to connect with real people for relevant and informed conversations. To gain information and share learnings. To understand the situation. To explain your needs. To gauge credibility. To build relationships.
So please get involved in the conversation. We’d love to hear from you….
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* A special thanks to COMET for helping fund our market research & strategy development, the good folks at Bite Communications for working with us on it, and of course all of our customers and fellow conversationalists who so generously shared your time and thoughts with the team.
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Have you been given the task of finding, evaluating and recommending software for the small business where you work ?
It’s a great opportunity ahead of you but it also presents some risks and pitfalls that need watching. The search process itself can also be a big hidden cost. Here are a few things you should be aware of before you jump into the process…
Deciding on software for small business
- Owners or partners of a small business often delegate the software selection process to employees they see as more technically-savvy or more organised than most. Your job is to present a shortlist of recommended options, to help them make the final decision. Think of the task as a vote of confidence in you.
- Employees made responsible for software selection often feel overwhelmed and unsure where to begin. There are so many products available, and you may not have been through a process like this before. That’s normal.
- A sense of personal risk is often involved – this is a chance to prove yourself but conversely you don’t want to make a recommendation that backfires on you. You don’t want to be “that guy” who suggested buying the software everyone hates.
- Research shows that owners of a business choose software differently than managers. [ref 1] For instance, managers often think the price and popularity of a package are critical … but business owners rate those amongst the least important! Research suggests owners tend to be more strategic, considering more factors and weighing them differently than managers do when evaluating software.
What does this mean for you?
Firstly, it means you should take the task seriously because the owners of the business certainly will.
You should also look for ways to educate yourself about good software selection practices and involve outside experts or information sources if possible. Adhering to a solid process gives the owner confidence, and can help you manage the many stakeholders involved.
You should also discuss what the important factors are with your boss and other stakeholders, and ensure that you are transparent in how you arrived at your recommendations. This focuses the discussion on the evaluation process (not just the end outcome) and not only does it help you choose software more intelligently, it also protects you from any perceived personal risk.
How Software Shortlist can help
Software Shortlist provides a “shortlist + compare” tool that can help you recommend software for your business. It steps you through a more robust software evaluation process than small businesses typically use, but it is still simple and easy to use for non-IT experts.
Software Shortlist also gives you the flexibility to adjust the weighting of different factors (e.g. price, ease of use, scalability). So if your boss turns out to have a different view on priorities you can easily adjust your shortlist accordingly. Plus, we’ve screened out products that aren’t up to scratch and have conducted independent reviews on each software product included in the comparison service. User reviews are available too to give you an additional, external perspective.
Go find that software
I hope this post helps you understand a bit more about the challenge and opportunity ahead of you in choosing software for your small business.
Why not let us know how it goes, and share your thoughts or experiences below so others can benefit too?
[ref 1]: P.Y.K Chau “Factors use in the selection of packaged software in small businesses: Views of owners and managers,”Information & Management 29 (1995) 71-78
