Structured Selection Process | APPLICATION PORTFOLIO

When evaluating software packages, you can save a considerable amount of money by doing it correctly and selecting the right tools. It saves you from re-implementing a different tool a few years down the road, which can be a tremendous expense. It is often helpful to engage the assistance of a consultant who uses a structured selection methodology and is experienced in selections and in the particular application area. They are able to save you significantly more than their cost by helping you select the right tool, engaging support throughout the organization, and facilitating negotiation strategies throughout the selection process. However, be cautious about hiring service providers who have implementation resources in one of the reviewed packages as they may bias your selection. Remember, implementing and supporting new software is an expensive proposition, so it is well worth the time and money to make sure it is the right direction before beginning implementation.

The following are tips to include in your selection methodology to reduce overall costs:

• Make sure you cast the net broad enough. Do not just evaluate the packages that you have heard about or read about in magazines. Seek the help of experts and open your evaluation to additional options such as software-as-a-service (SaaS) and other options covered at the end of this chapter. It is much easier and cheaper to cast the initial net broadly through a long list, and then narrow your search in order to consider all possible candidates and a reason for eliminating each one. The mistake many organizations make is that they start with a relatively short list and end up adding candidates late in the process because vendors pop up with no compelling reason for elimination. Be a thorough and educated buyer.
• Your first contact with a vendor is not too early to start planting the seeds for the negotiation process. Have a plan and strategy for negotiating the best price. That said, licensing software is nothing like buying a used car. View your vendor as a partner, not a car dealer.
• Carefully identify your requirements and prioritize the needs from the wants. Educate the users about the possibilities before participating in demos so that users do not discount the software because it does not do it the way they do it today.
• Clearly identify the business goals and objectives you hope to achieve with the new software in order to align expectations.