Business software: A considered purchase is better than impulse purchase

 

Most people would not spend their hard-earned money on a new car if they did not know what type of vehicle they wanted, or what they needed the car to do. They would not buy a racing car if they needed a local runabout. It is likely that they would consider the following factors in a rational way, and discuss them with the key affected stakeholders (such as their partner, the bank manager an insurance broker etc):

Business software: A considered purchase is better than impulse purchase

 

Most people would not spend their hard-earned money on a new car if they did not know what type of vehicle they wanted, or what they needed the car to do. They would not buy a racing car if they needed a local runabout. It is likely that they would consider the following factors in a rational way, and discuss them with the key affected stakeholders (such as their partner, the bank manager an insurance broker etc):

 

• ·         The requirements the car must meet
• ·         The criteria on which decisions will be made
• ·         The features they would like the car to have
• ·         The ways in which life would be better if they had the car
• ·         The cost of ownership
• ·         How to fund the lifetime costs.

 

Most people buy cars with far more rationality than most organisations buy software. Many software purchases, even big ones, are made without rational consideration of all the relevant factors by all the relevant people. The results are wasted money, lost benefits and damaged businesses.

 

The money wasted in the UK alone on inappropriate software purchases is probably enough to buy 30,000 brand new family cars each year.

 

Much of the wasted money and resources could be avoided by taking a project-based approach to selecting the right software. Below is a method which you may choose to use when you are next considering a software purchase.

 

First process – Preparation

 

Essential groundwork to prepare for the project will include identifying the relevant people, key business objectives and requirements.

 

• ·         Business Objectives

Clarity of what the business is trying to achieve and how the proposed software or systems will fit into the bigger picture.

• ·         Stakeholder Analysis

Clarity of who will be affected by the new software or systems, and how their voices will be heard in the decision making process.

• ·         Planning

Making a plan for whom will do what, when, where and why during the rest of the software or systems selection and implementation. Complex software and systems selection exercises can require considerable effort and investment, excluding costs of the actual software or systems. (If you want the project to go to plan, you need to have a plan)

• ·         Initial business case

An early analysis of the objective and subjective reasons for change in terms of introduction of new software or adoption of new systems or even both, including anticipated lifetime costs and benefits from its use. This analysis will be refined later in the process as more information becomes available. It is essential to understand the real business case for any change, just so that you can justify the project to the business and yourself.

• ·         Functional requirements analysis]

Clarity of what the software or systems functions and features are required to be for the different groups of people whom will interact with them.

• ·         Benefits analysis

Clarity of how the organisation will benefit from different features of the new software or systems, so that priorities can be set and compromises made objectively.

 

Essentially before proceeding to the next stage you need to understand why you are doing so and rigorously testing the business case for moving on, ensure when doing this you consider whether the business will adopt any such change.

 

Second process – Criteria and Weighting

 

This process covers agreeing what factors will be taken into account when evaluating different software or systems options, and how important each factor is in business terms.

 

• ·         Criteria Definition

Takes input from affected people to build a list of criteria used to evaluated different software or systems options.

• ·         Weighting Definition

Prioritisation of criteria against business benefits so that rational, business-centric choices can be made.

• ·         Business Review

Review of the criteria and their relative priorities to ensure that the Criteria and Weighting is sensible overall

 

It is essential that you review the business at this point and consider the different criteria points and weight them accordingly. You do not want to consider a jumbo jet when one seated spitfire will do, especially when it is going to fight in an air battle in the second world war, I am sure you get the message FIT FOR PURPOSE & A PURPOSE THAT FITS.

 

Third process – Selection

 

The selection process involves the identification of potential software or systems solutions, decisions on whether to make, buy off-the-shelf or buy off-the-shelf and modify, selection of the optimum solution and actual procurement.

 

• ·         Market analysis and final approach

Building clarity on what products, suppliers and integration services are active in the market place, and deciding how to create a solution in terms of off-the-shelf, customised or bespoke development.

• ·         Scoring

Evaluation of how well different software options meet the business needs.

• ·         Decision and procurement

Final decision-making based on the updated Business Case and the results of scoring

Purchasing and contracts with the chosen supplier(s).

 

Ensuring you get the correct solution and partner or partners is essential, you need to know though that it is your business and you must be the project champion that drives the project through with all of the team both internal to your business and from your external business partners.

 

Fourth process – Implementation

 

The implementation process involves monitoring any development and implementation to ensure that expected benefits are becoming reality, followed by review of actual benefits achieved some time after a period of use.

 

• ·         Implementation and Review

Tracking of feedback and benefits to ensure business case is coming true, and taking corrective action as necessary.

                Review of benefits and learning points after a period of use.

                Lessons we have learnt from this project, which will benefit future projects.

 

Summary

 

The above is a set of steps and techniques for objective evaluation of different software and systems solutions

 

All steps and techniques are established good working practices, and should be used to some extent in all cases. However, they must be tailored and scaled as appropriate to avoid bureaucracy and allow flexibility.

 

The above process works by defining a Criteria and Weighting model that lists:

• ·         The factors to be taken into account
• ·         Their relative importance to the business
• ·         How different options score against the criteria

 

The preparation process

 

First process – Preparation

 

Essential groundwork to prepare for the project will include identifying the relevant people, key business objectives and requirements.

 

• ·         Business Objectives

                Clarity of what the business is trying to achieve and how the proposed software or systems will fit into the bigger picture.

• ·         Stakeholder Analysis

Clarity of who will be affected by the new software or systems, and how their voice will be heard in the decision making process.

• ·         Planning

Making a plan for whom will do what, when, where and why during the rest of the software or systems selection and implementation. Complex software and systems selection exercises can require considerable effort and investment, excluding costs of the actual software or systems. (If you want the project to go to plan, you need to have a plan)

• ·         Initial business case

An early analysis of the objective and subjective reasons for change in terms of introduction of new software or adoption of new systems or even both, including anticipated lifetime costs and benefits from its use. This analysis will be refined later in the process as more information becomes available. It is essential to understand the real business case for any change, just so that you can justify the project to the business and yourself.

• ·         Functional requirements analysis]

Clarity of what the software or systems functions and features are required to be for the different groups of people whom will interact with them.

• ·         Benefits analysis

Clarity of how the organisation will benefit from different features of the new software or systems, so that priorities can be set and compromises made objectively.

 

Essentially before proceeding to the next stage you need to understand why you are doing so and rigorously testing the business case for moving on, ensure when doing this you consider whether the business will adopt any such change.

 

Second process – Criteria and Weighting

 

This process covers agreeing what factors will be taken into account when evaluating different software or systems options, and how important each factor is in business terms.

 

• ·         Criteria Definition

Takes input from affected people to build a list of criteria used to evaluated different software or systems options.

• ·         Weighting Definition

Prioritisation of criteria against business benefits so that rational, business-centric choices can be made.

• ·         Business Review

Review of the criteria and their relative priorities to ensure that the Criteria and Weighting is sensible overall

 

It is essential that you review the business at this point and consider the different criteria points and weight them accordingly. You do not want to consider a jumbo jet when one seated spitfire will do, especially when it is going to fight in an air battle in the second world war, I am sure you get the message FIT FOR PURPOSE & PURPOSE THAT FITS.

 

Third process – Selection

 

The selection process involves the identification of potential software or systems solutions, decisions on whether to make, buy off-the-shelf or buy off-the-shelf and modify, selection of the optimum solution and actual procurement.

 

• ·         Market analysis and final approach

Building clarity on what products, suppliers and integration services are active in the market place, and deciding how to create a solution in terms of off-the-shelf, customised or bespoke development.

• ·         Scoring

Evaluation of how well different software options meet the business needs.

• ·         Decision and procurement

Final decision-making based on the updated Business Case and the results of scoring

Purchasing and contracts with the chosen supplier(s).

 

Ensuring you get the correct solution and partner or partners is essential, you need to know though that it is your business and you must be the project champion that drives the project through with all of the team both internal to your business and from your external business partners.

 

Fourth process – Implementation

 

The implementation process involves monitoring any development and implementation to ensure that expected benefits are becoming reality, followed by review of actual benefits achieved some time after a period of use.

 

• ·         Implementation and Review

                Tracking of feedback and benefits to ensure business case is coming true, and taking corrective action as necessary.

                Review of benefits and learning points after a period of use.

                Lessons we have learnt from this project, which will benefit future projects.

 

Summary

 

The above is a set of steps and techniques for objective evaluation of different software and systems solutions

 

All steps and techniques are established good working practices, and should be used to some extent in all cases. However, they must be tailored and scaled as appropriate to avoid bureaucracy and allow flexibility.

 

The above process works by defining a Criteria and Weighting model that lists:

• ·         The factors to be taken into account
• ·         Their relative importance to the business
• ·         How different options score against the criteria

 

 

 

 

The above process will also tracks any development and implementation work, to ensure original expectations become reality, and to identify when corrective actions need to take place. A post implementation review is to be undertaken after a period of use to iron our bugs in the systems, user adoption issues or even after modifications.

 

People involved in the selection should consider to what extent each of the described steps applies, rather than avoiding a step completely. Failure to do this may waste resources, and could damage the project.

 

The above process will also tracks any development and implementation work, to ensure original expectations become reality, and to identify when corrective actions need to take place. A post implementation review is to be undertaken after a period of use to iron our bugs in the systems, user adoption issues or even after modifications.

 

People involved in the selection should consider to what extent each of the described steps applies, rather than avoiding a step completely. Failure to do this may waste resources, and could damage the project.

 

Remember if need any support with the development of a software or systems requirement document please contact Agile and we will assist you as necessary.

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