iDOCcorp Blog

There are different things that need to be taken in consideration when it comes down to choosing the right software for the company. When the company has been working for a long time without a software solution or with an older software, the transition to utilizing a newer software involves risks that most managements are hesitant to take. It is understandable why most managers think twice before even considering using a software solution or changing their previous software solution because of the possible costs and time that could be wasted should this transition prove to be disadvantageous to the company. But then again, there is still that huge possibility that if the company is able to decide on a software that they have screened and tested thoroughly based on their company’s needs, routine tasks and workflows; it could turn out to be a successful endeavor for the company to take. Initially, the employees who will be using the software solution may take some time to learn the software and to use it efficiently. But with enough management support and software training, the employees will quickly maximize the use of the software to come up with faster turnaround and increased productivity.

The following are steps that are highly recommended when evaluating software solution for the usage of the company. Although evaluating a new software may take a lot of effort, time and money from the company, the benefits that the right software can give are definitely worth it. An efficient and effective software can save the company a lot of money and time once the users has gotten used to it.

Begin with a detailed list of requirements and daily work tasks

• Firsthand information from people who will be using the software in the future is one of the most valuable determinants in choosing a software solution. This is because they are the ones who know exactly what the software should do to make their work easier and faster. Interviewing these people and conducting a survey to create a database of the necessary features that the software should have can be very helpful in deciding for the right software to implement. Aside from taking note of the things that users want in a software, the managers should also consider the things or features that users would not want to be included in the software. Most of the time some of the predetermined softwares have features that are too complex which only hamper efficient workflow and task completion. There are two important reasons as to why the users should be included in the evaluation process. The primary reason is that they are the ones who are knowledgeable when it comes to the needed software functionality. They are also the ones who know what the software needs to provide its users in order to carry out daily tasks more efficiently. The other reason is when the end users of the software, particularly the employees, are involved in the screening, evaluation and selection process, they are more likely to be supportive of the new software. They will be much more willing to learn because they will understand that the implementation of the new software is not meant just to increase overall productivity but to make the work of employees simpler, easier and lighter.

Decide between on-premises or SaaS model software solutions

Both on-premises and software as a service (SaaS) model software solutions have their advantages and disadvantages. Knowing the features and benefits as well as the downside of each software solution will help decide which one is the right software solution for the company.

On-Premises Softwares

These are the software solutions that are described to be having a computer and software located within one of the company’s facilities. The vendors usually require a one-time license fee for indefinite use of the software. The software company will also require an annual support and maintenance fee which is more or less 15% of the license fee. The continuous software support is has its good and bad points. The company needs to have an IT team of employees to learn the troubleshooting and in-house maintenance of the softwares to keep everything running smoothly and securely. Most of the time, the people from the software company are the ones who train the employees of their customers on the operation, maintenance and troubleshooting of the software. The software company only oversees and supports the company’s IT team in their management of the software solution. This entails additional costs and manpower for the company just to keep the software solution well-maintained. There are also problems that could arise in cases of system failures which require the company to maintain failover sites. Software in off-site locations will also need to be maintained and this also necessitates additional resources from the company. The company will have to continuously keep backup copies of the software and the data involved should there be unwanted incidences of system failures. The company will have to thoroughly weigh the benefits of on-premises solution against the costs and manpower involved in maintaining it.

Software as a Service (SaaS) Solutions

The advent of Software as a Service (SaaS) Solutions has paved the way for drastic improvements in the way companies go about their daily tasks and workflows. The corporate world sees SaaS solutions as the newest trend in the software industry that could bring about higher productivity and improved work efficiency. Those who have turned to SaaS found it to be the right architecture of choice and software solution for the overall task management support of their company. The reason behind the success of SaaS solutions over on-premises solutions is that software companies have estimated the amount of money and manpower that could be saved when softwares are offered as an online solution instead of as an on-premises solution. The cost efficiency of SaaS benefits not only the customers but the vendor company as well since only a single software program needs to be maintained for all of the customers who use the services. Since the software is made available to customers via the Internet, the vendor company can easily handle maintenance problems and update the software without having to go to each of the customers who have rented their services. The costs on distributing software in different parts of the world for the use of the clients are virtually gone since the selling of the software solution is done through the Internet. The company who uses a SaaS solution will no longer need to have an IT staff to maintain and support the software used in an on-premises solution. The only thing the company need to have to utilize a SaaS solution is a web browser and an Internet connection. The company’s employees can access the software solution wherever they may be with their PDA or laptop. A user ID and a password can be given to the employees who are directly involved in the projects that would necessitate the use of the online SaaS solution. Confidentiality of documents is maintained because only those given access can view the data. Every time a user logs in, the date, time and activity is recorded so management can keep track of the performance of the employees. Whenever a document is uploaded or change is made on previously uploaded documents, the online SaaS solution automatically sends emails to all members to keep them posted and updated of the activities of the other members. SaaS solutions not only make tasks and workflows more efficient, they also improve office communication and collaboration.

Create a Request for Proposal (RFP) for qualified vendors

• Determine which vendors supply a solution that meets your functional requirements

Scouting for vendors that provide different software solutions is the first step in finding the right solution for the company. After gathering a list of software vendors, comparing the features, advantages and disadvantages of the different softwares is the next step. No single software is the right solution for all companies with different types of tasks and workflows. A company will have to find the software solution that most suits their needs to make the most out of it.

• Determine which vendors are within your budget

Different vendors that offer software solutions often have a range of prices depending on the features offered and the complexity of the software management and support being given. As soon as the company has fully understood exactly what it needs and what kind of features they expect from a software, they can choose the software that offers the advantages that they need while staying within the budget. There are instances when two or more software vendors which offer software solutions with more or less the same features but are with different price tags. The most prudent thing to do is for the company to check feedback of the different softwares to know which of the software solution in the market offer the best features at the most competitive price. If two software solutions have similar prices, checking with other people who have used both systems would be best to know which software solution improves software abilities.

• Create a RFP

To allow vendors to select the most appropriate software solution for the company, they need to present a detailed list of daily work tasks and features that the company needs would be necessary. This list will be forwarded to the leading software vendors in the market along with a formal request for proposal. Once the vendor companies have prepared their portfolios, it is now time for the client company to gather the people involved in the software utilization to thoroughly review the software solutions.

• Review the RFP and create a short list of vendors

The management of the client company should select the employees that they would involve in reviewing the softwares offered by the vendors and in creating a short list of the most suitable vendors. They need to methodically compare the features and the user-friendliness of the softwares. They also need to compare the price with their budget while still putting quality into consideration.

• Have each vendor present and demonstrate their solution

The shortlisted vendors should be asked to present and demonstrate the usage of their software solutions in front of the team of people who will be choosing the software to purchase for the company. It is impossible to gauge the effectiveness of a software solution by simply reading its features and benefits hence it is important for the vendors to show how their software works and how it will improve the working conditions of the client company.

Prioritize vendors by lowest risk of failure

• Vendors companies that lack experience, training and functionality often add up to the potential for failure of the implementation of the software. When vendor companies have employees that are not fit for speedy troubleshooting and maintenance, client companies are the ultimate victims of their incapability.

• Finding a list of the client companies who have used or are using the softwares from the vendor company they are planning to buy from is necessary to determine the credibility of the vendor company. Most of the time, the software vendor companies have the approval of their clients to use them as a form of advertisement. The clients would give recommendations and detailed descriptions of how the software has helped their company in increasing productivity. When reviewing product reviews and recommendations from “satisfied customers” it is good to keep in mind that not all recommendations are real and may just be made up by some of the vendor companies for advertisement. Some customers may even give good recommendations and referrals in exchange for kickbacks or profits from the vendors. The vendor companies should provide their potential clients a list of their previous customers from the same industry or geographical location. From there the client company can contact the other customers and ask for opinions regarding the software to create and objective description of the software. If the customers are willing to participate, the client company can conduct a survey or an interview to learn about the actual experiences in using the software and how the software help boost the sales and productivity of their company. The customers who have used the softwares firsthand are the only ones who can talk extensively about the implementation of the software, the learning process, the problems that came up along the way and how their company handled those problems. It would also be beneficial to know if the software was bought as the vendor company offered it or were there customizations made to suit their specific needs. Customizations and changes entail additional charges and time before the software can be prepared so this also needs to be carefully considered.

Prioritize vendors by lowest long-term cost of ownership

After reviewing all the presentations, the team should narrow it down to two software solutions and allow the vendor companies to bid for the most competitive pricing proposal. Often, vendor companies are more likely to bend to the price the clients propose if there is a competition involved. Unlike if the client company has singled out a software vendor company and asked for a final quotation, the vendor company would tend to give a higher price knowing they do not have to compete with anyone in order to sell their product. At this point the client company should have decided whether to use on-premises or SaaS architecture. They would now be comparing two quotations that are both either an on-premises solution or an online SaaS solution. This is because the overhead and maintenance costs of the both on-premises and SaaS solution are different. The client company can set up a formal bidding for the potential vendors to compete for the sale of the software solution.

Make your decision based on empirical data only
To be pragmatic in selecting the right software solution for the company, it is imperative to base the choice of the software on only empirical data. Studies and surveys on vendor companies are important sources of information that could be used in deciding on the software solution to purchase. A fact such as a vendor company having sold 100 softwares whereas another vendor company only 10 softwares from the same year of launching is an example of a very important empirical data. This could mean that, although the both companies launched their softwares on the same year, one company gained the trust of more clients over the other. It would also be good to find whether client companies switch to a different software after using newly purchased software from some time. This probably means that the client company did not perform a thorough review of the software before buying and implementing it. A company that is planning to buy a software can gain valuable clues from the success and failures of other companies who have already purchased softwares from vendor companies. It is not all the time that established software vendor companies offer the best software solutions. Client companies should not be hesitant to consider reviewing the software solutions of new companies. A systematic approach in coming down with weighted decision criteria is necessary to come up with an objective review of the softwares of each vendor company.

Filed under: Document Management, Ediscovery Services, Software Development, Workflow Management Software