Software Vendor Selection – Part 2 of 3
In Part 1 – Establishing the Business Case [https://www.Searchlightconsulting.co.uk/case-studies/identifying-new-epos-solutions/] we discussed how you establish the benefits case for your project – what sort of technology solution will enable your business to perform better and deliver a tangible improvement.
In Part 2 – Selecting the Right Solution we will look at how you find the right solution, how to consider the network of people who will deliver and support that solution, and then how to best to set about the formal selection process.
Part 2 – Selecting the Right Solution
Having decided to Buy rather than build your software applications, you now need to find the right application vendor.
2.1 Is there a ‘right’ answer?
No, there is no ‘right’ answer when it comes to choosing a software application. And if there is one which is ‘right’ now, it may not necessarily be ‘right’ tomorrow.
You can look at what your industry peers use, and read user and analyst reviews, but your business and your circumstances are unique. What is right for you is not necessarily right for others, and vice versa, what is right for your peers (and competitors) is not necessarily right for you.
Consider your software ecosystem
No application or business exists in isolation, and you should aim to build an ecosystem of applications that happily coexist. Integration is key, and there are ‘clusters’ of applications that naturally work well together. They speak the same language.
Increasingly we see software vendors building their solutions with ease of integration in mind. Modern SaaS (Software as a Service) or ‘cloud’ applications are often built with open APIs and the ability to ‘add-on’ or ‘plug-in’ other vendor applications that provide best-in-class or specialist services. Much of the hard work in implementing new solutions is getting applications to talk to each other. Pre-built and proven integrations can save you significant time and cost.
Also, keep an eye on mergers and acquisition in the software vendor market. Will your key vendors merge and improve integration? Or will they become competitors, creating greater friction and additional costs?
The ecosystem extends to the community of users, developers, implementation partners and support services. Will your selection improve over time as the community continues to develop and enhance the products? Will you benefit from innovation and compatible upgrades?
Established Vendors vs New Entrants
While established vendors may be perceived as lower risk, new entrants often drive innovation.
- Established vendors provide stability and access to a larger talent pool but come at a cost premium.
- New entrants offer cutting-edge technology and early mover advantage but pose risks related to long-term viability and limited expertise in the market. They may not match your geographic coverage, may not survive as a long-term viable provider, may not become an accepted part of your current ecosystem. With new vendors it may be harder to find enough people, with the skills and expertise you need.
2.2 Assessing the delivery risk
Often overlooked in selecting a software vendor is the importance of the network of people you will need to implement and maintain your solution.
Key considerations:
- Who will implement the solution? Does the vendor provide professional services, or do they have an established Partner network?
- Is there an established skill set in your market or geographic region?
- Will you use onshore, nearshore, or offshore resources?
- Do you have internal resources available, and do they need upskilling?
- How does this impact the career path of your people, end-users and technology support teams?
- Will the software you select keep your employees motivated? Is it new and exciting, does it provide a learning path allowing growth and professional development?
2.3 Do you need a formal selection process?
Even if you believe you already know the right solution, a formal selection process is essential. It ensures transparency, protects your business, and allows you to negotiate better commercial terms.
A structured selection process can reveal unexpected insights and challenge your assumptions. It also creates a competitive bidding process, driving vendors to offer better value on licenses and services
So how do you approach the selection process itself, agree the deal, and transition from procurement into a successful partnership for delivery? Find out in Part 3 – Establishing the Partnership
Link to Part 3 – Establishing the Partnership
Contact us today to learn more about how Searchlight Consulting can help with your software vendor selection.
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