10 reasons you need to be careful while software selection

Gunjan Rehal

Gunjan Rehal

Senior editor

Parul Saxena

Chief editor

Last updated: July 9, 2021

Update 6/30/2021This post has been updated with additional information about the software selection process.

The software selection process is one of the most significant decisions made by any organization. Multiple parameters need deep insight before choosing the software that will render positive results for years to come.

Today’s business economy is no less than the F1 racetrack, where the car which speeds with perfection and speed, wins the race. But is it possible to pipe in such a competitive level of flawless strategic moves manually? Of course not. Every business needs the support of software technology to scale its business operations and growth.

Effective business management software is of great help to businesses who foresee the following characteristics in their firm:

  • Improved efficiency and productivity of the employees.
  • Least or a negligible number of errors.
  • Ease of communication at all levels.
  • Better customer relationships.
  • Improved customer logistics.
  • Legal compliances.

But one wrong decision of choosing the wrong software can transform all the above goals into a nightmare. By not opting for the right software selection, companies cannot experience the advantage of automation and digitization otherwise available with software implementation. Remember,

“You are free to choose,
but you are not free from the consequences of your choice.”

So let’s study all the adversities a business can face, on compromising for the wrong software. You can also have a look at the case study of Hershey’s, Nike, and HP to understand the extent of the downfall, one wrong selection of software can bring to an established business.

software selection

source

1. Loss of revenue

Businesses miss out to experience the prime benefits of software implementation when they settle for the not-so-good software option available in the market. Lack of proper evaluation and software selection can lead to big losses in the future. It will affect the business so much that you lose your customers to competitors. Do you know that a software upgrade glitch caused an estimated loss of $100 million to Nike in the year 2000? If one wrong decision related to ERP, CRM, or other software packages can hurt the big companies so much, then you can very well imagine the level of tremor it will bring to small or new business entities.

2. Wastage of time

Choice of wrong or inappropriate software requires untimely and frequent surveillance by the staff. This leads to wastage of time and delay in business processes. Time also gets wasted in requiring to connect with the software vendor frequently, for fixing the problems. As a result, you might start losing your precious and even loyal customers. Your wrong selection for types of software is an excellent opportunity for your competitors to grab your customers.

3. Increased workload

The need for software implementation arises when the business wants to upscale its operations and revenue. But a wrong selection process can turn the situation upside down. For example, an implementation of the wrong CRM software will make the overall sales process more complex and result in reduced productivity and increased workload on the sales force. The increase in workload will further add to the cost of the product and service, too.

4. Business disruption

Buying software is not an instant decision. It requires a properly set selection process, post which there is purchase and implementation of the same. In some big organizations, they have a software buying committee that concludes which software to buy and why. This committee comprises the managers from the finance, marketing, production, and operations department. The wrong choice of software by the leaders thus disrupts the entire business process and puts the productivity of the stakeholders at risk. It also affects the business responsibilities, project timelines, and day-to-day operations.

5. Extra add on costs

With the change in technology after every few months and with business expansion, every implemented business software needs an upgrade. So it is essential to clarify from the software vendor at the time of software purchase if the upgrades are workable or not. Also, confirm what all add-ons and customizations are available. Failure to clarify all these leads to the extra add-on costs for updates and changes.

6. Replacement costs

The firm which has already invested a good sum of money to buy, implement and train its employees for new software, needs to shoulder an extra heavy burden of replacement cost. Replacement cost is the cost incurred to swipe out the wrongly chosen software and bring in a new one or shift back to the previously running software. Replacement costs impact the organization’s stakeholders too. HP faced such a situation in the year 2004. HP suffered a loss of more than $160 million in sales and a huge dent in its goodwill too. It even lost its customers to its competitors.

7. Loss of team morale

Poorly designed software can easily dampen the team morale of the human resource of any organization. The team which once outshined with its results now delivers poor results, post software implementation. As a result, the team feels frustrated and employee attitude and confidence weaken. The team which was invested upon with time and money to get acquainted with a new wrongly chosen software faces failure, fatigue, and frustration in all.

8. Job losses

Wrong selection of software results in business disruptions and affects the job credentials of its employees. When the wrong choice of software affects the business revenues, the company looks at lowering its human resources resource. As a result, there are a considerable number of job losses.

9. Disrupted public image

The wrong implementation of software hurts the public image of the organization. Customers turn their back when they experience delays in commitments, delays in services, and mismanaged support. Often, the brand promise also gets compromised, thus negatively impacting the organization’s goodwill.

10. Prone to fines and lawsuits

Also, if the EHS program (environmental, health, and safety program) of your firm depends on the active software of your organization, even that will get negatively impacted because of one wrong decision. As a result, it will burden you with increased insurance premiums, violation notices, and legal fines.

Software as a service is in rising demand by organizations who wish to upgrade their operations and revenue. Irrespective of the size and type of the industry, the company requires software support to speed up and ease its operations. But as shared earlier, the road to software selection is not an easy one. So we have made your software selection process easier by acquainting you with all the checkmarks that should be present in the chosen software and all adversities a business can face in case of wrong software selection.

software selection process

source

Key Parameters

So before you complete the purchase decision for your business software you need to cross-check all the below-mentioned parameters.

1.  Understand your business needs by asking these questions:

  • What are the goals of your business for the upcoming fiscal year?
  • Are you growing or not?
  • How will the right software impact your business?
  • What is the estimated budget for the software?
  • How do you define the success of your business?

2.  Create a list of essentials like:

  • How accessible will the software be to the employees?
  • Is the software affordable?
  • What is the expected support?
  • What all features of the current software are not preferable?
  • Does the new software offer extra features?
  • What business process will become more streamlined?
  • What are the types of software?
  • Does the software offer value for money?

3.  Create a shortlist of:

  • Online reviews.
  • Eliminate the software that is beyond your budget.
  • Eliminate the software that has unnecessary features.
  • Finalize the remaining viable options.
  • Rank the leftover software options.

4.  Test drive the shortlisted software options:

  • Yes, software companies provide a demonstration of their product before making the purchase.
  • Schedule the demo for each of the software options.
  • Keep track of the ease of customer support.
  • Test all the demos for the entire trial period.
  • Get feedback from your employees too.

5.  Purchase your best option and measure its ROI by asking these questions:

  • Are the benefits at par with the expense incurred on the software?
  • Will the software upgrade with the need of the business?
  • Does the software serve the purpose?
  • Are the employees compatible with using this product?
  • Is there proper customer support?
  • Is the software helping in achieving the company goals?

All the business software solutions which are available in the market aim at improving the overall business solutions. But you need to make sure that you choose only the right business management software for your firm. This software selection process is a complicated task indeed. So, don’t get caught up with what your peer refers to or chooses. Instead, identify what you need. Because one wrong decision can adversely the overall functioning and productivity of the firm for many years and months.

So tell us, does your software selection offer a balance of price, service support, licensing, security, ease of use, flexibility, and more. If yes, we would love to hear the name of your favorite business software.

Also, stay tuned for more such technological advice from SoftwareSuggest.

Gunjan Rehal
"With novel thoughts and creative egghead, Gunjan Rehal is a well-acclaimed content writer. Her passion turned profession in writing dates back to her school days when all her writing skills were used to earn her those extra marks in essay writing, poems and prose. Today, being a creative content writer, her in-depth research for topics, choice of words and the way she marshals them to deliver engaging content is commendable. Being a versatile and dynamic writer, she is flexible in moulding her art of writing to the specification of the company or the client she works for. She infuses life in the words and makes them go interactive when read through the eyes of the reader. To date, her journey as a writer has laid its footsteps in the area of travel, parenting, health, real estate, IT, e-commerce, life skill, consumer behaviour study, and brand management. But her wanderlust for more writing and more knowledge pushes her to explore more. "

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