Table of Contents:
1: Choosing a Software
2: Purchasing On-Premise vs Cloud Application
3. Identifying the Features You Require
The software industry has undergone a significant transformation in recent years.
Just a decade ago, businesses faced multiple challenges, such as hefty upfront costs, complex installations, and the constant headache of maintaining on-premise software solutions and the hardware that they ran on. This environment favored larger corporations with deep pockets, leaving smaller businesses struggling to access cutting-edge technology and remain competitive.
The rise of cloud solutions has completely reshaped the industry, making sophisticated software accessible to businesses of all sizes. This shift isn’t driven by affordability alone; it encompasses an all-inclusive model where support, updates, and scalability are seamlessly integrated into one package. This provides peace of mind, and also significantly reduces the total cost of ownership, allowing organizations to focus on growth and innovation.
As software continues to evolve at a fast pace, it’s crucial for business owners to stay informed and adaptable. That’s why we’ve compiled a list of best practices for evaluating line-of-business applications. These recommendations are not just valuable when you’re considering new business applications; they’re essential tools for periodically re-evaluating your existing solutions.
By regularly reassessing your software using these guidelines, you’re ensuring that your business stays agile, efficient, and competitive in this fast-paced digital age.
Part 1: Choosing a Software
When selecting software, it’s crucial to choose a company with a solid track record and longevity in the market. This reduces the risk of the company folding and leaving you without support. For example, Microsoft has been a reliable choice for decades.
Consider the company’s history and the founders’ industry experience. For instance, Slack was founded by Stewart Butterfield, who had previous success with Flickr, lending credibility to the new venture.
For small businesses, it’s generally safer to avoid being early adopters of cutting-edge technology. Instead, opt for mature solutions that have been tested in the marketplace. For example, choosing QuickBooks for accounting over a brand-new startup’s offering would be a safer bet for most small businesses.
Recommendations & Reviews
Reach out to trusted colleagues in your industry to gather insights about the software they’re using. While reviews can provide valuable information, it’s important to approach them with caution. For every negative review from a dissatisfied user, there are often many satisfied customers who appreciate the product. Keep in mind that a reviewer’s experience may not align with your specific needs or requirements.
By combining personal recommendations with online feedback, you can make a more informed decision that suits your business context. Ultimately, firsthand insights from trusted sources can be invaluable in your evaluation process.
Looking for a recommendation? Get in touch with us today. Our clients are using a wide range of software programs.
Part 2: Purchasing On-Premise vs Cloud Application
On-premise solutions involve hosting software and data on servers within the physical premises of an organization. This setup offers businesses complete control over their IT infrastructure, making it ideal for industries with stringent data privacy requirements, such as finance and healthcare. The primary advantages of on-premise solutions include long-term financial savings, as the cost of ownership decreases over time, and enhanced security control, as sensitive data remains within the organization’s own network.
However, the drawbacks include substantial upfront hardware costs and the ongoing responsibility for server maintenance, troubleshooting, and security. This typically requires a high-level of IT expertise within the organization. A small retail business, for instance, might find it challenging to manage the complexities of an on-premise point-of-sale system, which requires regular updates and technical support.
On the other hand, Cloud solutions, or Software-as-a-Service (SaaS), involve accessing software and data over the internet, hosted by third-party providers. This model offers significant advantages in terms of cost-effectiveness and flexibility. Cloud solutions typically come with all-inclusive pricing, covering support and updates, and they can be accessed from any internet-connected device, facilitating remote work and collaboration. For instance, a startup might choose Salesforce CRM for its scalable infrastructure that grows with the company without the need for substantial IT investments.
However, cloud solutions also have their disadvantages, such as reliance on internet connectivity, which can lead to disruptions during outages, and potential data privacy concerns, as data is stored off-site. A rural business with unreliable internet might experience productivity issues with cloud-based software during connectivity downtimes.
Ultimately, the decision between on-premise and cloud solutions depends on a business’s specific needs, budget, and regulatory requirements. Many businesses find a hybrid approach, combining both on-premise and cloud solutions, to be the most effective strategy for balancing control, cost, and scalability,
Not sure whether to choose on-premise or cloud application? We’re here to help! Reach out to us today, and let’s find the perfect solution together.
Part 3: Identifying the Features You Require
When selecting software, the first step is to make a comprehensive list of features that your business requires. This involves researching at least three competing products in the market. As you review each product, write down all the features that are important to your business operations. This exercise will help you distinguish between common features available across different products and those that are unique to specific solutions.
Once you have identified the necessary features, it’s important to rank them based on their importance to your business. A practical approach is to use a 100-point system, allocating points to each feature. The most critical features should receive the highest points, while less important ones receive fewer or no points. For instance, if seamless integration with existing systems is crucial, it might receive 30 points, whereas a feature like customizable themes might only get 5 points. The total points for all required features should add up to 100. It’s important to ignore features that provide no value based on your organizational requirements.
This ranking helps you to prioritize your needs and make a more informed decision, ensuring that the software you choose aligns closely with your business objectives. Here are some essential features to consider when evaluating different software options:
1. Licensing Model
Understanding the licensing model can help you choose the most cost-effective and practical option for your business. There are several licensing models to consider:
- Per user licensing charges for each individual user, making it suitable for businesses with a stable number of users.
- Concurrent user licensing limits the number of users who can access the software simultaneously, which can be cost-effective for businesses with shift workers.
- Named user licensing restricts the number of user accounts, regardless of active usage, which might be ideal for organizations with specific roles requiring access.
- Per device licensing requires a license for each device accessing the software, which is beneficial for environments where devices are shared among user
2. Training
Investing in training ensures that your team can adopt and effectively use the new software solution. It’s important to understand the kind of training that is available. Many solutions offer free video tutorials on their websites, providing a basic overview of the product’s functionalities. For more complex applications, third-party training may be available, ranging from online classes to in-person workshops. For example, QuickBooks offers a variety of training resources, from self-help books to professional paid training. As QuickBooks is so widely used, training is not only available from Intuit, but also from third-party companies. If free training options are limited, consider the potential costs in terms of time and money for training new employees.
3. Data Migration
Understanding the process of importing your existing data into a new system is essential. It’s equally important to ensure that you can export data in standard formats, like CSV files, to avoid vendor lock-in and maintain data portability, especially if you anticipate changing systems in the future. Robust import/export options provide flexibility and safeguard your data, making transitions smoother with minimal disruptions.
4. Mobility
Ensuring that your software is mobile-compatible can provide a significant advantage, especially for businesses with remote or traveling employees. Check if there is a mobile version of the application that can run on tablets or smartphones. Mobile compatibility allows your team to work from anywhere, enhancing productivity and responsiveness. For example, a sales team using a CRM with a mobile app can update client information in real-time during field visits, improving data accuracy and customer service.
5. Customer Support
Reliable support for any software solution plays a vital role in your day-to-day operations. Evaluate the availability and accessibility of support options, such as phone, chat, web portal, or email. Test the support channels by reaching out with questions to gauge their responsiveness and helpfulness. Consider factors like business hours, time zone differences, and whether support is handled by a dedicated team or a small developer. Additionally, determine if a support agreement is required or if “pay-per-incident” support is available. Understanding these aspects ensures that you have the necessary support when issues arise, minimizing downtime and maintaining business continuity.
6. Product Updates
Regular product updates are essential to keep software secure, efficient, and compatible with evolving technologies. Assess how frequently the vendor updates their product and whether they stay active with changes in technology, to ensure that your software investment remains valuable over time.
7. Trial Period
A trial period allows you to test the software risk-free. Most cloud applications offer a 30-day trial period, providing an opportunity to explore the product’s functionalities and assess its fit within your operations. Narrow your options to 2 or 3 products and involve key team members to simulate real-world usage to gather comprehensive feedback.
8. Price
Many decisions come down to the bottom line, but it’s important to consider the total cost of ownership rather than just the initial purchase price. Evaluate all associated costs, including hidden expenses such as future maintenance agreements, hardware requirements for on-premise solutions, ongoing support fees, and IT staffing costs. Taking a comprehensive view of pricing ensures that you choose a solution that fits your budget while delivering the necessary value and functionality.
9. Integration with other business applications
Determine if the software can integrate with other applications you use, such as accounting software, CRM systems, or communication tools. For instance, the ability to export data to your accounting package for financial reporting or sync contacts with your sales CRM can streamline operations and improve efficiency. Additionally, check if the developer offers an API (Application Programming Interface) for custom integrations or if there is a marketplace of plugins and extensions. Robust integration options can be a deciding factor when choosing between multiple software solutions, ensuring that your business processes remain connected and efficient.
As we embrace this new era of business software, it’s essential to remain informed and adaptable to fully leverage the technological advancements at your disposal. What worked perfectly a few years ago might now be holding you back. By applying the insights shared in this article, you can make long-term strategic software decisions that will propel your business forward.
If you’re ready to explore the best solutions tailored to your specific needs, we invite you to book a call with our team today. Let us help you navigate the complexities of software selection and implementation, ensuring your business thrives in this ever-evolving landscape.