Wednesday, October 22, 2008

What software is right for your business?

This question is asked by many business owners. Most software suppliers will tell you that they have the best solution. The answer depends very much on your business. More bells and whistles is not necessarily better. Just because a supplier specializes in your type of business doesn't mean that this is the best solution for you.

In a discussion with a colleague yesterday, he identified some of the problems. He is a lawyer in private practice and works by himself. He doesn't have the per minute charge that is common in most large practices. He charges rates that reflect the value that he delivers (what a novel idea!).

He bought financial management software that is specifically targetted to law practices. What he got was a product that is not intuitive, is complex, has far more features and functions than he needs. It has features that would work very well for large practices that charge by the hour and has all kinds of checks and balances to ensure that billing is completed effectively. The problem is that since he doesn't operate this way the controls go against him. It doesn't make sense for him to use the functionality that it provides since it would take more time So he struggles with the software and can't make use of its benefits.

This is similar to a client of mine in the construction business. They bought a software product that does an excellent job at helping a business estimate and manage large construction projects. The problem is that most of their projects are small and don't need these features. The original implementation failed because it took too much time and effort to do simple things. I was able to help them to use the flexibility of the product to do things more simply and they were able to achieve their goals. The capabilities of the software are not totally wasted as they are a growing business and will need these capabilities in the future.

However, a lot of time and effort was wasted trying to adapt to the functions that didn't suit their business.

The key to success in software installations is to:
  1. Understand your business goal.
  2. Identify how your business processes need to improve to meet that goal.
  3. Identify how the software will help to improve.
  4. Take small steps. The more sophistocated software may be required in the long term, but start with quick benefits first to get a return on your investment.

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