 |
 System Selection
When purchasing new computer technology it is
important to recognize that your company will most likely use it for 5 years and hopefully
longer. It is critical to find software that fits your company's business functions today
and in the future. You also need to find hardware, software and support companies with the
stability to create a long-term relationship as your company grows.
Following is the proven STG.Select steps to employ when selecting new systems to satisfy your company's long-term needs. Step 1 - Formalize your information systems plan Base an information systems plan on your company's strategic business plan in terms of growth, new products, markets, and business organization. The information systems plan should include internal support staffing levels, operating systems, and hardware platforms. These will be used as high-level requirements for evaluating software alternatives. Step 2 - Develop a preliminary budget The cost of the software application itself is typically only one-fifth to one-third of the total cost. There will also be training, implementation, hardware, and maintenance costs. It is important to identify up front what is expected from this investment. This provides criteria to measure the success and completion of the project. Step 3 - Organize the selection team This must include a key management person from each major functional area who understands the day-to-day operation of your business. These people are the key to understanding the specific functional requirements of your business and they must be able to dedicate time to review each of the software alternatives. A person must be designated project manager with a solid understanding of your business, leadership skills, education in formal system concepts, and project management capabilities. Step 4 - Conduct a business assessment and generate detailed system requirements This is the hardest step of the process since consensus must be reached on the current perceptions of the business, as well as a vision of the future. An understanding of the capabilities of software applications is also required. A good requirements list will separate the "must have" issues from the "nice to have" Step 5 - Develop a list of qualified software applications to be considered This list should contain 5 to 10 packages. Names can be found from trade shows, magazine directories, software databases, etc. Look for the best software application first and consider the hardware alternatives afterwards. The applications can be qualified through the use of a database selection product or by phone interviews on key issues. Step 6 - Develop a request for information (RFI) or a request for proposal (RFP) If your request is for a simple response to a detailed list of system requirements, the proper document to use is a RFI. If your company has already pre-qualified a candidate, a RFP is used to draw out a detailed response to a set of specific issues. Allow several weeks for the vendors to respond to these requests. Step 7 - Evaluate the vendor responses The purpose of this is to narrow the candidates down to the three or four you want to demo. The answers and work-around solutions provided by the vendors represent alternate approaches to your main concerns and often contain valuable insights. The level of support provided by the vendor or reseller is also important information to obtain. Step 8 - View and evaluate vendor demos Demos are very time consuming and it is important that the time be well spent. Set the agenda and avoid excessive sales pitches. Bring the vendor representative into your company before the day of the demo. This gets the introductions out of the way and provides the vendor with the opportunity to learn more about your business needs. The vendor should leave this meeting with a copy of the demo agenda and data to use during the actual demo. During the selection process, it is important to involve the people who will implement the system. They should participate in the demos and buy into the system that is best for your company. Without their support, the implementation will fail. Since there will be many people looking at a number of different packages, it is important for each participant to record on paper their impressions of each demo. Step 9 - Check out the vendor Once the demos are complete and the best one or two software packages have been determined, it is important to get third party feedback on the applications. Sometimes companies do this with telephone interviews of reference sites or by actually visiting sites using the software. The reason for this step is to find out more about the service level provided by the vendor and what implementation pitfalls to avoid. Many software companies are publicly held and information can also be gained from annual reports. Step 10 - Select a finalist After you have made your software choice, bring the finalist back to your company for a more focused walkthrough of your important business processes to identify any major problems or issues that were missed in the demo or raised during the due diligence phase. Step 11 - Negotiate a contract for software, training, and maintenance Quoted prices should include the cost of the vendor's software, any other required third party software (i.e., the database), training, implementation support, annual maintenance, and, in some cases, server and client hardware. Also, determine if purchases can be staggered over time. Step 12 - Develop an implementation plan Before signing the contract, talk with the vendor about the implementation process. With the vendor's help, develop a preliminary implementation plan with key dates, activities, and resources - both internal and external. Clearly understand your in-house capabilities and if third party consultants can add value through project management and experience.
|
