Cover story: Selecting software for business success
There is a dizzying array of software choices available to the modern business, but what’s the best one for you? The Business Application Software Developers Association can help.
A series of guides for both software buyers and those who advise them has been 
But why is it doing this when buyers and sellers surely by definition have different objectives? It is actually to everyone’s advantage to ensure that:
- organisations select the software that best meets their business needs;
- buyers ask the right questions to the right vendors and gain meaningful answers to make those decisions; and
- the most efficient purchasing processes and methods are used, which will save time and money for all.
Whatever the size of an organisation, buying business software is analogous to a family purchasing a house – it’s a fundamental decision, made very infrequently. As the technology options, range of solutions and potential suppliers may well have changed fundamentally since the last purchase, it’s vital to take expert advice. As software vendors go through hundreds of selection and procurement processes each year, they are well-placed to share the best practices that lead to optimum results for buyers. Whether looking for a business app for use on a phone, a simple cloud-based application paid for monthly by users or a customised enterprise-wide system, many of the buying questions and processes are the same.
The BASDA series of guides includes:
- Selecting Business Software – straightforward advice ensuring the most efficient purchasing processes and methods are used across a diverse range of systems. Relevant for purchasers from businesses of all sizes from start-ups to large public sector organisations, ensuring investment is made based on true business needs and the right due diligence is being carried out.
- Selecting Business Software for Small Business Success – small businesses have considerable demands on their scarce resources as they grow. This guide gives independent advice on how to select the business applications that will meet and support growth plans and meet the statutory requirements of the business without draining resources.
- 10 things to consider when purchasing Making Tax Digital Software for VAT.
- 10 things to consider when purchasing Construction Accounting Software (due to launch April 2019).
Focus on the fundamentals
For SMEs with limited time and resources, the first focus should be on launching the business and keeping it running. What are the real essentials to attract funding, find and retain customers and develop and deliver products and services? The most important objectives will depend on the kind of business and this will drive which software is best suited to meet the needs. An online retailer will have different business application needs to a new manufacturing company or an organisation that provides people and services. It’s easy to be distracted by what’s more interesting or what’s in vogue, but businesses should identify what’s important to them now, then
laser focus on that.
Don’t forget the plumbing
Cash-flow management, bookkeeping, accounting, financial reporting, expense control, VAT reporting, payroll, pension provision – perhaps these aren’t on the list of the most exciting things for entrepreneurs to think about. However, these background processes could sink a business, slow its growth or, at the very least, eat up huge amounts of time that could be better spent on looking after customers or improving products.
Initially many of these workflows can be handled by spreadsheets and online documents but, as a business grows, there will rapidly come a point when the right software tools are vital to better manage operations, meet regulatory needs and free up time to think about expansion. Introducing business applications incrementally as a business grows will support must-do back-office processes.
Do the research
There is a wide range of software solutions out there and you need to work out the right one for your business. For example, a search for accounting or bookkeeping on the online app stores will currently return close to 100 options for each. Some apps are at the top of the list because of paid advertising, some are free, some have an up-front fee and some feature in-app purchases that charge as more functionality is unlocked.
There’s no one best tool that fits all types of business, so it’s important to be clear what the real needs and objectives are. Just because a solution was successfully used by a colleague at another organisation, doesn’t mean it’s right for a business in a different industry with other challenges.
Draw together information from a range of sources including your peer network, trade associations and reviews and ratings from other users. Benefit from the experience of others but make sure that their situation is relevant to the specific needs of the business.
Not just about the software
It’s important that the software provides the functionality that an organisation requires, but there are other factors to consider when making a choice:
- Support – review the options for when help is needed or a problem is encountered, including when the support is available, if it is online or by phone and if it incurs additional charges. Comparison sites such as Trustpilot provide customer feedback on support and service performance.
- Self-help – find out if there are any online FAQs and discussion forums, or other user groups and user conferences.
- Training – if training is required, have a look at the online courses, training videos or convenient locations that provide education.
- Ongoing functionality and costs – factor in any additional costs for increased software capabilities and regular updates, especially in light of updated legislation.
- Viability and reputation of the vendor – consider whether the software provider is likely to be around for the long term, continuing to develop the solution.
How to make a final decision
It can be a useful to adapt the scoring method used by larger organisations when comparing different solutions and providers. A typical scoring scheme to support software selection might work like this. First, make a list of each requirement, then weight and score each based on this method:
- Assign a weighting against each requirement based on how important it is: nice to have (1); desirable (2); or essential/mandatory (3).
- Next, review how each solution matches up and assign an evaluation score for it against each requirement: does not meet requirements (0); partially meets requirements (1); fully meets requirements (2); or exceeds requirements in a way that might be useful in the future (3).
- For each requirement, multiply the evaluation score by the weighting.
- Calculate the total for the solution.
- The solution with the greatest points total is selected, unless some mandatory requirements are not met and the solution provider cannot offer a satisfactory workaround.
Documenting why and how a decision was made can also be important for future scrutiny. Formalising decision-making will help focus on what functionality is really needed, as it is easy to forget the basics and be distracted by ‘exciting’ features that may never be required.
Core business application software includes:
- Accounting and financial reporting
- Budgeting
- Customer relationship management
- Enterprise resource planning
- Human resources
- Payroll
- Pension provision
- Purchasing
- Sales
- Manufacturing
- Websites and online presence