| From a former insider's view these items are a must | | | | Software that is scalable in design simply means that it |
| before making the decision to purchase any | | | | can easily grow with your business, at minimal cost to |
| off-the-shelf software for your business. | | | | you. Factors include end user customizations, current |
| -Brett Johnson | | | | database structure, and inputs and outputs like reports, |
| 1.What determines the software price? Is it PerSeat or | | | | and connectivity to your other database systems. |
| PerUser or Per Processor? | | | | Scalability is very important for small businesses, |
| The cost of software is determined in many ways. | | | | because they are dynamic in growth. No one wants to |
| The two most popular ways are Per Seat or Per | | | | jump through hoops of testing, development, |
| Concurrent User. Per Seat is determined by how | | | | customizations, and training, to purchase software only |
| many seats in your business will be using the software | | | | to find out a year later that you have outgrown it and |
| at any given time. On the other hand, Per Concurrent | | | | you need to replace it. With proper planning at the time |
| User is based on a set amount of users that can | | | | of purchase only you can increase your chances for a |
| access the software at one time. (Example: 5 | | | | successful software experience. |
| concurrent users means a program can be installed on | | | | 7.In an effort to meet your business needs how |
| 20 machines but only a maximum of 5 people can use | | | | customizable is the system? |
| the system at once.) Per Processor is calculated on | | | | If you require customizations to the software to meet |
| how many machines (PC's or servers) the software | | | | a specific need, a good rule of thumb is that it should |
| will be running on. Many larger enterprise software | | | | be no more than a 1/3 of the price of the software |
| applications use this method to determine their prices. | | | | price. Never forget that many times software |
| 2.What types of on-site services are included in the | | | | companies will negotiate with you on customization. As |
| purchase? | | | | a customer any software company worth your time |
| Many programs that are higher in price should include | | | | should want to keep you happy. In some cases there |
| some amount of on-site services or support. If it does | | | | may need to be some give and take by both parties. |
| not, ensure that both (service & support) are built into | | | | A good rule of thumb would be to always discuss |
| your contract before purchasing. But, beware that this | | | | your needs with movement directly. Gatekeepers tend |
| is the area where companies make most of their | | | | to drag their feet at times. Purchasing software |
| profit. Some companies count on you returning with | | | | knowing that you will need to make major changes |
| requests for customizations of the software. Now that | | | | should be a sign that you really need to take a step |
| you have the software and have spent significant time | | | | back and look at all of your options including: in-house |
| purchasing hardware and dedicating resources, they | | | | development, outsourcing, partnering with software |
| know you are already, "half way in the pool"; they also | | | | developers to cut the price. |
| know that you will have trouble refusing to pay extra | | | | 8.What are the typical hurdles that you can expect |
| money to get what you want. These services can | | | | with your planned installation? |
| include anything from training classes, customizations, | | | | No matter what generation (e.g. 1yr 2nd version, 10yrs |
| or help with installation issues. In the case of local | | | | 4th version and etc...) the software is currently in, the |
| software companies, keep in mind, they should | | | | software company should at least be able to warn |
| automatically provide some sort of on-site services (at | | | | you of the hurdles that they have experienced in |
| a minimum) before purchasing. This can only help to | | | | implementations they have done. If not, this should raise |
| streamline your implementation process and increase | | | | a red flag for you. The software company should be |
| the likelihood of your success, with the added benefit | | | | keeping track of this type of information, especially if |
| of a higher return on investment (ROI), who wouldn't | | | | they are constantly attempting to improve their |
| like to have that. | | | | products. You will find that they sometimes run into the |
| 3.Is there a guarantee of satisfaction with their | | | | same issues 2 or 3 times before they take notice and |
| software? | | | | take action to investigate and resolve it before future |
| This is most widely overlooked when purchasing | | | | installations. |
| software. Sometimes unsatisfied users will expect a | | | | 9.What are the hours of support and how does their |
| refund after deciding that it is not what they want. My | | | | support department operate? |
| experience has been that once the developer | | | | Whether you are across town or on the other side of |
| receives payment for software, it can take next to a | | | | the world, if you need help and support is not available |
| miracle to get a refund of any kind. Prior to purchasing | | | | to you, the only option will be to take the system down |
| your next piece of software, be sure to find out their | | | | for an unknown length of time and wait for help. |
| return policy and number of days that you can have | | | | Before getting married to a software company by |
| the software in your hands and still be able to send it | | | | purchasing their product, find out where the company |
| back to get a full or partial refund. With custom | | | | is located and if the company has what I define as a |
| developed software it can be even trickier for the | | | | "passive" or "active" customer support system. |
| buyer, you will need to build this into the contract | | | | Follow-up with pointed questions like, "Will you only |
| before work begins. It goes without saying how | | | | return my call at certain hours of the day?" "Will I have |
| important it is to determine this up front in case you | | | | to leave messages and wait at the phone for your |
| change your mind. | | | | callback?" "Will I have a direct call back from a |
| 4.What is the turnaround time for getting "bugs" fixed? | | | | representative or will I be reassigned to someone |
| Some companies will say that they will fix software | | | | different every time I call?" Finding this information out |
| issues as soon as you find one. There are others that | | | | earlier rather then later should give you peace of mind |
| will compile the list of "bug" fixes and release it on a | | | | when an urgent situation or quick answer is needed. |
| scheduled basis convenient for them. This can happen | | | | 10.Ask if there is a list of items have been requested |
| either monthly, bi-monthly, quarterly or yearly. Neither | | | | to be included in the next update of the software? If |
| path is better or worse, as long as you are dealing | | | | possible also request a date of completion for the |
| with a reputable software company that stays true to | | | | items on the list. |
| their word. Knowing this before purchasing the | | | | Before they say no, put them at ease by letting them |
| software allows you to better handle your software | | | | know that your goal is find out what features they |
| end-users and enables you to provide a more | | | | might be including so that you can plan ahead for your |
| accurate time frame of when your users will see | | | | business. Chances are that if someone requested |
| changes or have their issues resolved. | | | | something, you also be able to make use of this |
| 5.How often do program updates go out and do they | | | | feature. Also obtaining this list will benefit you in three |
| notify customers? | | | | other ways: |
| This is another widely overlooked key item. There are | | | | 1.If you know that a feature is forthcoming, you can |
| two lines of thought that companies can use for | | | | notify users beforehand and seek feedback from |
| updating customers. The company might decide not to | | | | them on whether this is something they would like also. |
| notify its customers at all when updates rollout. They | | | | 2.If the item on the list is something need, be sure that |
| may think that if the customer has a problem they will | | | | you make it known to the gatekeepers, with emails or |
| contact them. At that time would they inform the user | | | | phone calls to the software company to ensure your |
| of an available update? Beware of this method of | | | | item is not lost in the shuffle, which happens more than |
| service, or lack there of. Steer clear of companies that | | | | you my realize. |
| do not provide this as an option to their clients. The | | | | 3.When you are given such a list review it carefully, |
| second line of thought would be for the company to | | | | you should be able to determine the direction that the |
| notify its customers regularly about updates. They | | | | software company is going. Are they on a path |
| may also offer and option of including the customer on | | | | dictated by their client requests? Are their frequently |
| a mailing list. In this case be sure that they have multiple | | | | little items that are minor in nature on the list? (Could be |
| contacts that are on the email distribution list so that | | | | negligible depending on the application) or Are their |
| everyone who should know will not be left out of | | | | obvious items on the list? (If this is the case their |
| communications loop. If the software company does | | | | testing practices may need to be reviewed to your |
| not offer either one of this options, you might want to | | | | satisfaction.) Or are they adding items in an effort to |
| reconsider your decision. | | | | get you to purchase add-on items that you will never |
| 6.Is the proposed software scalable in design? | | | | use? |