Often the most common pitfalls a new system
selection is the lack of a clear roadmap for the decision process.
Without a defined path forward, people can wind up spending a great
deal of company resources only to make an ill-advised decision, or,
worse yet, no decision at all.
With this in mind, we offer the following ten step plan to ease
your evaluation
-
Create A Plan
-
Document Your Requirements
-
Establish a Budget
-
Research Solutions
-
Select a Partner
-
See Product Demonstrations
-
Request Proposals, and Terms &
Conditions
-
Check References
-
Write Your Business Case
-
Make the Final Decision
- Create A
Plan
Assemble your stakeholders in the new system. A representative
stakeholders group typically includes an executive sponsor with
decision making authority and representatives from finance,
accounting, operations, IT and other affected departments or
business units. Broad representation leads to a more balanced
decision and support for the project.
- Document Your
Requirements
Work with stakeholders to document current workflows and reporting,
identify weaknesses, and create a vision for an improved system.
Avoid the temptation to "make it look like our current system but
better." Distinguish between "needs" and "wants".
- Establish
a Budget
Determining up front a broad range that you are willing to spend on
a new system will save time and effort by narrowing your focus on
software solutions you research. Consider both one-time costs, and
recurring costs.
- Research
Solutions
Begin your research at a high level, then drill down. First, decide
which market segments for financial management software fits -
entry level, small to medium enterprise, or large enterprise - and
concentrate on understanding solutions in that sector. With a short
list of two or three candidates selected, develop a matrix to
compare specific features and functions by product. Often the top
one or two candidates will emerge.
- Select a
Partner
This is not the first step, but it is the most important one.
Having completed steps 1 to 4, you will be prepared to map your
needs to the right partner. Assemble a list of qualifying
questions. You'll want to know about industry experience, product
knowledge, depth of resources, post-sales support such as training,
and more.
- See Product
Demonstrations
Having done your homework up front will make any product
demonstration more meaningful. Refer back to your requirements list
and create a demo agenda in advance with the reseller. Ignore the
basic stuff such as core financials and insist on seeing
functionality that will make-or-break the success of the new
system.
- Request
Proposals, and Terms & Conditions
Have your prospective business partner(s) walk you through their
proposal, including assumptions, methodologies, cost estimates, and
terms and conditions.
- Check
References
To be effective, checking references should be done only after you
have made a tentative decision on a system and partner and agreed
on the general terms of the proposed project. The purpose is not
education but confirmation of what has been represented to
you.
- Write Your
Business Case
Document the results of your research in the form of a business
case, with your recommendation to your senior management team or
board of directors.
- Make the Final
Decision
Address any questions from your management team or the board, make
the final decision, and move forward with confidence.
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