Choosing the right software for your company is not always an easy decision.
In fact, it can
be quite stressful, especially when you are aware of the detrimental effects of choosing the
wrong software. The software selection process can be complex, and business leaders may
have questions, such as, “What are the phases of the software selection process?” and, “Is
each stage really necessary or can I skip a few?” Each phase of the process is important and
should be completed with accuracy to ensure a good outcome.
1. Identify the Problem
Too often, organizations make the mistake of rushing through a software selection process
without really focusing on the purpose of each phase. The first phase is one of the most
important and sets the tone for the rest of the process. It’s usually obvious when an
organization needs new software, but it’s important to determine what constitutes the ‘best’
software for your unique business situation. To figure this out, business leaders need to think
about the challenges the organization faces and which software could provide value. Without
this information, the rest of the software selection process will be unfocused.
2. Perform a Requirements Analysis
Once you have identified the problem that you are trying to solve, you will need to determine
relevant functionality. What business processes are impacted by the identified problem? This
information can be determined by undergoing a requirements analysis. Developing high-level
use cases based on your business processes can also be helpful. A requirements analysis
focuses on three main requirements: functional, non-functional, and organizational. Going
through the requirements analysis process will result in a requirements document that you can
reference in the future.
3. Research the Market for Vendors
The next phase in the software selection involves actually starting the search for new
software. Those involved in the process will need to research the marketplace to locate
potential software vendors that might fit the bill. When searching the market, it’s key to look
for vendors that offer software that has the ability to solve your company’s identified
problems. In some cases, this may require a solution that is customized to your unique needs.
Start with a large list of vendors and gradually narrow down your list until you find one that
checks most of the boxes on your requirements list.
4. Request Information from Vendors
Once you have narrowed down your list to just
a few candidates who you believe can deliver optimal software, you will want to send out
a request for information (RFI). An RFI will provide your company with detailed information
about the vendor and the software that they offer. You may find that some vendors simply do
not reply to your request. In this case, it’s easy to disqualify those vendors. Once you have
received information from the vendors on your list, gather your team to review this
information and narrow down your list even more to just a select few choices.
5. Submit a Request for Proposal
A request for information is just the first step of a three-step process. After narrowing down
your vendor choices, you will then want to submit a request for proposal (RFP). While an
RFI provides companies with basic information about a software vendor, an RFP provides a
more detailed breakdown of a vendor’s software. Once you get to this phase in the process,
you should have just three vendors left on your list. This phase allows those performing the
selection to ask more detailed questions about expectations from the software and why you
should choose that particular vendor.
6. Invite Vendors for a Demo
After receiving sufficient information about the final software vendors on your list, you will
want to invite these candidates for a demo. This can help you determine if the vendor is able
to deliver what your company needs. A demo not only provides more details about the
software, but can also help the selection team determine the quality of the software and
implementation. To streamline the process and help ensure a satisfactory outcome, take the
time to develop a demo format and script for your vendors to follow. It’s also helpful to
create a scoring sheet to use during review of the demos.
7. Choose to Build or Buy a Solution
The final step in the software selection process is crucial to the final outcome of the process.
You will need to choose whether you want to buy a software solution from a vendor or build
a solution in-house. While this step may seem counterproductive, you may find that the
solutions offered by your vendors are not going to meet your needs. If you do choose to buy
software, you will need to negotiate a contract with the vendor.
