What Your Office Needs to Do and Discuss When Looking at Purchasing Enterprise Software

There are myriad components associated with searching for and buying an enterprise software solution for your office. This document is meant to guide you through the process of deciding what, if any, software solution might be best for your business needs and what to do once you have decided which software solution to purchase.
 

Determine the ROI

Price is almost always the determining factor in purchasing enterprise software, but it should really be seen more as one of many key factors. The biggest question to ask, and answer, is what is the ROI of this product? How have other offices like ours benefited from switching to this product? Did it save them time and money in the long term?
 

Build the business case

Identify the potential business opportunity and begin to document it. Re-read your documentation, then re-write it, then send it to a colleague for another re-read. If you have a partner in the process, get their perspective or co-author it together. Some key questions to answer in this process are:

• What key stakeholders do we need to involve and how will they be impacted by our proposal?
• How will we measure our success with this product? Will this measurement meet the requirements of our key stakeholders?
• What is our timeline?
• Is our current process still a viable option?
   

Secure institutional sponsorship

Direct two-way communication with executive level personnel at both your institution is a key component of finding an enterprise software that works for you. Starting these conversations early will help you decide whether this relationship can work at a partnership level before deciding if it can work from a technological level. Key offices to talk to on campus include:

• Procurement – there is nothing more important to purchasing an enterprise software than making sure you have the budget to support it.
• IT – even if your office has been approved the necessary budget to begin the process of choosing and purchasing an enterprise software, the process cannot move forward without time being scheduled for your IT to work with the software company to complete the installation of the software for your institution.
• Registrar – at most institutions, the registrar’s office holds the position of data czar. Know what data you wish to have passed from the registrar’s records into the enterprise software solution for your use and schedule time with your registrar’s office to make sure everything you want can be delivered to the enterprise software solution.
   

Plan the Process

Installing, configuring, and launching enterprise software isn’t like installing Microsoft Word! You need to plan for your launch and execute that plan over time. Many institutions bring in project managers to make sure their launch stays on schedule. Depending on the size and scope of the project, plan for 2-6 months of implementation time before launching your new product.
 

Know the meaning behind the buzzwords before you are influenced by them

Buzzwords can dilate your pupils and fill your body with excitement, but what do they really mean to you as a software user? For instance, what does a company mean when they say they are hosted in the cloud? Is the product actually built for a cloud environment or is it what is known as an on premise software that is hosted in a physical facility? Is this something that actually matters to you? Keep an ear out for key words and make sure the vendor explains exactly what those key words mean in relation to their product and how it applies to you.
 

Get hands on with what you’re buying

Vendors are always happy to provide you with a software expert that will walk you through a demo. Some companies are even willing to customize a demo based on your requirements and processes, but you will never truly understand how the product works until you get your hands on it. How do you actually create that wonderful report they showed you and what kind of data configuration is required to make those reports work for you? Nothing will help you answer these questions better than being able to access the software yourself.
 

Do you have other customers like me?

Find out if the company has a pedigree with other customers like you. Make sure the customers they are providing you as references have similar integrations, are of a similar size, and use the software in a similar way. Here are a few questions to ask these references:

• How well did your implementation go overall?
• Did you have any major problems during implementation?
• Have you had any major issues since going live?
• Have you been well supported by the software company?
   

Use your network and social media to do research

As little as ten years ago, you would have had few opportunities to access a reference outside of those provided by a vendor. If you feel your vendor provided references are not answering your questions the way you wish or are not similar enough to your institution, you can take advantage of social media to find contacts who work in any number of institutions provided on the vendor’s client list. Seek out those with a similar sized program as you, or those who might be using the software in the same way you intend to use it. This will help you get an idea of their feelings about the software without being in the shadow of a vendor recommended reference.
 

Should I buy on futures?

Never buy on futures. The golden rule for purchasing software is to always base your buying on the services the vendor provides you today in comparison to your current needs. Don’t let the promise of what’s to come in future versions sway your decision. Vendors’ business priorities change, so it’s always important to be happy with the product as it works now.
 

Is there headroom for us to grow?

Research other customers like you using the product to see if they have scaled higher or are doing more now than what you might expect the product to be capable of. An institution just beginning to use a software does not want to be the one pushing the boundaries of its capabilities. You want a software that has already accomplished what you want to accomplish.
 

License fees

A license fee typically involves a certain cost associated with use of the product. It is key to understand cost based on the structure of the specific software you are purchasing. Questions you might ask about license fees include:

• Is the cost based on the number of users created in the software? If so, how much is the cost per user?
• Does the software offer an unlimited number of users?
• Are there different types of users in the software (i.e. administrative users vs. front-end users)? If so, do these users incur a different fee, the same fee, or no fee?
   

Implementation fees

Typically, you can expect to pay as much, if not more, than the cost of the software you are purchasing in implementation fees. You should be prepared to ask questions about implementation fees upfront, including if they are one time or recurring fees.

• What fees should be expected during implementation?
• Are any of these fees recurring or are they one-time-only fees?
• What customizations are available during the implementation process? If so, what fees might these customizations incur?
   

Maintenance fees

Maintenance fees generally represent a significant annual overhead cost, often about 20 percent of the software charges. Make sure the charge you incur for these fees is met with the kind of support you want and need.

• What support is made available to us upon purchase of the license?
• Can we reach support in the event of an emergency?
   

Upgrades

Upgrades are a major component of any third-party vendor software. Make sure that your version of the purchased product will be supported for years to come.

• How often do upgrades occur?
• What is your company’s upgrade history over the past 10 years?
• Is there any cost associated with upgrading? If so, how much does it cost to upgrade?
   

New and additional modules

If the vendor invents a module after the date of your signed contract, is it automatically included in your agreement or is it a new product that must be purchased separately? A typical question about modules might be:

• Has your company created any modules in the past five years? If so, are they included in the current version of the software at no extra cost and can we see them?
   

Post go-live, services, sales, and care

Know your expectations for when you’re live. Do you want the vendor to have an understanding of your original pain points and goals? Make sure they know enough to be able to help you through setup. Questions might include:

• How much should we expect to pay in annual support fees?
• What standard support do you offer? Are there exceptions to this support?
   

Get to know the vendor

Learn from the vendor-buyer partnership and be flexible. An enterprise software partnership is a two-way street, and a complicated one could contribute to a painful or unsuccessful implementation. A few things to consider:

• Does the button really need to be blue? Meaning, try not to get bogged down in the little things that don’t change the effectiveness of your process.
• Can we rely on this partnership? Nothing is more exhausting than a bad relationship with a vendor when trying to learn a new software.
• Where will our office and institution be in ten years? Purchasing a software is often a long-term commitment. If you cannot see your institution using the software in ten years’ time, you should think about retreating from the process.

These are just a few key points in myriad discussions that should take place during your search and purchase process for an enterprise software solution. Remember that the most important part of buying a new software tool is communication. Make sure that this is something both your office and the software company wants to accomplish before moving forward with a purchase.