Solution Explorers Blog

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One of the greatest challenges encountered by those seeking to find software for their business needs is that those within the organization are not “professional” buyers. Think about it…the typical business replaces its core business systems – accounting, CRM/Fundraising, HR/Payroll, Client Management, etc. – about every 5-7 years. So, the opportunity, or even value in, creating a documented process for buying software isn’t very high; much less making this a skill requirement in someone’s job description.

This industry-wide problem is certainly a key reason for Solution Explorers’ existence. However, there are other software buyer resources available and we all can learn from one another. Two recent resources that I’ve encountered are – Andrew Urban, author of The Nonprofit Buyer and Edwin Henrikson. I’m currently reading Andrew’s book and have found valuable insights that every software buyer, even seller, can benefit from. As Andrew was advertising the book release via the LinkedIN Group – Nonprofit Technology Network – Edwin posted some insightful comments; of which I now want to share with you for consideration. I hope you find these of value as I did.

Comments by: Edwin Henrikson (re-posted with permission)

My key points regarding technology purchases are as follows…

1) Requirements: writing the requirements are the first step. The largest barrier is the staff may or may not know all the “rules” as defined by the funder(s) or their own agency. Many if not most staff operate on what I’ve come to call “tribal knowledge.” Many classic re-engineering issues come into play here, like “paving the deer trail” rather than building a highway.
2) Implementation: The capacity/ability of staff to adjust to the new technology or system is often over-looked. Agency culture with regards to change is an essential element to success. Also, simply having the talent and time to adopt the new system (train, use and improve) is often a huge barrier. With new systems often comes new skill requirements. Salesforce.com has found this issue as a critical barrier to donating systems to nonprofits. Complex Donor management systems and accounting systems also fall victim to this barrier.
3) Scales of Efficiency: many nonprofits can’t afford professional and complex solutions. However, even if the culture and talent of the staff can adopt a new system, simply having enough staff to manage the system well and train others is often a barrier. One way to overcome this barrier is to leverage shared systems or partner with other nonprofits in the area to pool resources.
4) Start Easy: Don’t overlook continuous improvement over the radical forklift replacement approach. Two actions can go a long way to freeing up capacity to then engage in major improvements – start with the basics, and consider process simplifications.
5) Technology is only part of the answer: I often tell my clients that any service is comprised of systems, people and process. All three must work together or the service suffers. I’ve seen many agencies take on changes in systems with no real consideration to how processes must change and how staff (people) will be impacted. This point ties into number 2 above. The agency can then be capacity starved to align the people and processes with the new system.

Note: Comments above were edited above as appropriate for purposes of this blog. Click here to view the full details of the originating LinkedIN post.

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I follow the TEC Blog regularly and appreciate their insights into the ERP software technology market. Their site in and of itself is quite amazing; clearly a lot of thought and work went into this service model. Recently, they submitted a post that I felt compelled to respond to regarding accounting software selection product ratings. Below is a link to the post and copy of my comments. What are your thoughts?

http://blog.technologyevaluation.com/blog/2010/03/05/accounting-software-selection-challenge-3-microsoft-vs-infor-difficulty-basic/#comment-8963

Q: Why [does] modifying your priorities change the overall accounting product ratings?

My response….

Well, one obvious answer is product differentiation. Infor and MS Dynamics are viable market solutions, as are many others such as the deep Sage product line. However, each vendor has conducted extensive market research and intentionally (key word) developed different product and/or modular features and functionality emphasis. You’ve heard it before…”if you don’t differentiate then you’ll only compete on price.”

Also, and don’t take this personal, but online product search engines are imperfect. For instance, I recently helped a business find project management software. The software that actually met the client’s needs best did NOT appear in initial searches, respected industry Top 10 lists, etc. The human part of research has exponential value; especially for businesses that want a system that exactly meets their needs – not just a short list of participating vendors.

Finally, regarding your statement, “…many software selection mishaps are directly attributable to improper assessment of business priorities.” That’s ok, but even more so “many software selection mishaps are directly attributable to”…de-emphasizing pre-search Needs Analysis (internal) and documenting System Requirements BEFORE product research and/or reaching out directly to potential solution vendors. Too many companies (buyers) open themselves up before they are really ready to buy, and that’s a costly mistake.

Note: TEC’s emphasis on “prioritizing” system requirements is spot on! It’s bad enough that most software buyers de-emphasize documenting their business needs before reaching out to potential vendors, but it’s worse to also fail to place priorities on system requirements. Doing these two tasks alone, albeit steps that require time and skill, would produce a transformation in software buying and selling; which happens to be the vision for Solution Explorers.

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Internal Discovery: Needs Analysis

This is the BIG ONE…and it takes a LOT of preparation and diligence throughout the evaluation process.

Before continuing, you may want to revisit a related earlier blog post – Key Components of a Good Software Needs Analysis – http://bit.ly/cBtlZQ .

First, discovery is both internal and external. Unfortunately, many businesses short-cut the internal work and open themselves up to vendors much too early. Two common reasons for this are – “we’re just fact finding” and “we just don’t know what questions to ask or even where to begin looking.” This direct contact with product vendors, however, means marketing packets, wordy emails, relentless phone calls, demos, and much more – they know who you are and have entered you into their database. How long do you think it will take before you’ve reviewed so many systems that your eyes get glazed over, or the water gets muddy?

It may help to view this as the equivalent of visiting the pharmacy to inquire about medicine but skipping the doctor visit to get a skilled, guiding prognosis. It’s important to “diagnose” the symptoms, hear from those impacted by any change, hear from knowledgeable resources, etc.  Do this BEFORE allowing hungry, commission-based salespeople (biased pharmaceutical reps) access to your TIME and RESOURCES. In doing so, your efforts will establish a Needs Analysis document that will guide you through a sea of software solutions on the market while filtering out those that really don’t meet your system requirements. One of my favorite sayings is “Proper Planning Prevents Poor Performance.” Be diligent, and don’t skip this preparation step.

Below are a few Needs Analysis steps to consider:

• Ask some initial questions:
  • What exactly is the problem(s) and when did it begin?
  • What has been done to resolve the issue(s) and why hasn’t it worked?
  • Who is most impacted and how?
  • Can our current software vendor reasonably help us resolve things?
  • What costs are associated with this problem?

• Talk to others:
  • Pull together internal staff that is impacted by the problem(s).
  • Call your software vendor or local consultant.
  • Post information about the problem(s) on user community sites.
  • Search the product knowledgebase, if applicable, for resolutions or work-arounds.

• Document:
  • Information from internal staff.
  • Feedback from those solicited externally or online.
  • Format findings into a categorized system requirements list.

Of course, there are more questions and the process itself can be quite challenging. However, it’s important to resist the urge of reaching out to software vendors directly until your business has taken the necessary time to consider your situation as comprehensively as possible. You’re looking for process gaps, ongoing frustrations or unresolved issues, etc. However, don’t just look at your issues. Be sure to also consider needs you have today that you didn’t when you purchased your existing system. Also, if you do invest in a new solution try to consider any opportunities that can be leveraged. These group sessions and probing questions with internal staff will likely bring this out.

Do you see now, even with this abbreviated Needs Analysis outline, why this step cannot be overlooked or underestimated if you want a satisfactory result? You wouldn’t hire anyone without first determining their role/duties. You wouldn’t build a home without a blueprint. So, don’t contact vendors or select a system without documenting your business needs. Also, if you consider this information and feel overwhelmed then give serious thought to whether taking on such a project is in the best interest of your resources – i.e. reach out to a skilled consultant that can help you get this right. In the case of Solution Explorers, we can help with this step only or service your software search needs from A-Z.

Now is a good time to add to the list above and share any success stories or processes that you use internally when buying business software. This Blog will continue to discuss the Needs Analysis process but our next post re: Find Software – Tips for Buyers will focus on External Discovery: Research, Explore!

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What happens when you make it public that your business is looking for software?

Before we look at a real online illustration, let me provide a few thoughts.

First, it seems that regardless of the particular type of solution you’re looking for – accounting, CRM, HR/Payroll/Time, fundraising, project management, etc. – there is an OCEAN (large body of…) of options on the market today. So, where do you begin and how do you navigate through all of the solutions and salespeople that want to tell you how great their system is?

Second, BEWARE of responders that jump at the chance to tell you to “look at what I have” or “can I send you our brochure on…” after only seeing a short snippet from you online. Although some referenced solutions may turn out applicable, many can actually be harmful – i.e. drain your resources. These typically come in the form of solicitations or general references, often from well-meaning folks.

Finally, there are many “FREE” software search sites online today. However, many of these provide search results based only on solutions from paid membership software vendor companies. They’re helpful to an extent but inherently exchange an “ocean” of solution options for a small pond. Therefore, be sure if you use these to also extend your search to other venues as well.

For time sake, we’ll move on, but I have and will continue to share additional thoughts on software research – a project, not a task – in my posts.

CASE STUDY

I recently came across one of those “I’m looking for…any suggestions?” inquiries from a solopreneur considering CRM software (direct source reference intentionally omitted). Instead, I’ve pasted below selective parts of the originating inquiry and then in my following analysis I’ve included some handpicked comments that were given in response. I believe you’ll agree that the post itself and replies are quite illustrative.

The originating post (partial content):

I also realised that I have customer and contact information coming in from different sources and stored in different ways.

What I’d like to do is to be able to:
1 /use my list for direct marketing activities
2/ Blog and newsletter
3/ Consolidate contacts from general enquiries

I started to specify a database for my IT guy, who I’m sure will do it – but am I recreating the wheel here, and is CRM software a better solution?

Aside from functionality, Low cost and scalability are important.

Any suggestions?

++++++++++++++++++++++++++++++++++++++++++++++++

Now, to the question posed at the beginning of this blog post – What happens when you make it public that your business is looking for software?

In this seemingly innocent case, a few responses came in the form of solicitation or general product references. In fact, they were a bit all over the map – i.e. Zoho, Sugar CRM, Salesforce.com, Highrise, etc. All of these have varying degrees of scalability and price levels. I contend that these responses, likely well-meaning, should at the very least be viewed cautiously.

A better option is illustrated by one responder who stated, “To decide which one to use you will need to make an exhaustive list of features and processes you require and then investigate all options to see which one fits the best – and then decide if it is good enough to fit your business.” Similarly, another post stated, “…you need to work out what you will use (which is not always as simple as what you need!) and what it needs to link to, THEN start talking to vendors/providers about what they can offer.” Finally, the spot on comment winner is….”I’ve seen too many CRM projects go bad because the right thinking wasn’t done up front.”

To which the originating author responded, “once I start looking at the options I realise that there is a whole world in there. After all the advice I realised that firstly, I didn’t really understand what CRM software was, and secondly that I didn’t have a full handle on what I needed.”

Go figure! The persons head must have been hurting at this point. I can imagine the response:

• “I need to do what?”
• “Where am I supposed to find the time to…?”
• “What do you mean ‘link to’?”
• ‘THEN start talking to vendors/providers…’ – “Who has time for all those calls?”
• “Can I have a mulligan and retract this post?”
• “Can’t someone just talk to me and get back to me with a short list of viable options?”

Do you feel any empathy for this business person? Can you relate to their dilemma? Once you make your software search public the water can become muddy real quick! There are just too many things to consider and most businesses I know can’t afford ($) to get this decision wrong. In summary, outsourcing this type of project is increasingly becoming a viable option for businesses. However, many will not choose this approach and some arguably have strong internal resources. Therefore, in these latter cases, it’s wise to do as much research – internal and external – as possible BEFORE allowing access to your resources by vendors associated to a particular product(s). As I’ve stated before, one of my favorite quotes is “Proper Planning Prevents Poor Performance.”

In my next few posts I’ll segment in more detail some strategic steps applicable to those that seek to find software and considering using internal resources. For those willing to consider outsourcing I’d love to hear from you and discuss your situation.

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Web 2.0 – Marketing 2.0 – Sales 2.0 – Social Media craze – our first black President – women succeeding in business leadership roles that used to be “glass ceilings” – and so on. We clearly live in a progressive generation. Unfortunately, someone forgot to tell journalist who write predictable, annual reviews on how to buy software.

I read last week another article by a journalist claiming to understand the best way to find accounting software. Actually, the content was regurgitation of software buying tips we’ve all seen many times over the years. Here are the article’s main points:

Understand Your Accounting Needs

Talk to your accountant and staff

Know your budget limitations

Reach out to other businesses and software consultants

Create your wish list

Make your business accounting software decision

Look, not searching, but re-searching business software is a major task. Reference my blog – http://blog.solutionexplorers.com/?p=67 .

This article mentioned numerous times “the next step you need to take is…” Question: Do YOU internally have the time or knowledge resources to take on yet another time-consuming task? Some businesses do, possibly a nonprofit with volunteer assistance, but most folks I talk with are struggling to find work-life balance. Are you really willing to invite numerous sales calls, marketing packets, and demos into your already busy work life? At the same time, turning to glass half-empty sites like FindAccountingSoftware.com or AccountingSoftware411.com (two sites referenced in the article as good resources) are not the answer either. That’s right, I’ve used these. Why do they fall short in helping businesses find the right software for their needs? Because after you complete their form and talk with the rep for 10-15 minutes then all they do is write up a summary and wa-la, you are handed off to multiple vendors that start sending literature and calling/emailing on a regular basis wanting to talk about how great they are. Really? Is that a good use of your time? Is that good resource stewardship? In most cases, no, it’s not. Remember, these find software resources are FREE to you. As you know, we consumers generally get what we pay for.

Admittedly, I’m just a little passionate about this. In fact, I’m building a company designed to “transform the software technology buying and selling experience.” But as I write please understand that I too am a small business owner, former software reseller, and I’ve had to make outsource decisions too. If you want things done right the first time and as efficiently as possible so that you can remain focused on your client needs and business growth then outsourcing is a very viable alternative…especially in the area of business software research. Below are brief summaries of Solution Explorer’s comprehensive 3 step process…let me know if I can be of service (Contact link at top of page).

1. Discovery—Needs Analysis

We analyze your needs (as opposed to pointing you to a standardized two page questionnaire). We look at what problems you are trying to solve, what type of software would help, and then dig deeper (probe) by interviewing the key members of your team and learning what their needs and pains are.

2. Solution Exploration
We research the world of software solutions (as opposed to referencing only vendors that pay membership fees) based on the needs analysis completed in Phase 1, and come up with a short list of viable options that we review with you.

3. Presentations, Negotiations & Agreements

Your team sees proof-of-concept product presentations (not dog-n-pony demos) and decides which solution best matches your system requirements and selection criteria. We help you negotiate the terms of the contract and review Agreements.

If you’re willing to set aside old-school, DIY software buying tips then contact me (Contact link at top of page) and let me help you take the Time and Hassle of finding the right software for your needs off your To-do list. The ROI alone is a good reason, but even more so you will outsource a grinding task to an expert so that YOUR focus can be on customer service and business development. This next step you need to take is…schedule a complimentary one hour session to discuss outsourcing your next business software research project.

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What is a Needs Analysis? In its simplest form, this is a process of identifying and evaluating problems (issues, pains, frustrations) and solutions to these problems. Stated differently, you are most likely looking at the variance between actual vs. expected results. Also, the process predominantly focuses on needs and not wants (wish list items are ok too though) and is forward-looking.

When your business or organization decides to purchase new software or upgrade an existing software application, take some time to create (or hire someone to create) a system requirements document BEFORE initiating direct contact with software providers. The requirements list is an inherent by-product of a good Needs Analysis. Just as important, don’t forget to consider opportunities that may be created via improved and additional product functionality. In doing so, you will have a wholesome view in place that will serve as the foundation for evaluating viable solutions.

A good Needs Analysis will often produce the following:

• List of current functional and reporting issues, deficiencies.
• List of current functional and reporting “must haves” to retain in the next system.
• Groups/Categories – Security, Core functions, Reporting/Analytical, Technical environment, etc.
• “Blue sky” wish list items – dream, shoot for the stars here, but be realistic.
• List of goals (purchase, configuration, Go Live) and resources (reviewers, decision makers, and financial capabilities).

Finally, don’t forget to prioritize your itemized lists because this step will guide you later in the process.

Now, help expand the definition and listed items above by sharing your thoughts. Together, we can “transform the software technology buying and selling experience.” As a result, your next software evaluation and purchase experience will surely be rewarding!

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