Solution Explorers Blog

I recently came across a quick-read article with posts from two CIO’s documenting their advice on companies seeking to select a new ERP software system. Their comments summary is:

- Set proper expectations – be realistic.
- Recruit senior management support, buy-in.
- Carefully select the product vendor, someone you can “partner” with.
- Get organization-wide participation, solicit feedback.

Source: Network World, http://www.networkworld.com/news/2010/051310-erp-systems-how-hard-can.html?page=1

These two CIO’s did a wonderful job of highlighting key aspects of a software search that are all too often underestimated. This reality isn’t because companies enjoy throwing money at problems in “hope” of finding a fix. Although some businesses are guilty in this regard my experience suggests instead that business leaders are not skilled at finding software. After all, how many people can you name that listed this on their resume? Yea, me neither…

The process to find software, the “right” software, is not just some task or to-do, but rather a project with multiple tasks and milestones. This project requires skill and planning. In fact, I’ll add two specific items to the bullet list above – planning and documentation. It’s interesting how so many software vendors want to jump right in to product implementation once they take on a new client. Likewise, many businesses jump right in to calling vendors and scheduling demos after minimal research. What about planning! What about documentation of your research and findings? I contend that if more software buyers would increase just these two actions alone then a significant amount of time and dollars will be saved by both software buyers and sellers. Tip: Before investing in software, invest in preparation.

Running a business is hard work. Finding software to address your business needs and opportunities can be too, but it doesn’t have to be as hard as we often make it out to be. If you’re business is considering an ERP, or any type software actually, system purchase then be sure to do the fundamental things that you likely already do with other projects within your company – plan and document. Finally, do these two BEFORE reaching out to software vendors directly; in doing so, you’ll save time, money, and be rewarded with an investment that won’t leave you with doubt and regret.

Businesses – what is your process when exploring a new software system?

Vendors – how do you reign in a buyer that’s clearly putting the cart before the horse?

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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 recently did some collaborative work with Robert Guild, certified QuickBooks Advisor with Austin, TX-based QBCoach. In his preparation to speak with financial leaders and advisors he asked to interview me about the overall concept of Solution Explorers. The result was an effective, fun 9.5 minute interview video in which we covered the following:

• About Solution Explorers.
• Why was Solution Explorers created?
• Example of a problem – Case Study.
• Buyers – what questions to ask?
• Describe your ideal client.

YouTube interview video: About Solution Explorers

It’s interesting…helping others identify the right software solution for their organization seems like such a simple concept. However, I’m often asked “what exactly do you do?” Amazingly, aside from very high $ consultants representing large CPA and/or IT Consulting firms this service model doesn’t appear to be a broadly available service.

Hopefully, the option of outsourcing this time-consuming, skilled project activity will grow so that small and medium sized businesses will be able to focus more on their strengths while increasing the probability of investing revenue or funds in a business solution that effectively meets their current and long-term business software needs. After all, Solution Explorers aims to “transform the software buying and selling experience.” With increased resources and willingness to outsource specialty tasks I am convinced that both buyers and sellers of software technology systems will begin to experience more rewarding ways to interact.

Your thoughts, and even questions, regarding this business concept are certainly welcome.

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In the last post regarding the software exploration process (the effort to find the right software for your business needs and budget), we covered some standard ways to find software. The resources that were referenced are somewhat common to anyone that has ever taken on such a project. Now, I want to actually reference some specific online resources that I have identified and in specific cases have found to be very useful in an effort to narrow the solution options based on specific buyer criteria.

Accounting software search sites:

• FindAccountingSoftware.com
• AccountingSoftware411
• Accounting Software Library

General search sites:

• Capterra
• TEC
• HRIS Software Buyer’s Guide
• Project Management Software Directory

Reviews sites:

• TopTenReviews
• CNET Reviews
• Idealware Nonprofit Software Reviews

This is certainly not a comprehensive list, but each resource listed above has shown value in my service to clients in one way or another. The challenge is to know when to use which online tool. Also, in using certain services, timing may be important too because some of these inherently open you up to speaking with software vendors – i.e. some are research tools and some are vendor inquiry resources. Therefore, understand this ahead of time and be prepared beforehand by having your Needs Analysis and System Requirements information ready for reference.

As always, I am interested in learning of resources you have used and found helpful. You never know when your comments may help another company struggling with a software search project.

I have another post planned for this subject area before we move on to Collaboration: Vendor Outreach, Presentations step. Additionally, I’ll be sharing soon a video interview I recently had regarding the idea of Solution Explorers, including a chance to discuss a Case Study and my ideal client.

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When you are talking is the other person on the other end of the can listening or also talking? Be honest, haven’t you wanted to put duct tape over the mouth of a salesperson before? In some cases, we buyers may need to share in some of the blame.

This is a really brief post but one that fits well in between the two software Discovery phases – Needs Analysis and Solution Exploration. I’ve been guilty so many times of moving on to discovery phase two before I and the buyer were ready. Let’s demo! Yippee! In fact, I’ve been guilty many times of interrupting the buyer just as they were explaining their issues, pains, frustrations, etc. Why? Because, as the article below illustrates, I could see where the conversation was going and was ready to talk about MY solution.

Read more at – http://www.smartsellingtools.com/3questions.html

Here’s the key point I want to make before moving on to the next post in the Find Software – Tips for Buyers series: Discovery – Solution Exploration. That is, as a buyer you really can open yourself up to software sellers too early. When you do, many of these sellers, not all though, are all too ready to TALK about THEIR solution and why you should buy from them. Again, this reality supports the importance for buyers to thoroughly consider their business and functional needs – see http://bit.ly/brliKa – BEFORE making their search public. As the article illustrates so well, even us well-meaning salespeople fall into the trap of interrupting you quickly and once that happens it is easy to become distracted (pulled in, sold, consider irrelevant systems, etc.) and frustrated (give up, delay, buy the wrong system, etc.). Don’t let this happen to your business.

Remember – Proper Planning Prevents Poor Performance – so be sure and brainstorm, collaborate, and document YOUR needs before moving on to the exploration phase of searching for the business software system that meets YOUR needs. Even if you don’t talk directly with a person, Exploring online can still drain your resources if you don’t have a proper Needs Analysis in place to guide your search. Be a good steward of your time and of the time of those working for you.

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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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