What a bad enterprise software purchase will cost you

A successful enterprise software deployment is defined as one that meets or exceeds planned ROI. A previous article examined the ROI benefits that accrue from selecting best-fit enterprise software. This article considers the flip side of the coin, namely the costs incurred when an organization purchases software that is not best-fit for their particular needs, i.e. they purchase the wrong software. Under these circumstances, one of the following things happens:
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The software goes into production, and the organization lives with the limitations.
The software goes into production, but the functionality mismatch eventually causes it to be replaced.
Some modules make it into production, but the software is never fully implemented and is replaced. Continue reading “What a bad enterprise software purchase will cost you”

How to make more successful enterprise software purchases

When purchasing enterprise software, some organizations wait for the implementation phase to flesh out fully detailed requirements. See the advantages of moving this work to the requirements gathering phase of the project.

To some degree, purchasing enterprise software is a journey into the unknown. When projects start, organizations have only a very general idea of what they want and the problems the new software should solve. As the project continues through evaluation, selection and implementation, organizations learn more about their needs.

Like any journey, if you don’t know where you are going, how will you know when you get there? How will you bypass expensive detours like scope creep along the way? How will you avoid a project that does not Continue reading “How to make more successful enterprise software purchases”

Purchasing Software : How to Create a Formal Purchasing Software

It’s easy to neglect the area of purchasing in your business. Of course you buy goods and services, but you don’t always plan the purchases as well as you could. As a result, you may spend more money than they need to, buy goods that aren’t of the proper quality for your needs, or choose suppliers that don’t offer the level of customer service you deserve.

If you fail to devote enough attention to your purchasing, your cost of doing business could rise to an unnecessarily high level. As operating expenses increase, profit margins shrink, you would either have to live with lower profits or raise your prices, and neither of these choices is appealing. By keeping your costs under control, you’ll be able to keep your prices at competitive levels and maintain a desirable profit.
Purchasing Policies

To purchase wisely, you need to buy the right quality and quantity of materials or products at the best possible price and at the appropriate time from the best vendor.

The purchasing process is much more streamlined in small companies than in larger businesses, especially when the businesses are still fairly new. The owner usually decides what to buy, when to buy, where to buy, and how much to buy. As the business grows, however, the owner may no longer be able to handle this task and will have to delegate it to Continue reading “Purchasing Software : How to Create a Formal Purchasing Software”