Some businesses have in-house IT teams who can build the technology solutions they require to run their business. However, most of the time, companies in need of solutions for their technology can turn to software companies. It’s good that the market is full of vendors that offer solutions that cover everything from managing projects and data analysis (and everything between).
If a company isn’t careful in selecting and evaluating an application vendor, the resulting “solution” can cause more issues than it resolves. It is essential to follow the steps step by step before selecting a vendor to ensure that the solution they offer is the most effective and suitable option for your particular circumstance. Below, the 16 members of the Technology Council share their expertise on the steps companies should follow before negotiating an agreement with a software company.
1. Begin With A Data-Driven Approach
Know what you want to achieve. Start with an approach that is based on data. Find out which specific data set –will later form your business’s rules that will be the most effective to help you with your analytics and ensure your business’s success. Consider data as a source of energy. You cannot feed a gas engine with firewood and expect it to run. You cannot run your business with software that doesn’t provide the precise information you require to succeed.
2. Think In Terms Of Your Entire Tech Ecosystem
Consider the “ecosystem.” The “ecosystem” definition should encompass both the external and internal ecosystems in which the software must work to solve a problem. This is because today’s software world cannot function independently, such as security, data, APIs, processes, and more need to be integrated with the other software tools. Thus, consider the entire process for success.
3. Look For Agnostic, ‘Plug-In’ Solutions
It’s crucial to ensure the vendor’s solution is open and future-proof. You do not want to be locked to a particular platform. Incompatibility and flexibility can result in expensive integration and performance issues later on. I suggest using top-of-the-line solutions that use cloud technology and can connect to your existing infrastructure using no-code solutions.
4. Look For A Platform Solution
Do not look at that “best of breed” solution for all your needs, or you’ll find yourself with so many options that it becomes overwhelming. I’ve experienced this numerous times. Instead, consider an option that is based on a platform. Platforms are always able to cover more applications and make it easier to complete your work.
5. Ensure The Solution Has Strategic Value And That Your Team Can Implement It
In the first place, you must ensure that the software is a strategic asset for your business. It’s also crucial to ensure that your business has the resources and people to incorporate the software into your workflow when it’s installed instead of sitting it around as an award.
6. Take A Look At Their Security Policies And Practices
The most important lesson from the supply chain hacks that have recently occurred (such as those that happened in SolarWinds and Kaseya) is that your security is only safe as the trusted vendors you have. Cybercriminals are increasingly looking for vulnerabilities shared with third parties’ suppliers as an opportunity to attack more extensive networks. Beyond analyzing their infrastructure and systems, companies must also examine their partner companies’ security guidelines and procedures. Carlos Morales, Neustar Security Services.
7. Talk To Multiple Vendors, And Rank Them Via A Matrix
Be sure to talk to at least three different vendors in the area you’re “shopping” for, and do not believe everything is written on the review websites. Some review sites allow businesses to buy positive reviews. After selecting one of the vendors as a finalist, you should conduct at least two references. Please make a list of precisely what you’re looking for, and let each vendor rate themselves in comparison to the other competitors.
8. Ensure Your Needs Align With The Vendor’s Future Roadmap
Check first whether you’re aligned to the business objectives of the vendor to ensure their product’s focus remains relevant in light of your requirements. Then, go through the vendor’s product roadmap to ensure you benefit from their future innovations. Finally, request an initial trial period during which you can test their product with your data, if it is possible. Demos and data samples may produce different results compared to using the software under actual situations. – Arman Eshraghi, Qrvey
9. Determine The Total Final Cost
Assess how much you pay for your equipment for each factor like storage, computing additions, and more. Review the small print and run a reference check with an independent assessment vendor.
10. Don’t Overlook Ongoing Maintenance
A common mistake that companies make is the ongoing maintenance and operation of the product they’ve purchased, whether software as a service or on-premises technology. Make sure that it can solve a business issue and is user-friendly, and also ensure that you can operate and manage it in the long run. For example, can you alter its configuration (does it have a sandbox?) or upgrade it and run it without downtime?
11. Attend One Of Their Events
Ideally, you should attend an event the vendor has planned in which you get to learn directly from their clients who are making use of the solution and what positives and issues they’re facing. Events on the web provide a taste. However, real-time customer meetings are ideal when they are local near you.
12. Speak To Current Customers Whose Business Is Similar To Yours
Review, ask questions, and confirm. Request the names of comparable businesses that the vendor has provided services to. Check out what they offered and then contact them regarding the vendor. In nearly 90% of the instances, the vendors providing services that I required could not provide a list. Requesting this list saved me a great deal of time when choosing an experienced vendor.
13. Don’t Rely Only On The References Provided By The Vendor
Contact existing customers, not just those given by the vendor for reference–to learn more about the “real-life” experiences with the software. One way to start is to note which organizations the software vendor advertises as its customers and use your network to locate the appropriate contact for those businesses. So do not rely solely on the names and brand names that the software vendor provides you with.
14. Insist On A Security Assessment Of Their Code
Vetting companies should provide an in-depth security analysis of their software. Software composition analysis can scan the application’s binary to create a software bill of material and identify weaknesses that are not obvious to the naked eye. Because most software applications contain open-source components and code from third parties, managing embedded risks (such as the recently-discovered Log4j vulnerabilities) is essential.
15. Carefully Review The Terms And Conditions
Read the “Ts and Cs”! Be aware of the conditions and terms of the contract you’re signing. Who are the responsible roles for the solution supplier, the software provider, and your staff? Consider the risks for the undertaking and who will be assuming the risk.
16. Establish Good Working Relationships With The Vendor’s Key Personnel
Often, IT departments choose an “easy” path to purchase through big companies. The IT team and the business executives must collaborate and invest the time and energy in performing the necessary due diligence before making a purchase. Start by building trust and open communication with the vendor’s top staff. They’ll ensure that you benefit from the software.
