06/12/2011

How to Evaluate a Software Solution

Implementing a new software solution for your Transport Logistics business is like replacing the heart of your business, you really can't afford to get it wrong, writes Anselm Waterfield

ATN Magazine, December 2011

There will always be noise around technology's ability to transform a company's transport or logistics operations, yet it wouldn't be unfair to question if, in reality, the results for some companies are the complete opposite. Too many, in fact, get it wrong?

Often purchasing decisions are based on loose or rushed evaluations resulting in a software solution that falls well short of meeting the needs of the business. In other cases, companies will spend considerable time evaluating market options only to wind up not making any investment at all, aside from lost time involved in the process.

Undoubtedly a Transport Management Solution is a major investment for the business and as with any major investment you want to be certain that it's ticking all the boxes when it comes to meeting the critical needs of the business. So, why do so many companies trip up in the evaluation process or even worse, stall?

This is not entirely surprising if we consider the high time and capital cost involved when making a significant investment decision such as this. When it comes to the crunch, businesses want to be able to quantify the returns. Not being able to get a grip on this in the evaluation process means that many play it safe and shelve the idea for when 'the time is right'.

Finding the right solution and implementing it to support, not restrain the business, means finding a solution that really fits. With the right questions the 'best fit' supplier should emerge from the process with a product that will support the business with its operational and growth objectives. 

A straightforward process

Firstly, get your senior managers together and decide where the business needs to go and what role IT can play in getting it there. Often IT is brought in to solve a specific problem, but the opportunity is missed to obtain a long term solution. Think strategically, don't do a quick fix.

Now you need a plan which includes a timeline. It is critical that the plan forces stakeholders to clearly understand the processes that need to be supported as this will enable you to establish a list of criteria that the software must provide. Now that you have your list of 'must have features', use this as a scorecard in the evaluation process. The evaluation process should place all suppliers on a level playing field. By using check boxes there can be no ambiguity when the time comes for you to assess the system capabilities of each supplier.

Next, invite a short list of suppliers to discuss your needs with you and establish what they are able to offer. Discuss your criteria with them and ask them to present how they will address each specific need that you have identified and what costs are involved.

Be sure to gather all the project costs including hardware and network costs. Ask what the ongoing management costs of the system are. If further development is required to meet your needs make sure you get a clear understanding of the cost and timeframe for the extra work to be carried out.

Finally, you have your preferred supplier. Remember, think of this as a long term investment. Include in your evaluation whether you can work with the supplier over the long term and consider the match between the supplier's capabilities and the future growth plans you have for the business. This will require you to determine and quantify the potential return on investment to support your business case and a good supplier should be able to guide you during this process.

Understanding the differences between solutions on the market and the subsequent impact they can have on your business can be hard. However, defining detailed criteria for your business and employing a systematic approach to the software evaluation process should make it straightforward. Experienced transport management software suppliers should be happy to assist you draw up this criteria at no obligation.

Anselm Waterfield is the CEO of TransLogix Systems Pty Ltd

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