Selecting the best systems for your business

Dear Readers,

Earlier this month we discussed the most promising opportunities to leverage technology in any kind of business, be it a small or larger company and independently of the industry you operate.

However, adopting a new system is an important decision that shouldn’t be taken without careful research of different solutions and a clear understanding of which need you are trying to solve for.

Here's a snapshot of the basic 3 steps to follow before making a decision:

1- Research: identify the most used systems available in the market for a given problem or issue you are trying to find a solution to. We prepared a list of things to map out when doing your research. However, we find extremely important to think of your needs now and in the next 2 years in line with your business plan. The cost of change from one system to another in the future can lead to operational disruptions, loss of crucial data/information and uneconomical savings. Make sure you identify at least 3 providers for each need but no more than 5 to not overburden your business.

2- Ask feedback: a clever way to shortlist your favorite solutions is to identify comparable companies that are currently clients of a given system. If you are a single unit café, unlikely the solution used by Pret a Manger will be appropriate to your business. Also, make sure to check customer ratings through your own research online and offline. Hopefully you will have peer business owners within your network that you can directly ask for feedback. Sometimes differences in easy-of-use and after-sales are not worth the bargain of a cheaper solution.

3- Try before committing: before going ahead with any solution, test at least two providers. Demos – exclusive or group sessions – exist for virtually all solutions we have seen in the market. Very common is also a period of free trial without commitment – 7 days usually. If you take the time to engage properly with one solution after a demo session, try to request a longer free trial so you can test more extensively, in different situations and by other colleagues within your business that are likely to use that system solution.

3 key things focus your research on:

1- Integration with other systems: especially for smaller businesses, it’s unlikely the a more sophisticated and complete single solution will be the most economical for your business. From managing payroll to accounting systems, it’s important to identify systems that can easily integrate when they need to.

2 – Subscription model: make sure to identify the subscription model – whether it’s an upfront and monthly cost or software-as-a-service (SaaS) with no initial capital investment. Some solutions with specialized hardware also give the opportunity to lease or own it – but usually with a minimum contractual term if they are more cost efficient. Make sure you understand the costs and commitment you will have with that solution.

3 – Hidden costs for add-on functionalities: sometimes, the cheap is expensive. This is especially true for SaaS that promise a very low fixed cost which seems like a no brainer vs a competing solution. Make sure you understand if there are any hidden costs not accounted for such as detailed reporting that are key for deep understanding of your business performance.

4 – After-sales: sales are usually available through different channels, longer available hours and very responsive. However, once you commit to a solution it’s important to understand which channels are available as a client and support hours you can count on. If your business operates until late hours but your support closes at 5pm, there might be operational disruptions. You might not want to take this risk especially for key systems – especially if the support is located in a different time zone!

By keeping in mind these tips, you can make informed decisions to leverage technology as a value creation opportunity from the start.

Contact us and let us help you to develop the best technology roadmap for your business and needs.

Best Regards,

I.V. Capital's Team