Software Selection Process Steps
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1 TGI Software That Drives Business Performance. SM Software Selection Process Steps Technology Group International 6800 West Central Avenue, Building I, Toledo, OH Toll Free: (800) Office: (419) Fax: (419) Copyright Technology Group International. All Rights Reserved.
2 Introduction When reviewing potential software suppliers, many companies tend to focus only on the potential product s functionality and cost. Although these elements are important to the selection process, this methodology neglects four additional areas of significant importance. A supplier s ability to deliver product services goes well beyond price and feature options. Supplier Criteria for Software Selection Within these six main categories lie additional selection criteria, with each requiring significant review prior to choosing the final supplier of choice. While understanding the supplier criteria is only a portion of the entire selection process, it is best to review and evaluate this alongside other selection factors. This list is best utilized as an element of the overall software selection process and should be used in conjunction with other elements such as the RFP response, on-site demonstration, and references. Page 2 of 5
3 Corporate Vision What major organizational changes has the supplier made in recent years? What major product changes have occurred in recent years? What major product changes does the company foresee or have planned in the coming years? What level of involvement does the executive staff have in the company s daily operations? Is the executive staff knowledgeable of industry trends and developing technology? Technology and System Architecture Is the technology robust enough to handle current and future transaction load? Is it scalable? Is the system s speed acceptable for daily usage? Is source code provided so customizations or modifications can be made without hefty charges? Do customizations hamper upgrading to future software releases? Does the package allow a number of database and server options? Is the software ODBC compliant? Does the software support ecommerce, RF and bar coding, and EDI transactions? Does the software support multi-company, multi-division, and multi-currency environments? Are there any restrictions to this type of environment? Product Functionality Does this package meet the overall requirements listing? Is the menu structure easy to follow and understand? Are the help files easily assessable and easy for users to understand? Can the user customize help to meet the individual needs of the organization? Is the product overly complex or too sophisticated for the average user? Are there standard reports available, and are they useful? Product Cost Are the license costs justified given the functionality offering? Is the required database affordable? Are annual maintenance charges reasonable and in line with the industry average of 15-22%? Page 3 of 5
4 Are payments for annual maintenance charges in line with industry norms of being due within 90 days of contract signing or some other time frame? What is the true implementation services-to-software ratio for implementations with comparably-sized companies? This can range from a 1:1 to 5+:1 servicesto-software ratio depending upon the given software supplier and its track record. Can the estimated ROI be achieved with this product? How quickly can payback be received? Service and Support Was the team comfortable with the sales process and representative? Were the team s questions answered in an open and honest forum or were they avoided by the supplier? Can the supplier provide a complete turn-key solution? What type of project management is available? What type of training is available? What is the average technical support person s experience level and tenure with the company? How quick are non-critical software bugs fixed? Is 24/7 support available? Is ASP available if desired? Can the supplier meet the required go live date? Does the supplier offer business process re-engineering as part of the implementation process? Does the supplier have experience in industries similar to yours? Supplier Longevity How many years has the company been actively engaged in this software industry? When was the product s first release? What is the current release version being quoted? Has the company been consistently profitable year over year? Has there been recent turnover in the management staff? Over the last year has the supplier increased or reduced overall headcount? Are customer references available? May I visit a customer reference site prior to contract signing? Page 4 of 5
5 About TGI TGI is an industry-leading enterprise software solution provider to small and mid-market manufacturers and distributors. TGI s exclusive focus is on the development, implementation, and support of Enterprise 21, the company s fully-integrated business management software solution. TGI is a privately-held organization with one of the highest revenue per employee ratios in the ERP software industry. Find out more by visiting our website at or by calling us at (800) or (419) Page 5 of 5
Software Selection Process Steps
TGI Software That Drives Business Performance. SM Software Selection Process Steps Technology Group International 6800 West Central Avenue, Building I, Toledo, OH 43617 Toll Free: (800) 837-0028 Office:
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