Avoiding Software Vendor Selection Process Mistakes

Choosing a vendor and software solution before defining your business needs is a surefire way to select something that doesn’t meet your requirements. You’re likely to either pick a solution that will not serve all your needs or pick a solution that is much too complex and expensive for your organization (it's like buying a jet to travel a few blocks).

The sweet spot in the software vendor selection process is found where your business needs overlap with a software solution’s offerings in balanced proportions. Too little overlap, and your needs won’t be met, while too many added features that significantly exceed your business needs can result in money wasted on features that don’t serve your organization.

In our experience, the four most common software vendor selectionprocess mistakes can be avoided by clearly defining your business requirements, taking a ‘vendor agnostic’ approach to procurement, defining what you do and don’t want in your software, and working with a business-oriented project manager.

For success in the vendor selection process:

1. Don't Start with the Tool in Mind. Before you can pick a solution, you must fully understand the problem. Build a business case, scope current and future processes in your organization, and conduct an environmental scan across similar companies to get a clearer sense of your technology requirements (and what you don't need).
2. Be Vendor Agnostic. Remaining vendor agnostic is critical to making a well-informed and unbiased decision. Do your due diligence by establishing and testing potential vendors across a variety of use cases to make sure their offerings are compatible with your needs. Do your homework on available contract types so that you know your options and can avoid costly misunderstandings.
3. Fit & Future-Proof Your Scope. Be diligent in defining the scope your software vendor needs to meet, now and in the future. You don’t want to buy a software that your organization will outgrow quickly, but you also don’t want to pay for increased functionality that you won’t ever need. The 'sweet spot' is where there is a balance between meeting your current needs and the availability of future integrations, without too many additional functionality distractions.
4. The Project Manager Drives. Companies that include a business-oriented project manager who does not have a pre-existing vendor relationship are able to ensure that there is someone who’s objective and directly responsible for promoting the company’s best interests. They’re responsible for asking the tough questions, managing the scope, and taking ownership of the process, project information, and vendor relationship to ensure all parties are pulling in the same direction.

To learn more about the actions you can take to ensure your vendor selection process is a success, download our full whitepaper below.