Roadmap for an IT software selection process

Selecting new business software usually comes with all kinds of challenges. Michel Hoeijmans is Principal Consultant at Improven and has years of experience in IT selection processes. He shares a step-by-step plan and several tools and tips for successfully selecting a provider and its software system.

"Always start with a feasibility study on the business case first," begins Hoeijmans. "Measure how attainable the requested improvements and savings are and whether the selection actually achieves these objectives." This step may result in having to go back to the drawing board and adjust the business case. After successfully completing this step, one can move on to step 2: the strategy session.

Strategic principles

The strategy session, which usually consists of one or more interactive workshops, identifies the right strategic, process and IT principles and processes. "The Business Model Canvas (BMC) is a good framework for this, as it includes the different elements, which are important," explains Hoeijmans.

He explains how the desired processes, functions and roles are then grouped in a creative and sharp way. "This creates insight into the required functionality, which we translate into desired requirements, which we look for in one or more standard packages. Based on this, we work out a number of application replacement scenarios," says the Improven expert.

Translation to use cases

The processes are then translated into so-called 'use cases'. "These describe the most important sub-processes, activities and system requirements," Hoeijmans explains. Besides picking up internal input, it is valuable to bring in external best practices from the market. "This allows organisations to define processes that are at the forefront of the industry." Once all use cases have been identified and described, initial market exploration can begin. This should include asking, "Which vendors and software are the best fit for the organisation, in terms of size, culture and price?

Through an RFP (request for proposal), selected suppliers are asked to prepare a use case demonstration. "In this part, we address the 'what' question. The supplier shows how it solves the customer requirement in practice within its software," Hoeijmans explains. During the demo, but also in the assessment of the request for proposal, it is important to test the solution - as well as the 'fit' with the organisation - now and in the future. Hoeijmans explains: "For example, you replace an ERP system once every ten years on average. So it has to be good now, but also in the future". Or, "to what extent can the package support the expected (market) developments?", Hoeijmans adds.

ear conducting such a fit-gap analysis, Improven has developed a framework that considers the following aspects:

• Strategic Fit: How well are the strategic objectives supported and does the system support the business case?
• Process Fit: How well does the software support the desired processes
• User Fit: Is it a system that users can and want to work with?
• Data Fit: Can the system support all required data?
• Technical Fit: Is the system easy to fit into your IT architecture? Does the system interface easily with other applications?
• Vendor Fit: Do the method and supplier fit you?
• Price Fit: Does the system fit within the pre-established budget from the business case?

After the initial selection, it is determined whether it is useful and desirable to organise a 'deep dive' with the preferred supplier on some processes. "This often creates more insight into the software itself and its effect on the processes," Hoeijmans says.

Contracting

Software selection does not stop there. Hoeijmans: "It does not stop until a contract has been concluded and the supplier's proposed implementation plan has been approved. He advises: "So have the supplier draw up a thorough plan of action beforehand. How do they expect to set up the system, given their own commitment but also the commitment of their own organisation. Also have them describe how they expect to successfully implement the system. Formally record these agreements during the contract phase and weigh the implementation plan in the selection."

Finally, Hoeijmans indicates that it is essential to treat the selection process as a project: "Don't treat it as an activity that can be done on the side, it is far too important for that. Set up a formal project organisation for this."

An additional advantage is that at the start of the implementation phase, a team is then already in place that is familiar with all the ins and outs. According to Hoeijmans, it is also a good idea to involve the 'business' (people outside IT and end users) right from the start: "Replacing a system is not just an IT matter, but mainly a project that requires the support and staffing of the business. Involve key users and the management organisation early on."