The Right IT Partner Minimizes the Risk
News Story by Kay Ewbank
May 19, 2003
Kay Ewbank, IT consultant and technology writer, points to ten signs that you've outgrown your business management solution. If they look familiar, read the article that follows, in which she explains how choosing the right partner can minimize the inherent risks of investing in new business management software.
Top-Ten Signs That You've Outgrown Your Solution
- The level of user complaints has risen significantly.
- Employees ask to add non-authorized software to the system.
- You can't fulfill requests for information from partners or customers in their preferred format and timeframe.
- You're still not making full use of the Internet.
- You have gaps between front-end and back-end systems that are plugged by unsatisfactory customized solutions.
- The software inhibits users from completing tasks.
- You have multiple, non-integrated information stores.
- You find yourself contemplating hiring contractors to write add-ons.
- Support costs have risen.
- You don't have enough support resources.
Which Partner?
Choosing a business solution can be daunting. Get it right and efficiency will rise: get it wrong and your business will suffer. When you're trying to identify the right business solution, it's vital that you find the right partner.
The most important points to consider are the partner's reputation, coverage in your region and stability.
First of all, an established reputation means you can be sure of the partner's credentials, and its track record with customers.
On the other hand, a partner might offer great advice, but if they have no experience in your regional market, it might not be applicable.
The last thing you want is an unstable partner who goes out of business and leaves you with no back-up.
No Unpleasant Surprises
Predicting ROI is another area where the help of a good partner can be invaluable.
First, the partner should be able to predict the overall cost of the software.
Then, they need to predict the business value that the solution will bring to the business accurately and honestly.
Some of this is very simple, but it's easy to forget some aspects or to underestimate other costs, resulting in an ROI figure that will come back to haunt you. For example, do you really have the expertise to work out the realistic costs associated with developing or customizing the software, then administering it?
If you have an existing system that you want to replace, you will know instinctively how the system can be improved, and what the likely cost-benefit of those improvements will be. If you can pass on this concise information to the right partner, they'll be in a much better position to predict the likely cost of the system, and maybe even give you a precise cost quotation.
As Gary Barnett, research director at the IT analyst group, Ovum puts it, We sometimes see relatively small companies developing their own in-house solutions, and they could nearly always get something much more suitable, more quickly, and more cheaply by going to an experienced partner.
Your Built-In Competitive Advantage
Finally, a partner should be able to help you pinpoint what it is that differentiates your business. For example, many companies focus too much on areas such as their accountancy system.
What differentiates your business, however, isn't likely to be how you sort your stock items; it will be how you relate to your customers and partners. Barnett says that you need to differentiate between business software and a true business solution.
The first merely offers a 'utility' function like electricity you need it to carry out your operations, but it isn't something that your customers will notice about you.
That said, a partner who really knows your industry sector will almost certainly have done similar things for other people. They'll know the hidden pitfalls in particular solutions, and will be able to highlight plus points that you wouldn't otherwise have noticed.
Summary of What to Look for in an IT Partner
- A trusted heritage, who will be around for the long haul, and can assure you of ongoing high-quality service
- Ability to predict the likely cost of the system
- Can work with you to pinpoint and leverage what differentiates your business
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