The Global Phoenix - Issue 2 April - June 2017 | Page 17

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Costs – how to get the full
picture?
When shortlisting suppliers and comparing
costs, remember that you may not always be
comparing like with like in a number of areas.
Firstly, some suppliers have a fixed pricing model
and others use a scalable model, which can
make them difficult to assess against each other.
Fixed pricing has the advantage of providing
certainty in terms of both initial and ongoing
costs but may initially look higher, while variable
pricing might well produce lower initial costs but
will change and likely increase over time.
If the pricing model is variable, the software
provider will charge on usage – for example,
a ‘per calculation’, ‘per user’ or ‘per country’
licence. To assess the long-term costs of the
software you will need to estimate the level of
use you think it will have – possibly down to the
number of entries in a database. You are likely
to be buying into the software for some time so
you will need to try and anticipate any potential
growth in usage over several years to be able to
assess the full impact on your costs.
Secondly, beware ‘optional’ extras. For example,
if training and support packages are quoted
separately they may seem to be optional and
a way of potentially lowering the cost of the
project, but if it’s not possible to use the software
without them, can you really avoid them? Make
sure that ‘optional’ extra costs really are optional,
or factor them into your calculations now.
Finally, look out for hidden and other costs.
Some configurable software will need a
dedicated in-house resource to manage
its updates, maintenance and company
configurations, for example. Such costs won’t
be covered on the supplier’s quote but you
will need to factor them into the overall project
budgets. On a similar note, don’t forget that if
you’re buying the software separately from the
data you will be using in it, you will still need
to buy that data and consider the time and
resources required to upload it to the tool.
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Do you need the software to
work with other tools in your
management toolbox?
You probably use a number of systems to manage
different elements of your job. Will your new software
need to integrate with or connect to any of them - your
payroll, for example? Integration at some level will
reduce or potentially eliminate the need for entering
into two separate systems and the risks of error and loss
of time which go with that.
Can your supplier provide examples of where such
integrations have been achieved and how? A provider
with experience of integration projects will have a better
chance of providing both an accurate estimate of time
and resources required, and a solution that will meet
your needs.
9
Does it offer a good user
experience?
Think about not just whether the tool will work, but
how you will feel about using it. Is it intuitive and
attractive? Will it save you time? Ask how the system
was designed. Systems that have been designed in
conjunction with users will in all likelihood provide
a better user experience than one designed by
programmers alone..
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Can you request
a trial?
Having a trial can be very informative and is probably
the most instructive part of the buying process, but
you ask for a demonstration first. This will allow you to
find out what the tool can do and how it is designed
to do it and then you can go back to your desk and
test the claims for yourself. Otherwise, you may be
faced with a potentially large and complex tool and
little idea of how to make the most of it. If you are
considering customisation, this is the time when your
ideas are likely to crystallise as you see how the tool
works in the execution of your day-to-day activities.
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