Selecting the right software and software vendor can be a challenging task.
The right software can help streamline your projects, keep your workforce safer, lower your negative environmental impact and empower your organization. On the other hand, the wrong software can impede your workforce and ultimately prevent you from delivering a quality product or service to your customers.
On average, bad software costs the U.S economy over $60 Billion annually.
We’ve outlined six ways selecting the wrong software vendor can cost you:
1. Business Disruption
Selecting, purchasing and implementing new software requires a great deal of time and often involves many people from across the organization. Poorly executed implementations can impact the productivity of key project stakeholders by diverting their attention from their primary responsibilities, impacting project timelines and regular operations.
Rather than improving efficiency, software that does not meet requirements may force your users to consider additional software to fill the software’s limitation or find tedious ways around deficiencies.
2. Replacement Costs
Once the decision has been made to abandon a particular piece of software, the cost of terminating any existing agreements with the vendor and replacing the software may end up doubling or tripling your initial budget. The transition period from the old system to the new system presents many redundant time and financial costs as your organization re-initiates the process of selecting, scoping and purchasing new software. In some situations, organizations have been forced to keep the old software in production, even after implementing a new piece of software, as data and internal processes are migrated.
3. Decreased Future User Adoption
The wrong software can impact employee confidence. Software projects are often rolled-out to end-users with many expectations of how the new technology can improve processes, efficiency and business overall. If the software crashes often, is buggy, or fails to meet requirements, end-users are likely to abandon the software or try to work around its limitations. According to a recent study, about 28% of software that has been installed in organizations across the U.S goes unused. Unsuccessful software roll-outs can have a significant impact on user adoption for future implementations, impacting your organizational culture for many years to come.
4. Public Image
A poorly implemented piece of software or bad roll out can impact your organization’s ability to deliver a quality product or service to your clients, may increase response time or may produce errors in customer data. When regular operations are impacted by new software, your organization’s ability to deliver on your brand promise can be compromised. This can have a negative effect on your organization’s reputation and sway your relationship with clients or prospects.
5. Lawsuits or Fines
The wrong software vendor can also leave your organization liable for unfulfilled orders, service disruptions, data breaches or overdue regulatory requirements. If your organization depends on software to execute its environmental, health and safety (EHS) program, choosing the wrong software can negatively impact your audit preparedness, leaving you open to fines, notices of violations and increased insurance premiums.
6. Lost Revenue
Ultimately, selecting the wrong software vendor can have a significant impact on your organization’s bottom line. The financial costs of the software itself can seem small in comparison to the lost revenue resulting from missed sales opportunities, lost clients, unfulfilled orders or mismanaged data.
Although there are many costs associated with the wrong software or software vendor, the right software can be an extremely useful tool for your organization and the right software vendor a partner in your success. Before selecting a particular software vendor, it is important to do your research and ensure that your vendor of choice meets your project requirements, has a solid implementation methodology and proven success with similar clients. Ask for client reference, review case studies the vendor has produced and research their track record before selecting a software vendor.