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We Buy Software ##TOP##



As you can see, there are a lot of factors to be considered when deciding to buy software or develop it internally. It's a decision that should never be taken lightly, so be sure to consider all of the variables before jumping in!




we buy software



It's no secret that the last few years have changed the procurement landscape. Almost every company is relying more and more on software solutions that make their employees more efficient and their work better.


As the need for software grows, one main challenge for finance and procurement leaders is optimizing and controlling SaaS spend management. When there's always a new software-as-a-service solution, the process for budgeting for and purchasing this software becomes critical.


For small businesses, SaaS management could be as easy as a spreadsheet. Though as the company scales, so do your software needs, and so does tracking time and labor. There are other options, such as a SaaS tracking tool, or a platform to help you manage and negotiate your software stack.


To get started on tracking your business software, keep it simple. Get a breakdown of apps and services by department. One way to begin implementing this is to have each department decision-maker provide a simple list of the top 20 apps in their tech stack. This will start to give you visibility into your biggest line items, and gives you a way to keep runaway spending in check.


To accomplish true SaaS management and begin your process in saving money on software, having a centralized owner is important. Having a project owner for the stack from within Finance or IT team means that someone is monitoring the software database and acting as a source of truth.


Legal is the last, and sometimes longest, barrier to a deal in the software buying process. Paige recommends knowing who at your company (internal or outside counsel) will be reviewing these contracts. Legal can take the longest. Four to eight weeks, depending on the situation.


Setting financial thresholds that allow a director or VP to approve the purchase preserves bandwidth for bigger deals. This allows team members to move quicker once they identify the best software solution, and reduces the need to rely on one person or enduring bottlenecks.


There are many ways to pay for the current software products you need to run your business. Not all pricing models are built with price optimization in mind. For variable use apps or fast-growing companies, Paige recommends a consumption model, but with a caveat.


In a drawdown pricing model, the software contract is billed on a per-year basis on how much your team uses the product. For instance, a contract might allow for $100,000 of consumption from your end users over a 12-month period. In this model, the user is free to consume any amount over the course of the year, without incurring overage fees or surprise bills.


Choosing new software is no small feat. There's a lot to consider when deciding on what tools to invest money in. With the average SMB spending 10%-15% of annual revenue on IT expenses, making an informed and educated decision on which software to buy is incredibly important for your business and budget.


Whether you're looking to invest in a new tool or you're looking to replace a current product, here are 7 things to consider before buying software. Use these tips to help guide the software buying process so your team feels confident when making the final decision on what software to add to your tech stack.


When looking into products at the lower end of your budget, be wary of software that can't grow with you. Project what your business needs may be in five or 10 years, and see how the software costs will increase with an expanded number of users, processes, or products. You may find that the cheaper product becomes incredibly expensive compared to other options. Thinking ahead into the future when making a software decision will help your team choose a product that can be used long term.


You want to choose a software that your employees will be able to adopt quickly and easily. Choosing a highly complex model that takes a considerable amount of time to master will negatively affect adoption rates. Research potential software options tirelessly so you can make the most efficient and beneficial decision for your company and your team.


A great way to investigate a company's service and overall customer satisfaction is by reading customer reviews on sites like G2 and Capterra. These reviews will provide you insight into any common software issues, how the company responds to issues, and a high-level picture on strengths and weaknesses.


The best software companies are continually updating their product. When talking with software vendors, ask them to provide details on how often they push updates to their product and how those are communicated. It's also important to note if service is every restricted or limited due to product updates, since those could impact your business and operations.


Support can play a huge role in whether a software is a success or failure for your business. This is especially true if your IT team is small, the software is complex, and/or the software is being utilized by all employees. In these situations, you may need to lean on the software's support team for extra help.


The way data is collected, secured, stored, and shared is a crucial part of any software. Make sure to review the security page for any software you are considering purchasing. You may also want a compliance officer or lawyer to review security documents before signing any contracts. Compliance regulations depend on the product use case and your industry, but you may want to consider PCI, HIPAA, Section 508, GDPR, and WCAG.


The key to choosing the right software is taking the time to plan, prepare, and implement. Use this digital transformation checklist to guide you the next time you need to evaluate new software for a project. 041b061a72


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