In the 12 years that Real Story Group has been advising enterprise technology selection teams, I've seen customers evolve their approaches to acquiring new software -- mostly for the better.
In general, customers today have become more savvy, as well as more open to experimentation. Greater attention to enterprise architecture (EA) and user experience (UX) tradeoffs in the buying process has also led to better decision-making.
Nevertheless, many perennial truths about software selection endure. At a time when digital capabilities have become an important competitive differentiator, enterprises seeking to up their digital game need to pay close attention to finding the right fit when investigating new software.
Here are six (sometimes inconvenient) truths that can make you a smarter buyer. At the end of each one, I suggest a short lesson for your team to take away.
1. Software marketplaces are as opaque as ever Technology buyers have become more sophisticated and have better access to peer networks and advice than ever before. But in fast-changing marketplaces, enterprise buyers still report a lack of transparent, unbiased information about specific technologies and vendors -- as well as insufficient depth. Want to read cursory reviews or simplistic quadrants featuring the largest vendors? Sure, they're available. But what about deeper architectural critiques and contextual evaluations? Not as common.
The rise of cloud-based solutions has to some extent turned opacity into a feature, not a bug. As a buyer, you may not even want to know how a cloud-based service works, just that it addresses an immediate need. For one-dimensional applications, this makes sense: Why waste time investigating closely? For more enterprise-critical applications, you'll want to do the same diligence as you would with on-premises products. Remember, in the cloud, you are still selecting software; you're just not managing it.
Vendors, too, regularly push boundaries and market themselves to broader use-cases than their technology can handle. You can't blame them. But by the same token, this means that you have more choices than ever, and for important projects, you don't want to rush your decision-making or pursue vendor-of-the-month hype. Having a vendor map or two doesn't hurt.
Lesson: Reach out to trusted advisers to help you navigate.
2. Significant regional and national differences endure As software marketplaces mature, you begin to see common global trends and products that span geographic boundaries. Some processes are universal; an invoice is still in invoice in Argentina as well as Australia.
Yet, we find that regional differences still matter. Countries like Germany and Japan are resolute in their support for local technology vendors. In Japan, user interfaces often need to feature horizontal scrolling over vertical scrolling -- not an easy change to make if a platform wasn't built that way. Moreover, even mega-vendors like Oracle will distribute resources quite differently in different countries.
Meanwhile, elevated concerns about data location and privacy in the wake of the NSA revelations have only heightened the appeal of local providers.
Lesson:Look beyond brand names and remain open to local suppliers in your market.
3. Interdisciplinary selection teams work best For important technology decisions, stakeholders can span across HR, legal, marketing and sales, finance, and more. So you want to involve relevant groups in the process. Sometimes business teams hand over responsibility for software selection to IT groups on the grounds that business leaders do not have sufficient time nor expertise. This is a mistake: The wrong tool will eat up much more time and money than a committed presence in the selection process.
And, of course, IT should never, ever pick business technology on their own.
Conversely, we sometimes witness selection teams trying to work around their internal IT resources because they don't like the direction IT is heading, or they simply don't get along. This is almost always a mistake. Even with SaaS products, you will need IT's help for things like data integration.
Lesson:Build a broad selection team that can account for diverse enterprise interests and validate the results with peers.
4. Usability is relative Everybody wants tools to be "easy to use," but few people can describe what that really means. Beyond basic human factors -- like reducing clicks and pop-up windows, or avoiding horizontal scrolling (except maybe in Japan!) -- you can't make a lot of blanket usability judgments.
The rise of UX and user-centered design principles can help here. UX guru Steve Krug offers a pithy definition of usability: fitness to purpose. Usability therefore becomes dependent on the tasks and personalities involved. What seems too complex to one person can prove richly functional to someone else whose tasks are more complicated.
Although nearly everyone looks to Google as the paragon of simplicity, enterprise software vendors in some segments have headed in the opposite direction, amping up power-user interfaces. This stems from the fact that enterprise technology selection teams are dominated by savvy, feature-driven specialists rather than workaday end-users or real customers.
Lesson:Task analysis is your friend -- you'll need to dig to find out what "easy" and "simple" mean to your customers and colleagues.
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