Is investing in a system really worth it? Every business owner would come across this question and probably throw in another one for good measure: aren’t systems bound by the “garbage in, garbage out” rule? That is, what if one doesn’t have the right personnel to ensure that data in the system can be relied upon for business decisions? And what about the question: do I really know what to do with the information captured by the information system?

For one considering the acquisition of IT solutions for the first time, the concerns could prove overwhelming especially if it comes with a hefty tag price. Here are some tips that may help in making an informed and objective decision as far as value is concerned.

Is it really expensive? How much are competing products?

Often the obstacle in making a decision is not knowing whether a system proposal is the right price or not. Businessmen need to know that they are indeed getting the right price for the benefits that they are getting. The right value for money. A little research and some inquiries should be all that is necessary to come up with a comparative list of competing products and their prices. Be sure that the investment is within your budget, and also make sure that the system scope amply covers what you really need.

What is the scope of the product in terms of software, hardware and services?

When comparing investment costs among proponents, make sure you are comparing apple to apple, and not apple to orange as they say. If one proposal covers features that are not in the other and vice versa, try to get them to adjust so that you come up with comparable packages. Big companies create RFP’s (Request for Proposals) in painstaking detail, listing every feature and functionality that they need. Likewise it will also help to come up with a simplified format of your own, just making sure that features relevant and truly important to your business are well specified.

The scope may be clear enough for software and hardware inclusions, but services may be overlooked. Does a supplier clearly articulate what services are included in the package – particularly those involving implementation and after-sales support? Crucial to ask is how capable are they in providing the promised support? How does the first line of support kick in especially during system-down situations that need immediate response? How are system revisions, whether to address bugs or important new requirements addressed? Can all these be done within acceptable response times?

What tangible cost savings does the system provide?

Try to discern what these are. Conscientious and open-minded businessmen can come up with their own list which may be more comprehensive than what suppliers profess. For example how will the system create savings in inventory in terms of controlling carrying and operating costs, reduction of pilferages and spoilages, and efficiency of maintaining the right stock level for all product SKUs? Are there reductions of paper usage and shortening of processing times which enable more work to be accomplished by fewer staff?

What is the cost of time and quality?

What about peace of mind and a secured, confident attitude towards the business? An effective business IT solution is one that tightly integrates with business operations, providing business owners and managers greater control over the business. Using a system platform allows delegation and segregation of work along the business processes, achieving greater checks and balances. This means less time spent in the nitty-gritty and more in macro management and strategic initiatives. What about benefits in terms of improvement of quality along with strong brand image? Having a system often means more personal time and better quality of life. See if the system can really provide that opportunity.

Are you capable of expanding without the help of a system platform?

Growing businesses sometimes reach a roadblock when operations and administration can no longer cope effectively with amount of work needed to be done. Increasing the number of personnel to handle greater workloads brought about by more product lines, additional outlets, and increasing sales coverage can become both unwieldy and risky. Only the bravest or probably most reckless, can take the hard road. Or the smart. Having an enterprise system and using it as a platform to expand does not require rocket science, but merely knowledge of replication and cascading of operational templates. It’s still not easy, but then the risk and difficulty becomes much, much lower.

Can you compete on equal terms with other players in the industry?

How are the competitors in the industry conducting their businesses? Companies can grow really fast with the aid of the right IT solution. Lower prices, improved quality and/or service, better product availability, increasing number of outlets and sales areas may lead to competitors creeping into market share, and the reasons may no longer be traditional but rather strategic. If a growing number are aggressively automating then there is no choice but to level the playing field to remain competitive. Fast.

Considering the acquisition of the right IT solution requires one to go beyond the superficial questions in using a system for business. While both the investment as well as the work involved getting it up and running properly can be daunting, the reasons for pushing through are very compelling. The right technology partner who can help you expertly maneuver through challenges and pitfalls and attain objectives prior, during and long after the systems are up and running can help make it easier, and put success in your hands much sooner.