Top ten reasons for changing software
...ten things I think about you
We recently came across a piece of research recently from consultants Deloitte Touche*, undertaken in the 1990s. The work looked at the selection criteria when first selecting an IT system ...and repeats the exercise for the same process second time around.
Most companies now find themselves replacing an incumbent IT system, rather than commissioning a brand new system from scratch (replacing manual procedures). The original work was carried out amongst management accountancy customers, but is believed to be more generally relevant in other business sectors.
The paper looked at the stated reasons for selecting an IT system, with a ranking according to their importance. The interesting part comes when people were asked the same questions the second time around when they came to replace that first system. The rankings were vastly different second time around – many of the key decision factors the first time around (for example price and ease of implementation) were seen as much less important second time around.
| 2nd time |
1st time |
Criteria |
| 1 | 8 | Support provided by the partner |
| 2 | 10 | Vendor's track record of success |
| 3 | 4 | Software's ability to fit the business |
| 4 | 7 | Growth potential of the software |
| 5 | 1 | Price of the software |
| 6 | 9 | Quality of documentation |
| 7 | 5 | Functionality of software |
| 8 | 3 | Ease of use |
| 9 | 2 | Ease of implementation of new system |
| 10 | 6 | Software works with existing hardware |
Factors given a much greater ranking the second time were quality of support, vendor’s track record of success and growth potential of the software. To caricature the change in emphasis, the first set of rankings reflected a harder-nosed ’bean-counting’ approach to decision making. Whilst the second time around there was a distinct shift towards the softer ‘people factors’, those things emerging from the corporate culture of the potential supplier.
Price is clearly always going to be important, but with a more measured second purchase, made with the experience of the first behind you, it slips from the top spot to the middle of the pack.
Another factor demoted right to the bottom of the list is integration with existing hardware. Obviously this is not even a risk factor with a modern Windows Server–Client PC (or thin client) infrastructure, but it suggests that anybody thinking of protecting their investment in older technology may be chasing diminishing returns.
Once you get beyond the capital costs of your main server, the costs of the remaining hardware requirements are likely to be less and less important, particularly when you take into account the established trend of falling costs and improving performance over time.
With the benefit of hindsight, organisations implementing a new IT system are taking a more measured approach with their decision making second time around, evaluating the full range of a supplier's offerings, but focusing less on price and more on delivery and future potential.
* Deloitte and Touche conducted a study of 1,500 companies, all of which had to replace systems purchased during the previous 24 months.
