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IT System Buying Guide: Bespoke? Web? Suppliers? Costs? |
This article was written with small to medium sized UK businesses in mind but is also more widely applicable.
Do you really need one?
It's useful to continually bear in mind why you are buying an IT system. Here are a few popular reasons:
- To solve a particular problem. Project management, customer management, production of reports etc.
- To get a competitive advantage. Setting up systems is an important part of moving a business forward.
- To upgrade from Excel. Management of information often starts with the use of Excel and then maybe Access but if the information is used intensely and company wide dedicated, specially designed systems are often much better.
- To reduce dependency on staff and training costs. An IT system specially designed for a task will need far less training than a massive spreadsheet for example, the screens are foolproof and it's obvious what to do.
Usually it becomes fairly obvious that there is a better way of doing things, that some sort of IT system is needed. The need for an IT system should always be weighed up against the possibility of not getting one and just continuing with existing techniques whether they be Excel, pen and paper or something else. Just wanting an IT system is not enough, the necessity should be there. The advantages should be quantified bearing in mind e.g. time saved per day, this way the length of time it will take to pay for itself can be calculated. Remember that beyond this point it will be providing real savings for the business on a daily basis.
Bespoke or Packaged?
The next question is should you buy an bespoke (or custom) system or off-the-shelf / packaged software. If the only available packages are not specific enough to the problem i.e. over-complicated with many redundant features then bespoke software is the way to go. Custom / bespoke IT systems to e.g. replace a spreadsheet are good value these days as this technology is no longer cutting edge.
Web or Non-Web?
An IT system can be Web-based or non Web-based, i.e. standard software (a program like you find in Start > Programs).
Things to consider:
- Multi-user editing of information. Both Web-based and standard software applications allow multiple users to edit the data without corruption.
- Access from outside of the Office. Web-based systems are better for this, though it is possible to access in-house systems remotely.
- Non-Web is nicer to use. Usability is still better for standard software than Web applications, especially for data entry.
- Similar costs. There's not really much difference in costs between the two styles of system in terms of development / construction. Web sites have hosting costs which standard software does not. This is roughly 10gbp/mth for a small application, more like 300 for a larger one or one with more users more accurately. Non-Web software does have some installation costs and update costs but these tend to be much less. Server and workstation installation is typically simple and quick.
- Installation - both styles of system can be set up without anyone coming in to your office. Web-based systems are completely seperate from your office and on the Web, and non-Web systems can be set up by "remoting in" i.e. your supplier can access your computer remotely (with your permission and you being able to see everything they do) and set up the system (this is common and holds no security risk, you retain control).
Scope
Don't be too grandiose, aim for the simplest possible system first for the first version. Requirements change. Don't get caught in the trap of designing for too far into the future. Don't try and be make it too clever, or automatic, to start with. To get good value throw all your ideas at the developer and see what comes back as "easy". If the developer has a good feeling about it it probably means it will fit elegantly into the framework of the program and therefore be be good value and not over-complicate and therefore hinder future modifications.
The more you discuss with your developer, the better and cheaper your system will be.
Budget
Think of it more like going to the dentist, you don't judge just by price - these people will be poking about in your mouth with a drill. The same with an IT system, it's not like buying a sofa, your business will be relying on this to some extent. An elegantly coded piece of software built for simplicity with the correct architecture is what is needed. This way future changes will not cause the software to become a mess.
Develop a relationship with a software development company, you want as few people hacking about in the code as possible. Talk to your development company as much as possible, they will be able to fit in with your functional and budget requirements.
Finding a Supplier
Word of Mouth, Businesslink *, Google (search for e.g. "software development bristol and see the Local results, they also have reviews") are probably best, in that order. Yellow Pages is a bit pointless these days with Google about but may be worth a look. The company should be happy to talk and help in non-technical language and have done similar work previously. Being established (not too new) and providing references would also be good. They may even provide a free demo of an IT system so you can have a play with it. This demonstrates ability and is great for understanding what the offering is and what the options are.
Getting a friend or relative who is not a professional to attempt to build an IT system is not a great idea because they are:
- Not available in the daytime to help and answer questions etc. as they have a day job doing something else.
- Not professional and so are unlikely to provide as good a result and as good value as someone who is. If someone does something 8 hours a day every day they are bound to be better than someone who tinkers for a few hours at the weekend. Would you use an amateur dentist? The code they produce may well be too poor quality for another developer to work and therefore have to be scrapped.
Ongoing Costs
Hosting, maintenance and support contracts - what are they and how much? Hosting is relevant only to Web applications and has already been mentioned. Maintenance and support contracts include things like:
- Updates - to keep the software running for when / if a new version of Windows and any other platforms it relies on (e.g. Microsoft Excel or Word) is used.
- Support - help, in case you forget how to use a feature of the IT system for example or have a query. Maybe just email or include some phone time.
- Installation on new computers - additional users or re-installations. Extra users may incur additional costs but don't usually with custom software, this is usually just for off-the-shelf systems.
- Licencing - if a commercial database is used yearly fees will apply. They can be large. There is no reason not to use a free open source database these days for the majority of companies which avoids these costs (see seperate article).
- Bug fixes - if there are any
- Modifications are not usually included but minor ones may be and for a little extra monthly fee probably could be.
The above varies from company to company and can be negotiated.
Summary
Buying an IT system is not that difficult. Just take it step by step, starting with as small a system as possible for version one and take it from there, always evaluating how much it is helping your company compared to it's cost. It can be an excellent investment and a great way to move a business forward.
* Business Link is a UK Government-run organisation to help small-medium sized business with all aspects of running a business including finding local suppliers.
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09 April 2010
Paul Rigby works for Awgar Stone Ltd and has been advising on and producing IT systems for over 10 years.
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