Top 4 mistakes when choosing business software

By | February 8, 2012

The truth is that most businesspeople aren’t software experts. They’re also very busy people, and when choosing business software, they may or may not be up to date with new business systems and concepts. The result, inevitably, is that mistakes are made. Another problem is the tendency to think that getting business software just means “doing the same things with new software” and that can be a very expensive problem.

It’s important to be aware of the possibilities for real savings and productivity improvements. The most critical issue is that there’s a whole new class of business software which are much better enterprise software solutions coming on the market. The new software leaves the old systems for dead in terms of operational values and management options.

These are the major mistakes to avoid when choosing business software. You may recognize some of them as part of your own issues with getting new software:

1. Multiple administration systems: This is the major problem for business. These systems are killers of productivity. If you’ve ever attempted to extract and correlate data from several different systems and then make reports based on the combined information, you’ll know the problem. This is a multi-stage process, and it takes time, effort and resources. The multiple admin systems are now considered “worst practice” and are being phased out as fast as possible and replaced by the new ERP software. (ERP means Enterprise Resource Planning.) ERP software is an integrated system, which makes the multiple systems obsolete.

2. The wrong business software packages for the business: The truth is that every business requires its software to be customizable to its own needs. The big business software packages are designed to deal with every type of business up to and including major corporations, and are full of functions most businesses don’t really need. It’s like buying an aircraft carrier when you need a sedan car. These systems are extremely expensive, and simply don’t deliver productivity improvements. Some actually create problems and a lot more admin work fitting existing systems to their needs. Most importantly, they also can’t deliver any relief from the multi-system issues. They basically just provide yet another system, rather than integrating the business software efficiently.

3. Business management software problems: Much the same situation applies to business management software. It may be compatible with systems like MYOB and other platforms, but in most cases it’s still another system, and again, the multi system problem occurs.

4. Management access to information: Most systems provide static, dated information which can be seriously out of synchronization. The typical situation involves a lot of different operational issues- (For example – Accounts are dated yesterday, the stock control figures are from six months ago, and sales figures are delivered weekly.) These situations are unavoidable with multiple systems, and they’re extremely inefficient. Management has to spend time going looking for information, extract it from in-house systems, and then try to put it all together in a meaningful form for use.

The short answer to all these problems is ERP software. You can integrate your systems, reducing admin handling, free up resources, and provide real time, single stream access to information for management.

If you’re looking for business software, don’t even bother looking at the multi-systems options. Talk to an ERP software consultant, test drive the software, and you’ll never look back.

About the Guest Post Author: Tom Mallet is an Australian freelance writer and journalist. He writes extensively in Australia, Canada, Europe, and the US. He’s published more than 500 articles about various topic.