In an increasingly digitized world, software products have become an indelible part of business operations. With the multitude of options available in the market, choosing the right software product can get quite confusing. This 6-dimensional framework will help you navigate through this complex job and emerge with the right product for your organization
1️⃣ Functional / Business fit
Does the product meet your business requirements. A good way to gauge this is to list down your business requirements, classify them as Essential/Valued/Nice-to-Have in that order of importance and assess how are these requirements met by the product. Ideally, all your essential requirements should be met through standard product features. The valued and nice-to-have may need product customization. See to it that the product has user friendly intuitive user interface
2️⃣ Technical Fit
The product needs to be compatible with your existing technological landscape. You also need to assess whether the software can seamlessly integrate with existing and planned third-party services crucial for your business. It is important understand the scalability of the software (consider your expected business growth/volumes in the next 2-3 years).
3️⃣ Client Reference
Make sure that the product has good industry references. Ask for at least 2 references (organisations that are using the product) whom you can speak with. This will help you immensely in understanding the pros and cons of the product and the level of customer support you can expect for the product.
4️⃣ Security and Compliance
Assess the software's security features, especially if it involves sensitive data. Look for encryption, access controls, and compliance with industry standards. Ensure that the software complies with the relevant industry regulations and standards.
5️⃣ Company stability & Product roadmap
You want to partner with a company that is stable and on solid growth trajectory. Keep an eye out for negative news through secondary research on the founders/senior management team. Understand the product roadmap…which new features and capabilities are under development. Are there any acquisitions in the pipeline
6️⃣ Commercials
Understand the various commercial models, evaluate the total cost of ownership, including licensing, maintenance, and escalations. Evaluate the payment terms and milestones against your company’s cash flows. Before making a financial commitment, whenever possible, take advantage of a trial period to evaluate the software firsthand
This framework has helped me over the years to holistically evaluate software products for my clients and I hope you it will enable you to make a more informed decision while choosing a software product.
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