1. By: Hugh R. Alley August 22nd, 2007 Presenter: Maged Younan
Eeny, Meeny, Miny, Moe Software Selection; Its pit falls and how to avoid them
By: Hugh R. Alley
August 22nd, 2007
Presenter: Maged Younan

2. Contents Importance of doing the right decision Common pitfalls
Steps for taking the right decision:
Do not mix Criteria and functions
Classify criteria to: Gatepost and poker chip criteria
Limit the number of Poker chip criteria
Limit the weights of poker chip criteria
Conclusion and recommendations

3. Why is software selection an important decision?
High Investment
Consequences of buying an over or a Less Complex ERP
If you search on ERP on Google, how many results do you expect to get?
63 Million, 2 Million if you write Manufacturing ERP packages
One can do the wrong decision pretty easy

4. Common Pitfalls in Software selection
Jumping into comparison of different packages before determining the company needs and objective
Comparing packages in regards to functions and features only – check lists
Choosing the cheapest package that offers all the required modules
Alice was asking about the way, the cat answered where do you want to go? She said: I Do not know, then anyway will do

5. Software Selection Steps
Project Planning
Goals and Constraints
Documentation of current situation
Analyse and Document Business Processes
Needs assessment
Where is the problem, what do we need to improve
Vendor identification
Long List of vendors
Vendor Evaluation
Gap analysis, pricing, reference checks
Project planning and kickoff, where you define goals and constraints, assemble the project team, and conduct project kickoff.
Documentation of the current situation, where you document existing infrastructure and applications, and analyze and document business processes.
Needs assessment, where you decide where you are going, by identifying immediate savings opportunities, conducting brainstorming meeting, and prioritizing requirements.
Software vendor identification, where you identify a long list of candidates using simple determinants, evaluate candidates using prioritized requirements, initiate sales process with vendors, prepare a RFP, and solicit and evaluate responses.
Software evaluation, where you prepare demonstration scripts, conduct and score demonstrations, perform gap analysis, refine pricing, conduct site visits and reference checks, perform pre-implementation planning, and negotiate and execute contracts.

6. Vendors Evaluation Step I: Identify Criteria
Criteria is different than functions
Criteria may include:
Compatibility of software size with my company
Vendor Expertise in specific Industry
Ease of use
Market feedback
Flexibility and reports customization
Ability to Integrate with other packages
Package Price
All required Features and functions are present
Car example
Criteria are the decision factors
Functions are what the software does: Commission rates can be assigned by product

7. Step II: Classify Criteria
Gatepost Criteria – Non negotiable:
Budget
Integration ability with an existing software
All required features are available
Number of Gatepost
Criteria should be limited
[65 is the maximum –
12 is the most common]
Ability to track lots
Ability to calculate comissions
Ability to change warehouse locations easily
If any of these is not met, we simply forget about this package

8. Step II: Classify Criteria
Poker chip criteria – tradable:
Ease of use
Market feedback
service and support capability
Criteria Should be measurable:
Ease of use example:
How many times users need help
How many times they do the wrong decision
How many screens people have to navigate through
If an application performs only half of the desired functions (but all the necessary ones) and costs half as much, is that a good trade-off
Scale is continuous or stepped rather than binary

9. Step III: Reduce the number of Criteria
No More than 10 Poker Chip Criteria should be used
Too many criteria:
Same criterion measured more than once - Twice the effect
Unimportant criteria being measured giving a biased solution
Low ability to discriminate between alternatives
Too few criteria:
Usually miss some important factors

10. Step III: Reduce the number of Criteria
Test the criteria for being:
Relevant
Independent
Measurable
Reliable
Inexpensive
Back ground colour of the screen, mushroom colour interior of a car

11. Step IV: Weight the Poker Chip Criteria
Decision is more influenced by the criteria selection rather than the weights
Weights should be limited – 3 levels are enough
Very important – 2
Important – 1.5
Some what important - 1
Back ground colour of the screen, mushroom colour interior of a car

12. Step V: Use the selection matrix
Back ground colour of the screen, mushroom colour interior of a car

13. Step V: Use the selection matrix
Back ground colour of the screen, mushroom colour interior of a car

14. Conclusions and Benefits
Software selection is a very important process
Steps for taking the right decision:
Do not mix Criteria and functions
Classify criteria to: Gatepost and poker chip criteria
Limit the number of Poker chip criteria
Limit the weights of poker chip criteria
– higher buy in

15. Conclusions and Benefits
Decision is faster and more economic
Decision is probably better
Management is more confident in the decision
– higher buy in

16. Thank You