A good software decision can greatly improve your productivity, business intelligence, and overall operations management. However a bad choice can at best cause unnecessary headaches, double work and provide poor data, and at worst put you out of business. Therefore avoiding some common pitfalls can be a great way to ensure the future success of your organization.

A recent article on Businessbrief.com notes the top five IT buying mistakes made by businesses and we’ve adapted it below.

1. Not knowing what you need.

Do not approach an IT purchase with the attitude of, ‘seeing what’s available and picking something.’ Similar to purchasing a house or car, you should make a list of your must have and ‘nice to have’ requirements to compare to possible vendors and software systems.

2. Being in a hurry to choose a system.

When you’re in a hurry, you’re less likely to do the appropriate amount of research. Experts recommend looking at several vendors and software options before making a choice. A larger group of options will give you a better view of the features and benefits available to you.

3. Looking at unqualified vendors.

If you have a needs list it will help you avoid this particular mistake. Knowing what you want and can afford will help you sort through which vendors can provide what you need, and at the right price.

4. Being vague about budget.

It is vital that you know how much you can afford in order to make sure you are staying within the appropriate scope throughout the process. If you end up spending more – there should be a very good reason, as well as an obvious ROI.

5. Being vague about scope.

Again, this goes back to your list of requirements. When you receive a quote from a vendor make sure all of your requirements are included in the implementation outline. Be sure you are receiving all of the customizations, specific reports and interfaces, etc. that you decided upon. Having a vague scope is the number one reason companies spend more than they can afford, and/or end up with systems that don’t meet their needs.

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