Evaluating a new system is always a huge challenge. SMEs / Startups do not have the luxury of time and resources to undertake a detailed system / vendor evaluations like large enterprises. On the other hand, large enterprises typically have New Technology Evaluation / Management teams which monitor development of new technologies / new solutions. These teams undertake a very elaborate system evaluation exercise involving Pre-RFP system demos, RFP issuance, RFP response evaluations and sometimes even detailed POCs for shortlisted vendors. But many times this exercise becomes too time consuming and evaluation very subjective.
Typically, SMEs tend to go for a system / vendor by their reputation known through formal / informal channels or even sales efforts of the vendors. Many times proper requirements are not documented, scope not defined and then these projects run into time and cost overruns consuming the bandwidth of the promoters / founders. As a result, particularly SMEs tend to be reluctant to adopt IT systems, which can improve productivity and throughput of their business processes.
SMEs and Startups need to adopt different approaches while selecting IT systems depending on the mission criticality / business value of the systems and Nature of Requirements (company specific / standard). Following info-graphic gives a quick overview on the approach enterprises can take while selecting new systems.
As detailed in the above diagram for:
Quadrant IV, High Mission Criticality / Business Value, Company Specific Requirements: company may opt for either custom developed system or low code platform or select a point / packaged application based on an elaborate system eval efforts.
Quadrant III, High Mission Criticality / Business Value, Standard Requirements: company may consider SaaS / Plug and Play applications however after evaluating the possible options available in the market.
For other 2 combinations, the company may go for SaaS / plug and play applications based on quick research and understanding of the available options in the market or based on peer recommendations.
In the next blog post, we will discuss the system evaluation approach / steps.