Learn how to develop the right business model and software services strategy for a business

Today, the software industry is about renovation instead of innovation. The business is becoming a service business. As the industry grew, it focused on building proprietary apps that did not work together. Now, service providers must work within the new market constraints, being focused on client requirements and developing products that seamlessly work together.

The usage-model-driven analysis for developing software services strategy and business model could find the optimal market fit for the solutions. The critical inputs to the enterprise replica are customer needs, software usage model, the competition, and skillsets and existing partnerships. It is important to determine who the consumers of the end product will be and how they are going to use it. They could be ‘mobile’ workers accessing the app remotely such as a sales force. In this scenario, a SaaS or Software-as-a-Service route definitely makes sense and would have minimal or no impact at all on the users.

Users could be in-house ‘power users’ with huge amounts of data, plenty of I/O, and performance sensitive. An SaaS model is unlikely especially if network latency sensitivity is a concern. Another factor that should be considered is how the app will be actually used. It is necessary to determine if consumers are individuals or if they have to work collaboratively, share sessions or data perhaps, etc. It is also important to find out if real-time interactivity is a vital factor or otherwise. All these could help determine the corporation model and services strategy options.

An organization should also consider the technical usage characteristics of the application. Considerations like intensive data I/O, network latency sensitivity or tight integration with other apps make a move to SaaS unlikely. Determine if there are other end users who could use the program, perhaps in a different method if it is offered as a service. There are instances when new users and sales growth grow more obvious when one steps out of the box of what the framework is and does. There should also be some up-front planning on additional value-add business program services that could be offered with the process and data aggregation that occurs as a result of a hosted service prototype. This could ensure a company to maximize the client value and thus price the task.

Customer’s requests and needs should be evaluated. Determining if they ask for a different approach to use the program, historically early adopters, taking risks with new technology or new approaches or late adopters is vital for the kind of strategy to build. Keeping tabs of the competitors is another vital factor. One should be able to keep a close eye on the changes in models that the competitors are making. If they do make changes, it is necessary to determine what works and what does not.

A switch in software services strategy would often mean a change in the set of skills required of the owner and the company and/or the vendor partnerships needed. There is also the issue of capital and financial resources. Would a change in the business replica require investment in software product development, marketing or sales? Are there resources that could support this? Any change therefore should be planned and funded properly; otherwise it makes no sense despite the potential organization opportunity.

Some points to take into consideration when choosing the right vendor for custom software project

When it comes to choosing a custom software development company, the first thing that could come to mind is to Google it. For better optimization of results, it needs adding in one’s location to get fewer results. So, how does one choose the right software development firm for custom freeware project? It all depends on the size of the project that is going to be undertaken.

Projects may be small, medium, large or huge. An organization should bear in mind that not all service providers would be keen in taking tasks of all size. Some may be interested in colossal only, multi-year, multi-enterprise projects whereas some specialize only on specific types of projects such as enterprise systems integration or mobile media apps.

The right software app could efficiently run a business and enable more time to focus on one’s business. Custom package is designed around the organization and does not need to waste time with all the hassles of buying an out-of-the-box solution that falls short of company expectations. Choosing the right vendor is the first step in the critical path of developing customized applications. Below are some points to choose the right software vendor for customization requirements.

1. Having the right experience. It is not only years of industry experience but an experience within that kind of program that will be developed as well. A service provider should be competent in understanding customer requirements and needs and then offering insight to translate them to a workable solution for the organization.

2. Knowing the vendor’s reputation. Gauging the development firm’s reputation is one of the trickiest tasks. Simply doing a quick search on the web will not provide the information needed to make the right decision. It is necessary to go through the company site, check the clientele and accomplishments and give importance of client reviews and feedbacks. The easiest way would be to ask at least three client references on similar tasks done.

3. A good portfolio of work. All portfolios vary. A vendor’s portfolio would reveal a lot about the firm’s skills in designing, developing and how complex projects they have worked on before. Vendors that one want to work with would have a huge range of sample work spread among a lot of industries and enable one to get an understanding of what one would receive if choosing a certain provider.

4. Consider the cost effectiveness of the vendor. It is another important factor in choosing the best software firm. It is necessary to measure cost effectiveness of the services of the company and as to what they could provide.

5. Timeline of the project. Projects could take months or even years to complete. The time span depends greatly on how fast the firm could develop, test and deliver the package. An effective service provider should work with the client the way the latter wants. Software Development methodologies should also be taken into consideration. Most providers have ideal methods in place and define the flexibility that they could offer the clientele.

The top five mistakes that a business organization should avoid when choosing an ERP software

Deploying an ERP or Enterprise Resource Planning system is a costly proposition, not only in terms of licensing fees and maintenance but also in terms of dedicated time and resources. And yet, most often, business organizations are dazzled by the promise of the vendor, that is to deploy the framework and the business would instantly run smoother and boost profits. However, this is not always the case. That is why it is very important for any organization planning to integrate the software to determine the top five mistakes that should be avoided.

The following are the mistakes to be avoided when choosing an Enterprise Resource Planning framework.

1. Not knowing what the company truly needs in the software. For any organization, it is paramount to take the time to understand what it truly needs before plunging ahead. To start with, it should determine whether it requires a fully integrated package or best-of-breed freeware. Often, this would depend on the problems one is trying to solve or the chances one is trying to capture and the structure and size of the firm as well. This kind of package would enable streamlining the processes and achieve enhanced productivity at a lower cost and lesser resources.

2. Not selecting the most qualified ERP vendor. When searching for an ERP package, choosing the right vendor could make a difference between a successful implementation and ending up with a system that falls short on meeting business requirements. One of the most common mistakes in choosing a vendor is choosing one who does not know the client business. Settling for a partner with in-depth understanding of the industry could help achieve a more rapid deployment, more cost-effective and more efficient. Service providers who are not in synchronization with where one’s industry is heading should be avoided.

3. Failure to recognize the uniqueness of the business. Every industry is unique and lack of industry specialized capacities within the software is a common cause for failure of ERP implementation. An organization should refrain from selecting a program that limits the firm’s capabilities and growth. It should enhance the enterprise and not hinder it. Moreover, it should have specialized capabilities necessary for addressing all company needs. By opting for a solution that is specialized for one’s industry, one is able to acquire a specific targeted solution to meet unique enterprise requirements.

4. Not giving the software implementation the attention it requires. A common issue during ERP implementation is the lack of a committed project manager on the customer’s end. Majority of successful implementations happen when the client’s project manager dedicates eighty to ninety percent of their time for implementing the project. Lack of support and commitment from the top is another area where organizations fall short. A robust commitment from the top would flow through the firm to make implementing the new package a success.

5. Not investing in the enterprise resource planning software for the long term. A company should be realistic about perceptions of cost and expectations when selecting a solution. While hard dollars spent are vital, the key is choosing the right package and the right vendor who would provide an effective and fast implementation, high ROI and low TCO after implementing the process.