Need Help Making a Decision on a New System’

Have you been charged with finding a silver bullet that will enable your company to quote, rate, issue, bill, manage, report and process claims via the Web? As part of this decision-making process, have you attended every trade show, networked with fellow searchers to get their opinions, had more vendor demonstrations than you care to say and still don’t have the answer? If so, STOP.

While selecting the best system has never been easy, you should be commended for doing your homework. Now, armed with a wealth of vendor information, it’s time to compare your options. However, before you make your purchasing decision, let’s first dispel some of the most common vendor myths that you’ve probably encountered during your search.

Myth One
Our system is perfect for your company

All vendors want to believe that their product is perfect, especially after all the months, possibly years, they have devoted to developing it. While in reality their product may be very good, unless it was specifically commissioned and designed for your company it will not be a perfect fit. Even in-house developed systems rarely conform perfectly within their own environment, so it is important to manage your expectations of a vendor-developed system.

Myth Two
Our system will meet all your needs

As much as we would like to believe that we can have everything we want with one system, the sad truth is that this is rarely, if ever, true. If you lift up the hood, so to speak, and look inside, you will discover that while the system may offer all the functionality or options you require, the reality is that it will probably not perform up to your standards in all areas. For instance, it may be strong in quote and rating but weak in issuance. Or it may have great canned reports but limited ad hoc reporting and correspondence features.

Myth Three
Our system is so flexible it can do anything

On the surface this seems like a positive feature but let’s assume that the system really is so flexible it can do anything. Where would the controls be? Do you really want a system in your company without controls? And if you add controls, are you then removing the flexibility that you just paid for?

While recognizing these myths will allow you to look at your vendors in a new light, you are still left with the task of choosing a system. To simplify this process, let’s discuss a few steps that will help you distinguish between vendors and make your final decision.

Step One
Select a vendor with a strong financial background

It should go without saying that the vendor you are about to enter a relationship with should have a strong track record of financial success. In today’s economy we have seen the entrance and exit of many software companies, and the last thing you want is to implement a new system and then in a few years have no company around to back it.

Step Two
Select a vendor with a reputation for superior service

Since you will need your vendor’s support to most efficiently implement and maintain your new system, it is imperative that you research your potential vendor’s reputation for service before committing to purchase. Be sure that their reputation is not only for service during implementation but for ongoing maintenance as well. Implementation, although it may seem never-ending, is relatively short when compared to the potential lifespan of a new system in your company.

Step Three
Select a system that meets 80 percent of your needs

As mentioned previously, since it will be nearly impossible to find the “perfect” system, opt for the 80/20 rule instead. Choose the system that meets 80 percent of your requirements and accept the fact that you will need to look elsewhere for the 20 percent.

The 20 percent could be internally developed, purchased from another vendor, or purchased from another vendor who has partnered with your original vendor. Partnering is a common practice in today’s market, as vendors realize they can’t be all things to all companies. Instead, they are focusing on their strengths and forming partnerships with other vendors who are leaders in those areas where they are lacking.

If you decide on the partner route, be sure to apply the same criteria to the vendor partner as if it was the vendor (i.e., sound financials, superior service, 80/20 rule, etc.). You may also want to consider a few additional questions: how well do their products work together, and who will provide the service – the original vendor or the partner vendor?

Although making your final purchase decision will never be simple, if you stay focused on the facts that can be verified, such as financial strength, service reputation, and product feature evaluation, you’ll be confident that your final purchasing decision is the best decision you can make on behalf of your company.

Teresa Douglas is the market manager, insurance for Docucorp (www.docucorp.com).