{"id":27203,"date":"2019-07-30T10:30:13","date_gmt":"2019-07-30T17:30:13","guid":{"rendered":"https:\/\/www.jamasoftware.com\/?p=26507"},"modified":"2023-01-12T16:51:31","modified_gmt":"2023-01-13T00:51:31","slug":"how-to-justify-a-company-software-purchase","status":"publish","type":"post","link":"https:\/\/www.jamasoftware.com\/legacy\/blog\/2019\/07\/30\/how-to-justify-a-company-software-purchase\/","title":{"rendered":"Building a Business Case \u2014 and Proving ROI \u2014 when Purchasing Software"},"content":{"rendered":"
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If you\u2019ve just successfully gone through the process of\u00a0<\/span>building a business case<\/span>\u00a0for a software platform, then you know it\u2019s more than just proving\u00a0<\/span>ROI<\/span>\u00a0\u2013\u00a0<\/span>purchasing software<\/span>\u00a0takes a lot of pre-planning and strategy. You\u2019re probably also familiar with the feeling of elation that comes after you\u2019ve received that official purchase approval.<\/span>\u00a0<\/span><\/p>\n
You also know that once the euphoria wears off, the real work of justifying your purchase begins. That\u2019s because achieving the ultimate value from a solution isn\u2019t always a feat that\u2019s realized within the first year of usage.<\/span>\u00a0<\/span><\/p>\n
Even the most affordable, desperately needed software will have to prove itself to your decision-makers and fellow employees \u2014 not just once, but many times when renewals come due.\u00a0<\/span>Building a business case\u00a0<\/span>for<\/span>\u00a0<\/span>purchasing software\u00a0<\/span>often requires that you keep \u201cselling\u201d the software to your superiors and colleagues, so they maintain a good perception of it and trust you with future decisions.<\/span>\u00a0<\/span><\/p>\n
How can you help justify\u00a0<\/span>purchasing software<\/span>?<\/span>\u00a0Here are five ways.<\/span><\/p>\n
There\u2019s an old saying, \u201cNobody ever got fired for buying IBM.\u201d Perhaps the modern equivalent is, \u201cNobody ever got fired for implementing a solution that did exactly what it was supposed to do.\u201d<\/span>\u00a0<\/span><\/p>\n
Before you began<\/span>\u00a0the process of<\/span>\u00a0evaluating\u00a0<\/span>and\u00a0<\/span>purchasing\u00a0<\/span>software<\/span>, you and your colleagues no doubt performed an internal needs analysis that identified the top priorities and anticipated areas of benefit for your new solution. You\u2019d be surprised at how often evaluation teams forget all about this analysis once they\u2019ve gone live.<\/span>\u00a0<\/span><\/p>\n
So,\u00a0<\/span>if you\u2019re\u00a0<\/span>building a business case\u00a0<\/span>for\u00a0<\/span>purchasing software<\/span>,\u00a0<\/span>take the time to recall the main things this solution was supposed to be doing for your organization (<\/span>Im<\/span>p<\/span>roving efficiency?\u00a0<\/span>Streamlining communication<\/span>?\u00a0<\/span>Reducing errors<\/span>?), and then measure how well it is actually doing these things.<\/span>\u00a0<\/span>You can justify\u00a0<\/span>purchasing software\u00a0<\/span>in many ways, but if you can tie the value of the solution directly to your company\u2019s internal needs, you\u2019re well on your way to demonstrating\u00a0<\/span>ROI<\/span>.\u00a0<\/span><\/p>\n
Don\u2019t I<\/span><\/b>gnore the <\/span><\/b>S<\/span><\/b>oft\u00a0<\/span><\/b>B<\/span><\/b>enefits<\/span><\/b>\u00a0<\/span><\/b>\u00a0<\/span><\/h2>\n
ROI\u00a0<\/span>is important, but it\u2019s not the only factor to be considered when\u00a0<\/span>building a business case<\/span>.\u00a0<\/span>Executives like to see that a $50,000 piece of software paid for itself within one year and continues to deliver savings of $10,000 per year. But don\u2019t overlook opportunities to report on all the \u201csofter\u201d ways the solution is improving life at your company.<\/span>\u00a0<\/span><\/p>\n
For example, if the software enabled you to streamline a process from five steps to two, you may not always be able to measure the exact time savings, tie that to someone\u2019s salary and come up with monthly or yearly cost savings. But anyone can appreciate shaving steps from a process.<\/span>\u00a0<\/span><\/p>\n
Of course, sometimes the benefits are even softer. An employee may tell you, for example, that the\u00a0<\/span>review\u00a0<\/span>p<\/span>rocess<\/span>\u00a0is now \u201cmuch easier, and even\u00a0<\/span>kind of<\/span>\u00a0fun.\u201d You can\u2019t say with certainty that the process is reducing turnover by X percent each year, resulting in hard-dollar savings. But it\u2019s intuitive that people will be less likely to leave jobs in which boring or cumbersome transactions are made as painless as possible.<\/span>\u00a0<\/span><\/p>\n
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