Choosing an IT Solution

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By Melody L. Reyes

“Choosing an IT solution” is a management decision that has never been easy because it presents many challenges and issues. Lack of user input, incomplete and changing requirements and specifications, unclear objectives and lack of management support are just a few of the many problems.

These are some issues or the common mistakes which need to be avoided in choosing an IT solution:

Selection of comfort over growth 

More often than not, companies tend to consider the established skill set in the current IT processes which they feel comfortable working with rather than exploring other options.  In my experience, I have noted that it is always better to educate and train the group on new but established technology rather than to choose a product solely to fit the existing skills of a few. 

We should also consider the availability of resources in the market. This issue is familiar to organizations using legacy or proprietary systems. Management should be careful about outdated technologies to ensure that the chosen technology set will be viable and supported for many more years. Otherwise, it will prove to be a costly choice.

Fascination with promotional strategies

Sales and marketing representatives provide attractive and comprehensive marketing materials about their products and services and offer attractive promo offers. Sometimes, these marketing efforts help to form biased decisions in favor of the supplier who has the best approach even if the solution being offered is not totally relevant to the project.

In purchasing an IT solution, it is important for the buyer to look and scrutinize everything related to product quality. Thus, it is necessary to research, gather data and consult people from within the organization who are knowledgeable about the technology as well as the company offering the IT solution. There is a need for test demos, for checking out references, making comparisons and conducting proof of concept testing. 

Assumption on the price tag

Some people assume that if the IT solution is costly, it must be the best in the market. Based on my own experiences in selecting an IT solution, this is not necessarily true. There have been several occasions that we opted for the low cost product because of budget considerations but fortunately we have not regretted the decision to choose the cost leader.

 Price is not the only gauge of a quality product. If the IT solution lacks in functionality, then it can cost more than the price of the most expensive product in the selection line. It may also happen that utilization of a very expensive product could be very low if its functionalities and features are more than what is required.

The important thing is that the total cost of ownership should always be considered.

Consideration of subjective evidences

Proposals by suppliers and other external parties do not necessarily provide a comprehensive solution that is fully aligned with what the organization needs, nor does it provide a thorough evaluation or assessment of the product. But even if it denotes only a portion of the total requirement, the information gathered on its features and functionalities, including the company’s profile, can be of assistance in the evaluation process.           

The best approach is to have a complete outline of what is really needed to facilitate the selection process of an IT solution.

There are three basic areas in selecting a technology solution:

1. Architecture – There are three types of architectures available for implementing an IT Solution.

a. Stand-alone – a single computer contains the entire solution, it is useful for personal productivity applications with no requirement to access the information anywhere else.

b . Client-server – involves a server on which the main application and data is stored and client computers where special client application software is installed for accessing and processing information from the server.

c. Web-based – the solution is primarily installed on a server and is usable from any client computer with only a web browse – no special client application software is required to be installed. This solution is gradually becoming widely available for all types of requirements.

2. Construction – There are four options to choose from.

a. Standard Product – the product encapsulates a set of built-in features. The problem lies if features available are not good fit to the required processes and policies of the business.

b . Customized – several standard products have facilities to configure and customize features, requiring varying amount of expertise. There is need to consider the amount of customization required to achieve the required facilities.

c. Custom-built – has a high degree of flexibility and can be built to suit the exact requirements of the business. However, the cost and risks can be higher.

d. Open-source – has emerged as a new option for constructing IT solutions. Enterprise can use open source applications with low upfront investments, and with relevant technical skills, can customize the code to match their requirements.

3. Ownership – There are also three models.

a . Purchase (license) – the software products are most available in this model. Payment is made once, and the purchaser is given a license to use the software with certain restrictions based on number of users, computers, servers, etc.

b. Rental (application service provider) – a new ownership model is emerging as an alternative for some IT solutions. Enterprise can rent an application that is physically installed on the service provider’s computer and accessed by the purchaser via the internet. 

c . Pay-per use – this model of ownership is an extension of the Rental model, but instead of paying fixed recurring fee per user or per period (month or year), it allows the user to pay for every usage.

By keeping all these in mind, hopefully the firm can make the best and right choice in selecting the technology solution appropriate for its business needs. The bottom line is: Companies must all learn how to find the perfect fit for the unique functional and business requirements of their organization.


Published in the Philippine Star, July 1, 2008









(Melody L. Reyes is a Senior Manager for Information Technology of Manabat Sanagustin & Co., CPAs, a member firm of KPMG International, a Swiss Cooperative. This article is for general information only and is not intended to be, nor is it a substitute for, informed professional advice. While due care was exercised to ensure the quality of the information contained in this article, readers should carefully evaluate its accuracy, completeness and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances. For comments or inquiries, please email manila@kpmg.com.ph or mreyes@kpmg.com.)