One of the biggest decisions you can make in the backend of your company is what kind of computer system you’re going to use and not just the hard where, but primarily what software will be used to run the business.  This could be a very specialized process to select such a system.

Too often I see companies that go about this like another purchasing decision for the company without giving this decision the special process that it should require.

What am I referring to?  That could be kind of going through a list, calling up particular suppliers that could have software/hardware that potentially meet the needs, and calling them in and having them make a proposal.  The problem is this is subject to a lot of interpretation in terms of what are the real needs of the company.  Another issue with this approach is that it’s a rather inefficient process.  It can be inefficient having to rehash a lot of the same stuff between the different suppliers.  In addition, it can be a lot less efficient on the backend trying to evaluate the opportunity.  It could turn into a subjective approach or an emotional one, rather than having more logic behind it.

So, what you want to do is kind of really go through what are the various functions you want the new system to do and how should the particular system operate?  Produce a particular request for proposal (RFP) and that can be used as the common guideline.

If you’ve never done an RFP before, consider getting some outside help to guide you in the process.  I did that when I was head of finance and operation for a toy company.  The person was very helpful.  I still did the RFP, but he gave some great guidance on how to put it together.  It ended up being a huge success as we got the computer system selected and installed by the next summer in time for upcoming busy season.

Jon Paul, MBA, CPA, CMC, CM&AA

President, Value Added Finance Resources
Bringing new insights on results and maximizing company value