While new software can provide a competitive edge, there are substantial risks for small businesses with limited budgets. Failed implementations can critically impact operations and profitability. Here are key strategies to help mitigate risks when investing in new software.
Conduct Extensive Requirements Gathering
- Form a cross-functional team for requirements gathering, including operations, IT, finance, and end-users.
- Complement stakeholder interviews with process mapping and usage data analysis to identify pain points.
- Prioritize must-have capabilities through weighted criteria scoring, not consensus, to prevent scope creep.
- Set expectations on what customizations may be required for optimal fit.
Thoroughly Evaluate Alternatives
- Issue detailed RFPs aligning to requirements. Score vendor responses objectively.
- Verify promised functionality through demos using real company data.
- Speak with references to learn about implementation challenges and hidden costs.
- Beware of over-reliance on user reviews that skew positive – seek balanced perspectives.
- Consider utilizing advanced evaluation tools like KLAiRE to help you compare alternatives specific to your needs.
Phase Implementations
- Rollout first to friendly user segments open to change to gain buy-in.
- Focus initial phase on deploying core modules only. Slowly expand scope over time.
- Build in quality assurance and user feedback loops between phases to identify issues early.
Allocate Adequate Time for Training
- Training needs depend on software complexity and employee skill levels. Budget 15-20% of total cost.
- Utilize train-the-trainer approaches to ingrain expertise internally.
- Schedule training in bite-sized sessions over time, not just at launch, to reinforce learnings.
Have a Backup Plan
- Model different rollout scenarios and recovery timeframes needed if issues arise.
- Negotiate access to legacy systems for several months post-implementation as needed.
- For critical apps, maintain legacy system in parallel as fail-safe option during transition period.
By taking proactive measures to mitigate risks, small businesses can ensure software investments deliver value vs. operational disruption. Following best practices around requirements, vendor selection, project planning and training helps safeguard against software investment regret and cost overruns.
