Analyze this: a company-wide audit of your tech needs helps determine the ideal IT solution. (Information Technology).

A staggering 72% of businesses are unhappy with their IT installations. This is often because they haven't properly researched their own requirements before implementing a system, so they wind up with a software solution that doesn't fit. Not only does this mean that the project scope has to be widened, it can also disrupt business and affect morale. Choosing a new business IT solution is a very big decision for a company, but a little work at the beginning of the project could save you a lot of trouble at the end.

That is why AMR Research, an IT research company, strongly advises that companies investigate their needs thoroughly before deciding on a solution. On average, they say, every dollar spent on pre-analysis saves five during implementation.

A good pre-analysis of business needs sets a project on course. It identifies all avoidable risks, helps determine the right solution the first time, and gets it delivered on time and within budget.

Such success is always achieved in the same, logical way. Follow the steps below and you too can ensure that your solution meets your business needs:

1. Sponsor the project

A business software project is of strategic importance. The eventual solution must fit with the current and future direction of the business. The chief executive/general manager, therefore, should sponsor the project. Drive from the top of the organization will also help to create support for the project among employees. It is an essential foundation for success.

2. Employ an outside consultant

From the start, the selection process should focus on identifying the needs of your business. How the product functions should come second -- good systems will be adaptable to your needs.

Most project failures occur because companies simply choose a number of items from those options that are given to them rather than considering what their business needs are and adapting the software package to those needs. The inevitable result is the implementation of a software solution that doesn't support the business.

A good consultant should meet the following conditions:

* Puts your business before the technology;

* Involves you in the selection process;

* Offers a complete, unbiased documentation of the selection process;

* Understands best practice methodology and the tools of business modeling;

* Uses Unified Modeling Language so that all parties can understand the models;

* Understands your industry.

3. Get to know the business

You and your consultant need to understand every individual aspect of your business. General management and core functional managers (like inventory, production, finance and sales managers) should provide the overview of their needs. The IT department should work with the consultant to determine the feasibility of databases, operating systems and hardware. Seek the input of anyone else whose support is necessary for a successful implementation.

4. Identify business processes

Discussions with managers are key to map an overview of all business processes. The result will be a working document that will develop as you and your consultant learn more about the intricacies of your company's departments. By the time implementation occurs, this has to be as accurate as possible to avoid additional work later on.

5. Define the scope of the project

Prioritize your business processes so that you can identify which are within the scope of the project and which will have to wait. Set some measurable goals that will help you gauge the success of the implementation in the short term (for example, reduce inventory and accounts receivable by 25%, eliminate 100 hours of manual processes). Experience has shown that, being of a highly speculative nature, long-range return on investment studies offer less value.

6. Document your requirements

Taking expected future initiatives into consideration, you or your consultant can translate your real business processes into software requirements. The result should be a complete list of features required to support the processes within the project's scope. In addition, you should document the key product characteristics that you want, such as low maintenance or high scalability.

7. Identify potential solutions

Your consultant will map the list of required features onto the products he knows. He will then recommend a solution that matches the needs of your business. If the consultant is also an implementer, he should provide a preliminary budget and time frame. The budget should be detailed and easy to understand, and the time frame should break the implementation into a number of milestones.

A good implementer should have the following qualities:

* Has company stability (years in business, turnover, size of installed base);

* Has personnel with the right qualifications and experience available for your project;

* Wants to involve you in the implementation process;

* Uses a rigorous and documented implementation methodology (analysis, design, testing, deployment, training and ongoing support) that is appropriate for your size of company;

* Has as many local/regional/international offices as you have;

* Has a similar company culture to your own;

* Offers references in your industry sector and for similar size implementations.

8. Run meaningful product demonstrations

Based on your list of requirements, prepare a scorecard to help you compare each package's strengths and weaknesses. Demonstrations should simulate the way the business operates, with information flowing in a logical order. To make it easier for all participants to comprehend product capabilities, actual data should be used where possible. Ask as many questions as you need to. Beware of implementers who offer you an evaluation copy of the product to test on your own. Without good training this will not be a valuable exercise. If your consultant is not an implementer, they should recommend the best local implementers with experience in your industry. You can also seek recommendations directly from vendors.

9. Check references

Check the reliability of the most promising implementer by calling some of their customers. Verify that the implementer meets time and budget constraints. If they do not, the project team may lose focus and the implementation may never be completed. Three good references should be enough.

10. Make a decision

If you still have more than one solution left on your list, choose the one that is easiest to learn, use and maintain and has the implementer with the best references.

You should look for the following in a software package:

* Vendor profile. Check that the company behind the product has a strong financial position, targets companies of your size, covers your international locations and has a product strategy that is likely to cover your future needs.

* Underlying technology Some popular products have been around for years and appear to be a good choice. Closer inspection reveals that they are based on aging and limiting technologies. This may prevent the vendor from adding new functionality such as supply chain integration, customization, Internet-enabled reporting, support for wireless devices or remote access.

* Customer base. A small customer base may not provide enough revenue to support the longevity of the product. On the other hand, a large customer base means that others have tested the product before you, and eliminated many of the bugs. If, however, you value the competitive advantage that can come from a relatively new product, the size of customer base may not be as important.

* Stable code. Short listed vendors should have a reputation for clean, stable code.

* Good customization capabilities. Some products are easy to customize and some are not. Try to select one that meets most of your requirements off-the-shelf.

* Broad range of modules. Favour the products with a wide variety of modules to avoid having to replace the system when the company grows.

* Ease of use. Essential for the success of the software implementation and for keeping training costs low.

By following these easy steps, you can make sure that your software solution meets the needs of your business. Unless you have the specialist skills and tools that you need to perform this planning phase in-house, you should hire a business consultant to help you.

Karin Budhwani, CMA, ([e-mail]) is director of product services at Navision Canada.