Tech Trap No. 4: The Research is Thorough

Editor’s Note: The following is the fourth in a ten-part series about “Technology Traps and Mishaps.” To read part three, click here. To read part five, click here.

Finally!  After months of discussions and deliberation, the decision has been made. You have the go-ahead to replace-or introduce-a new technology product that is critical to your company’s operation.  So where do you begin?

The best place to start is at the end.  That’s right, at the end.  And then move backward.

Most new tech buyers make the mistake of starting at the beginning and jumping right to the end. They decide on a type of product that they need, identify three or four products and then buy the one that looks the “best.”  Often, the best thing about the chosen product was the slick salesman, a jazzy presentation or very cool features.

Starting at the end means that you define where you want to be and move backward to exactly where you are right now.  Before considering any specific product or technology, your research should include these five steps:

1. Create a workable and realistic time frame. Starting at the end and working backward will not only help you create a realistic timeframe of deadlines and goals, but it will help you resist the temptation to rush out and fill that technology void. Before the “shopping” phase for new tech products begins, time should be allotted for evaluating needs and processes/procedures currently in place.  In general, the greater the investment, the more time should be allowed for research, selection and implementation.

Unrealistic time frames, particularly when it comes to installation of new tech products and user training, can lead to ineffective purchase decisions.  A general contractor looking to replace their project management software, for example, wants to go live January 1, and it is now mid-November. Depending on the size of the company, the number of jobs and other factors, this is probably an unrealistic goal. And if the product search is limited to only those vendors that can meet the deadline, this contractor could end up with a poorly matched product.

2. Identify major problems and current product deficiencies. The first phase of research should always begin with the current product or processes.  Problems that you are having now-i.e. the pain factor-will help you define exactly what you will need in a new technology product.

However, prepare to dig deep in identifying problem areas, so that these deficiencies are not present in the next investment.  An understanding of why your current product is inefficient will provide you with greater knowledge when shopping the second time around.  Inadequate job cost features of an entry-level accounting software, for example, cause much pain for a growing contractor.  A thorough evaluation reveals that the system lacks the capacity to handle multi-state and prevailing wage payrolls, AIA billings and change orders.

3. Identify valuable features that must be kept. When replacing an unproductive technology product, you certainly don’t want to “throw the baby out with the bathwater.”  That is, make sure that your new “state-of-the-art” investment is not missing those features or services which you value most.  You can’t assume that new programs will duplicate what you are now using.

Your company, for example, depends on a detailed billing format which comes standard with your old accounting software.  If this is a must-have feature of your new accounting application, you’ll want to make sure all products you are considering offer a similar format.

In addition to the specifics, don’t forget about the bigger picture.  Companies often make the mistake of switching to a new product only to find that their new feature-rich system is totally lacking in customer support… or the high-tech solution is too difficult to use… or the “integrated package” offers little depth in any area.

4. Identify areas where you might need to compromise. Okay, now that you have identified your list of painful problem areas along with your list of “must-keep” features, it’s time for a reality check.  The chances of finding one product that meets the criteria of your new “wish list” is probably very slim.

That said, it might be necessary to identify “deal breakers,” or those features/items that you absolutely cannot do without.  Coming up with this list will help you weed out the products that simply don’t make the cut.

An excavating contractor with a large fleet of vehicles, for example, decides that their next job costing system must include a module or features for scheduling maintenance and repairs.  That’s the deal-breaker.  Having a dispatch board, however, is not as critical.

5. Examine the products that meet your criteria. Armed with the knowledge of what you must have and what you must avoid, it is now far easier to create a short list of new tech options.  Finally, it is time to examine these select products closely.  Ask to see product demonstrations; talk to contractors using the applications; consult with industry experts; and do everything you need to do to narrow your search and come up with your “best-fit” product.

We can all agree that research is essential to new technology purchases.  So why not spend the time researching not just new products available, but also your own company needs and where you’d like to be.  Starting at the end and working backward is the road less traveled when it comes to research. Though it may take longer to get there, the journey will be well worth it-in terms of new tech products that perform more efficiently and more profitably for your company.

Construction Business Owner, October 2006