The heart of product ecosystem changes is the product evaluation process. The work you do here will ensure that the product you select will maximize returns on your technology investment. We wrote this article to help you to break down the product evaluation process. However, before diving into product evaluations, it’s important to do your homework on the vendor to avoid unwanted surprises. See our articles on vendor selection: 5 things you need to ask yourself before selecting an FP&A vendor and How to choose the best FP&A vendor for your company.
#1) Check the product features against your list of necessary features.
This first step is the most obvious. Every business has its own budgeting and reporting nuances, making a one-size-fits-all solution next to impossible. You can use this checklist to prioritize budgeting and reporting features into need-to-haves and nice-to-haves and uncover the nuances where there may be coverage gaps in a specific solution. When you have completed your list, compare it with the vendor’s pricing information.
#2) Determining the technical skills required for development.
Seeing this is a new product, a sizable percentage of your staff will require training. Examine closely how much training will be included in your agreement and if it is realistic to the amount of time required for your staff to become proficient in the new skills. At a certain point, the time training staff will eat into your overhead. Knowing the total staff training time necessary will help you keep an eye on your bottom line and will be a good indicator to look for a solution that may offer fewer features but require less training.
#3) Discover how “extendable” the product is into other process areas.
As your business needs evolve over the next 3–4 years, you may need to extend your product to cover other process areas in your business. You may only need a system to manage your financial reporting and analysis now, but (in a few years) will you need a buildout for your operations team? Finding products that are “extendable” can help you avoid paying more for products that offer redundant features.
#4) Assess the product’s fit in the overall ecosystem.
Now is a good time to conduct an evaluation of your entire ecosystem of products to have a more complete picture of areas where change is needed. Identify where your current products are serving you well and where they are letting you down. Are there important features that have gone unused? It’s important to closely examine why these features have gone unused, as a switch to a new product won’t be enough to encourage adoption. Map out your data flows and where automation would boost your performance.
#5) Ask the vendor for a proof of concept from your requirements.
With all of the work you’ve done so far to determine your product needs, you are now in a good place to ask your prospective vendor for a proof of concept. Most vendors can provide this to you within two weeks, and this will be a good indicator for how thoroughly they will be able to respond to your needs as a client.
This article is contributed by Finance Transformation Specialist Ramya Krishnaganth, UVID Consulting.
