5 questions to ask before investing in new software

John O’Shanahan from LeanBPI reveals five questions SMEs should ask before investing in new software, from solving the right problem to integration, costs, staff buy-in and AI readiness.

Investing in new software is a big decision – am I getting value for money? Will it be easy for me to learn and use? Will my team be able to pick it up quickly?

These are all good questions to ask, but they’re just the starting point. The reality is that businesses across Ireland invest in new software every week, and the ones who get real, lasting value are the ones who dig a little deeper before they commit. While some software works brilliantly, other systems may never be used properly. Some even subtly disappear after a couple of months because staff have reverted to the spreadsheet or old system they were using before.

This is not necessarily because the software is bad. Often, it’s just the wrong solution to the wrong problem.

1. What problem are we actually trying to solve?

Often, businesses start with the software rather than the problem. Maybe you’ve spotted something at a trade show, or your accountant has recommended a package. My advice? Start with the problem that you’re actually trying to solve. What is taking too long? Where are mistakes happening? What tasks are repetitive and monotonous? Define the problem first and then look for the technology to help solve it.

2. Is the process right before we digitise it?

This is the most important question you can ask yourself when investing in new software. A poor process doesn’t improve just because it’s been digitised. If anything, the problems are simply embedded further.

Instead, eliminate what isn’t needed, then simplify and standardise where possible. Once that’s done, look at how digital tools can support it. You can then assess where AI could be used to further drive efficiency. It’s worth noting that good processes, digital systems and structured data provide a much stronger foundation for using AI.

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There are supports available to help Irish businesses do this, including Lean for Business and Digital for Business through Local Enterprise Offices, Enterprise Ireland supports, Mentorswork and the European Digital Innovation Hubs.

3. Will it work with what we already have?

Very few small businesses need one main system that does everything. You might have accounts in one system, CRM in another and separate systems for payroll, stock or job management. That can work very well, however, the important thing is whether these systems can coordinate with each other.

Ask about integrations and APIs. Can customer information move between systems? Can an order create an invoice?

Also ask a simple question: if we decide to leave, can we get our data out, and who owns that data?

These questions are much easier to ask before signing the contract than at a later date.

4. Where does this fit into our overall digital journey?

Try not to make software decisions in isolation.

Look at your overall picture. What software do you already have? Where are the gaps? Which systems are likely to stay? There is also a choice between generic software, industry-specific software and increasingly, low-code or AI-assisted solutions configured around your business.

For a micro business, a simple low-cost monthly subscription system may be all that is required. As the business grows, integration, reporting, security and scalability become more important.

5. What is the real cost and are we ready for the change?

The monthly subscription is never the full cost. There may be implementation, training, data migration and configuration costs. There is also the time it takes people to get comfortable with a new system, and the temporary drop in productivity which usually comes while new ways of working are established.

It is critical to get employee buy-in right from the beginning. A system can have lots of great features, but if your team only uses a few of them or finds the system too difficult to use, it may not be the right system for your business.

Before buying, speak to a similar business already using it. Ask what the implementation was really like, what problems they had and, if doing it again, what they would do differently.

Technology can make a huge difference to an SME, but software should be the outcome of understanding the business, not the starting point. Get the process right, understand the problem, and then choose the technology. Ultimately, software should serve the business, not define it.