Choosing the right IT supplier is especially important for SMEs, says Mark Greatrex. 

For any company, the need to ensure a sound return on any IT investment is paramount.

For SMEs this is especially critical as budgets are typically tight: at the same time, the need for IT to drive operational efficiencies and customer service – in order to compete effectively with larger counterparts in ever more global markets – is stronger than ever.

Yet choosing the right IT solution is as much about engaging with the most suitable product or service provider as it is about choosing an appropriate technology. 

In many ways, the two are inextricably linked of course. So in determining the best overall solution and service package which will deliver the financial return and customer service benefits demanded, how should an end-user undertake the task of determining the what kind of company is likely to provide the best ‘fit’? 

The first, essential step is to look internally and clearly determine the business issue you are trying to resolve and what benefit you will derive from the investment in IT.

Additional training 

Buying IT for IT’s sake, the desire to keep up with the competition, or short term unhappiness with the current provider are not in themselves good enough reasons to go to the market, as there is no real business benefit to be had. 

Such problems should initially be addressed, for example, by getting additional training on your existing solution or by opening up better communication channels with your IT vendor.

The next step is to write down the business-critical issue to be solved. Again, if you can’t rationalise it, the chances are you should not be making that investment.

At the same time you must be clear and realistic on what you can afford and the budget you have available.

Talk to prospective suppliers about the business problem to be addressed and not what you think the solution should be.

At the same time, a responsible provider will not simply sell you what you think you want: rather, based on a joint analysis of your needs, they are just as likely to advise that you do not spend money on a ‘whizzy’ new technology if this is not the best way forward.

Personal recommendation 

In putting together a shortlist of potential providers, talk to trusted advisors, personal business contacts or those with whom you have a commercial relationship, such as suppliers, and take advantage of their experience.

In many ways this is no different from sourcing a domestic plumber. Personal recommendation is invariably more powerful than sticking a pin in the local Business Directory.

In differentiating between the short-listed providers and ensuring that the proposed solution precisely meets your needs, it is essential to determine at the outset who should represent your business in making an intelligent and informed decision.

As the ‘executive sponsor’, the business owner, managing director or general manager is likely to be involved, both at the outset and in the final stages of decision-making, in looking at the overall business requirement.

It is important, however, that a small team is put together – typically representing IT, finance and operations – to precisely define the objectives to be met and assess each proposition against strict purchasing criteria in meeting these goals.