Why Finding The Right Software Is Critical To A Business' Success

Software is an essential part of the modern workplace. From payroll systems to automated marketing tools, employees across all levels of the company use software systems and data to guide their decisions and workflow.

While software adoption is nearly universal in enterprises and small businesses, it doesn’t make choosing a system any easier. Here are just a few reasons why choosing the right Software-as-a-Service (SaaS) vendors are so important for your business.

You need a software system that covers all the necessary tasks

Many SaaS vendors have a subscription-based business model, meaning customers pay flat monthly fees in order to access their services. For example, a human resources department might pay to automate their HRIS systems through existing tools, rather than developing their own systems in-house. While the HR team pays a fee, it still saves the company time and effort not having to invest in new tool development and system upkeep.

The challenge with outsourcing systems is that you may pay for systems that don’t have all of the features you need. Using human resource departments as an example, one company might find a system that covers payroll but not benefits administration. As a result, team members are left using three or four complex software systems each day, increasing the costs of business for the company. When an employee leaves, management needs to train the new hire on several software systems rather than one or two key tools.

By carefully considering their SaaS options, HR managers and other leaders within an organization can choose a few essential software tools, not several little ones that complete disjointed tasks.

SaaS makes up a significant part of your operating budget

While software spending varies by company size and budget, the software you choose likely makes up a significant amount of your operating finances. The 2019 Annual SaaS Trends Report reported that companies spend an average of $2,884 per employee on SaaS, and software-as-a-service accounts for 15% of total enterprise spending. Even if you aren’t spending close to the amount for each employee, your company likely deploys software tools for a variety of tasks related to data services and human resource needs.

Adding a few new and exciting tools to your operating process might not seem like a big deal, but these expenses can add up over time. If the tools aren’t used frequently and don’t deliver a concrete ROI, then they are directly cutting into your profits.

It takes time to onboard team members to new tools

While some employees might be chomping at the bit to use a new app, other team members will need a few weeks (to a few months) to better understand the new software. Companies will need to budget for an onboarding period where productivity drops as the new system is adopted.

For example, if a company decided to invest in data visualization to assist the marketing department in allocating its budget, those marketing team members would need to feel comfortable reviewing the analytics and evaluating the data source. The marketers would need to have a general idea of how data virtualization use cases to understand when the software system could be valuable for them. Without this know-how and training, the company would pay for a tool that no one would use.

If employees can’t easily learn about a new system, then they are unlikely to use it, leading to a failed adoption and high rates for software churn.

There are countless uses for software systems, from curating customer analytics to simplifying payroll. However, company stakeholders need to sort through their choices carefully to choose the best options that work for them and their employees.