Eleven rules of choosing business management software: Rule 1

We recently put together a list of eleven "rules", sort of a guideline really, to help small and medium sized companies evaluate potential suppliers when they are looking to change their business management software.

We sometimes make references to the specific type of software we provide, dealer management systems, i.e. business software specifically designed for managing vehicle dealerships (auto, truck, agricultural and construction equipment, etc.). But the premises hold true for any type of business.

The rules cover both product and supplier issues, and was not intended as a disguised marketing piece to covertly extol our virtues :).  It's a list based on recommendations by dealership and manufacturer owners and managers, as well as on our own experience with best business practices.

So here is the first of our Eleven Rules of Choosing Business Management Software:

Rule 1: Make sure the new system can accompany your company’s growth.

Choosing a dealer management system is an investment that will be useful for many years. 

This investment includes not only the cost of software licenses and related services, but also the dealer’s efforts during the different stages of a successful implementation:

• Before: Documentation of current business processes as well as needs, initial configuration of the system, data migration from the old system. These tasks are performed together with the new DMS supplier.
• During: Training, final system configuration, and working with the supplier throughout the new system’s “go-live” stage.
• After: Constant interaction with the supplier in order to continuously improve business processes. Also, feature suggestions to supplier.

It is important to make sure the new software solution satisfies not only the dealer’s immediate needs, but that it is also capable of incorporating long term needs and adapting to the market’s evolution.

You should take into account the following when choosing your new system:

• The database must respond efficiently, quickly and securely to accommodate the normal data flow that is to be expected in any dealership. A small database (for example Microsoft Access®) is inappropriate; robust databases such as Microsoft SQL Server and Oracle, which were created for business use, are the right way to go. In addition, ask your supplier whether they “leverage the possibilities offered by the database engine, by storing data manipulation processes in the database to achieve optimal performance.” This will denote their experience with the database and more importantly: database performance will be greatly enhanced.

• The new software solution should be designed and developed for the mostly commonly used computing platform around the globe: Microsoft Windows. In addition to its inherent advantages, a Windows application ensures a faster learning curve for present and future employees.

• The new system should adapt to the dealer’s business processes, not the other way around. Though a process may exist that cannot be replicated exactly as the dealer would like, in a flexible and configurable system these will be minimal.

• The system should handle multiple company names, franchises, stores (points of sale, workshops, etc.) and depots, to anticipate future growth.

• All departments and stores should work in real-time, without the need for cumbersome end of day processes.

• The software should run on off-the-shelf hardware: servers, PCs and printers.

It is important to make sure the supplier offers periodic updates and upgrades. These versions should include new features, ideally developed based on customer needs as well as on technological advancements.

If the dealership is not able to assess these aspects on its own, they should request the help of their Manufacturer in order to perform a thorough evaluation. Manufacturers usually have staff that specializes in this.

Posts in this series:

• Rule 1: Make sure the new system can accompany your company’s growth
• Rule 2: Does the system stay up-to-date regarding fiscal compliance?
• Rule 3: Attend a demo
• Rule 4: The system should be flexible
• Rule 5: Training is essential
• Rule 6: Choose a supplier that provides more than just a system
• Rule 7: Ask how technical support is handled
• Rule 8: Be wary if the system is too simple
• Rule 9: Discounts can be pyrrhic victories

Tags: Autologica, DMS, ERP, SMB, SMBs, dealer management systems, auto dealer software, automotive, auto industry, automotive industry, auto dealer, auto dealers, car dealer, car dealers, motor vehicle dealer, motor vehicle dealers

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