This is PART 4 of Making a Business Case for Technology Purchases for Non-Profits – PART 1 is here, PART 2 is here, Part 3 is here.
One of the biggest concerns many of our customers have had when they came to us for a social services software solution was overcoming their fear of making the wrong investment in new technology. It’s important that you assess the risks when you are making a case for buying new hardware or software or any technological system for your nonprofit organization.
By evaluating risk, you are showing you are aware of the concerns and are addressing what you’ll need to do to mitigate any issues before, during or after the implementation of technology.
What are some risks to consider when making a business case for new tech solutions?
- Inferior Product Quality – what if the software or hardware cannot do what was promised? Or what if the vendor guaranteed to complete the process at a certain time and at a certain budget – and then fails to meet those expectations?
- Low User Commitment – what if you bought the products and/or tech services and no one used it? What if your staff doesn’t want to or can’t understand your new solution and abandons it completely?
- Too Technical – as your staff adoption of new technology can show, what if the system is too hard to use or difficult to learn? What if it requires a larger IT department to manage it? What if it takes months or longer to customize or update the solution? What if costs and frustration skyrocket?
- It Costs Too Much – What happens if you do go over schedule or go over budget during implementation? What happens if you make a purchase and your economic situation changes and you’re stuck with a product you can’t afford? What if you spend all that money and the system cannot grow with you or adapt to your situation and you have to buy something new all over again?
There can be risks associated with anything your organization tries to do. And those risks compound when you start talking about serious money or resources. You simply can’t afford to make a mistake in the nonprofit world.
How to Overcome the Risks and Issues
There are ways to reduce the threat of problems that can come from any technology purchase.
First, it’s important to find a quality product – a server, or computer system, or productivity software – that has been proven in the industry. Throughout the history of technology, there have been fly-by-night vendors that have created products and threw them out into the market in “beta” (which basically means they’re testing it out on you… at your expense) and have disappeared into the ether.
Look for companies with a strong reputation, with a history of quality products and support, and that has been in business for while. Yes, that tablet PC is only $199 but it was made by a company in North Korea that has been in business for 10 months. An Apple iPad costs twice as much – but which manufacturers’ 2-year warranty will you trust more?
You’ll also want want to demo any product you are considering. Make sure you see the technology in action and not just view some salesperson’s PowerPoint presentation or read a brochure. Understand what their system can do, what it can do for you, and whether or not it is easy to use and/or customizable to what you need it to do.
Next, make sure your new technology choice is adaptable. Can it be customized? Can it be updated to grow (or shrink) with your organization? It can be risky to purchase something that truly won’t work in a few years because of new regulations, rules, or restrictions.
Another great way to mitigate risk is to find a manufacturer or vendor of technology that creates products or solutions specifically for your nonprofit. For example, many companies manufacture accounting software. But how many of these software vendors understand the world of human services agencies? Do they know how to allow for tracking various grants and fundraising transactions and accounts? Can their system allow for greater transparency, for internal and external audits, for accreditation, or for special payroll needs? Find a company that knows your needs and understands how to help you achieve your goals.
Finally, to cut back on your financial risk quotient, look for a tech company that can provide you with financial options. Many vendors provide a solution that is one size fits all when it comes to price. There is a single system and you pay one amount and there are no options. But good companies give you only what you need, allowing you to pick the modules, apps, or accessories that are right for your organization. They have multiple payment plans and delivery methods for their solutions (hosted software versus Software as a Service (Saas) for example.) They do not make you buy or lease items that you don’t want by doing a thorough needs analysis before even discussing price so they understand what your requirements are.
When you can lay out of these mitigation strategies that you have analyzed while you were determining risk, your case will be airtight. It means more work for you to check out all of these ideas when considering a new technology, but it could save you time, money, and big headaches down the road. Remove the chance of elevated risk with proper due diligence in the research phase and you’ll make your case to concerned stakeholders.
In the final segment of Making a Case for New Technology, we’ll look into Measuring the Results to help you make sure you can get your next tech purchase approved because you’ll have genuine facts, figures, and performance results to show.
A new white paper has been added to our content library on the Vertex Systems website. This white paper was created for social services agencies with vocational employment programs that need a quality commensurate wage payroll application.
