Buying software is a bit like buying a car. You need something that meets your needs, budget and functional requirements. You want reliability, business benefit and above all a sense of security. Indeed, like car salesmen, all too often in the past the smaller software vendors have promised a great deal but delivered a lot less than the customer believed they were going to get.

The construction industry has been plagued by software businesses that may have a very good product but due to their size and limited backing have few resources to offer support and/or training.

Not an exact science

When you buy a vehicle or piece of plant, you can evaluate through experience what the payback will entail. IT systems are not such an exact science. Usually you are improving processes or systems, not necessarily saving costs.

However, in a world where we are all increasingly "time-poor" - time is money and anything that saves time will inevitably be a good investment as long as you buy the right thing!

Therefore as a guide I would always ask these questions before buying any software which can contribute to the success or otherwise of a business:

- What is the size of the software supplier, in terms of resources/people, their customer base, their financial size and profitability?
- What is the pedigree and track record of the software provider?
- Can you speak to a number of other customers who have bought exactly the same software to use for a similar purpose as your own?
-  What are the future expansion possibilities for this software? Do they have a product development roadmap?
- Can the software vendor automatically keep you updated on technical and legislative developments and will this be part of the software?
- How well will they support your business and what support and maintenance can they offer?
- What training and consultancy do they provide?
 
The lesson being, do not buy the cheapest but buy the most appropriate for your needs. In the case of our questioner he can also contact the Construction Industry Computing Association at www.cica.org.uk for general advice. Alternatively, try the IT Construction Forum (formerly IT Best Practice) at www.itconstructionforum.org.uk.

Look to the future

One of the most common issues we often hear concerns the rate at which the IT seems to change or evolve. It is important to budget for upgrades and additional licenses when you are considering an IT purchase. This needs to be part of your formula for calculating ROI. After all if IT is effective it will help your business to grow and hence you will want more people to use it.

It is also important to remember that much IT spend can be set against tax for your business and therefore, it is not worth going cheap since it is amazing how quickly new systems become integrated into the fundamental running of the business.

It is a good idea to allocate someone in the business the task of keeping up to date with the latest upgrades and advancements. Even if you are operating as a sole trader, often trade media (like IT Showcase!) or your local accountants may well have a view on what is most suitable for you.

Look before you leap

Do not just buy the first package off the shelf, herein lies the route to frustration. To return to our motoring metaphor, you would not buy the first car that you came across - you would research a little bit first. The same is true of IT systems.

In terms of a formula for calculating your return on investment there is not an exact science since so many companies vary in size and needs. However, as a simple rule of thumb, look at the growth of the electronic interface between supplier and customer and how many (if any) now deal by telex! I'm afraid that soon investment in IT will be a necessity rather than an option.

Areas to consider on ROI

 Saving time on processes - automation may cut the time spent processing jobs, reports or analysis in half - which saves costs and means that staff can do more value added activities 
 Preventing cost and project over runs - software will make "actuals" much more visible to contract managers and financial teams, so over runs can be spotted quickly.
 Effective buying - having a database of historical prices on jobs makes a business a more effective buyer which will save money.
 Access to historical data - means less reinvention of the wheel and the ability to look at successful contracts and base future bids on that information.
 Reduce risk - islands of information such as Excel spreadsheets in the field or knowledge stored in the head of a contract manager can be captured with IT, so that if key individuals leave your organisation, that knowledge is not lost and the impact is reduced.