13 Crazy Expensive Software Products

Crazy-Expensive-SoftwareMany people mistakenly believe that computers are what make the world go ’round – that we can’t do anything without them, and if they went away tomorrow, the world would slip into a cultural black hole. In reality, computers don’t make the world go ’round. Software does. And sometimes that software gets quite expensive. As you’re about to see, programs can cost anywhere from thousands to hundreds of thousands depending on the scope and specificity of purpose. Whenever possible, we’ve tried to slap an exact number on the product for you. At the very least, you’ll get an estimate.

Unfortunately, when you’re dealing with enterprise-type software, it’s impossible to find a hard number on the web. Quotes often vary depending on the circumstances. Still, if you left those types of software programs out of a list like this, it wouldn’t be an accurate representation. Our goal: to show just how valuable these 13 Crazy Expensive Software Products are to the companies and the people who use them. Here goes!

Prescription for a Healthy IT Project (Post 6 of 6)

Happy-Customers-Happy-Company_25877As I note in my book, “Building a Winning Business,” good customer-vendor relationships require both parties to participate, communicate and share responsibility for a successful outcome. Are you a good customer? This might seem like an odd question. After all, isn’t it the vendor’s responsibility to make the relationship work? While a vendor must go the extra mile, the customer also has obligations in making vendor relationships effective. While it might sound trite, I honestly believe the same qualities apply to a good customer as to a good employee, friend or even a spouse: trust, mutual respect and appreciation, and sharing that shows that each is committed to the success of the partnership.

On a practical level, this translates into the following behaviors on the part of customers:

  • Clearly communicate expectations. Assumptions are not helpful. Customers who share their expectations openly and early are much happier with their project outcomes.
  • Provide clear direction and feedback to the project team to control scope.
  • Understand that changes to a project that modify the original base requirements often are necessary to provide the best solution.
  • Take the initiative in quickly removing roadblocks for those doing the work.
  • Share responsibility for success of delivery.
  • Work to diminish political boundaries.
  • Be actively engaged in the process all along the way.
  • Do not overreact to minor setbacks.
  • Communicate on a daily basis.
  • Pay on time.

Prescription for a Healthy IT Project (Post 5 of 6)

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Once you’ve established the basic expectations and defined who has responsibility for what, it’s time to clearly define what’s in and what’s out of the project.  In the world of Agile, this is choosing what to tackle in a project’s backlog.

With a high profile and highly political project like the federal health insurance website, it’s highly possible that the project terms were changed frequently to appease political forces. A mistake made was to draw a line in the sand around a specific date.  While project management methods have changed over time, the old adage is still true, “Time. Budget. Features. You get to choose two of the three.”  If the project was handled properly, changes – and their implications for the timeline and budget –would have been handled correctly.

It seems obvious that when project additions occur (and always they do), give and take must happen. If there are additions, the client needs to expect more time and/or budget.  If not, more features obviously translates into the need to let go of other aspects of the project to keep the bottom line from increasing.

Perhaps most important of all, is the establishment of sprints. Sprints keep projects moving forward smoothly.  Even small projects should have several sprints.

Finally, success is a two way street.  Not all the responsibility for making things work lies with the vendor.  In my last post in this series I will discuss the importance of being a good customer.

Prescription for a Healthy IT Project (Post 4 of 6)

Communicationn-bullhorn1If you have read my blog or my book Building a Winning Business, you probably already know that I’m a big believer in communication. Nowhere is this more critical than in the beginning of a new vendor engagement. New relationships, whether personal or professional, get off to the best start when the people involved communicate their expectations and listen to the expectations of others.

In the case of the new federal health insurance website, I wonder if the government agency clients were crystal clear about the launch deadline for the site. Conversely, did the vendor drill down to find out what “launch” meant to the client? Perhaps the vendor thought “soft launch” or “beta launch,” while the client meant “public launch to the entire country!” While we can’t discount the role of politics in the deadline pressure, both parties should have communicated expectations and realistic timelines from day one.

Among my other tips in this regard:

  • Define clear lines of responsibility to stop turf wars before they start. After clearly defining the role of the vendor, be sure to share this information with your staff.
  • Clearly state expectations to put everyone on the same page (see above!).
  • Choose a central point of contact for both the vendor and your company or agency.
  • Clearly state priorities when fleshing out functional requirements.
  • Communicate constantly.

Next time: how to keep your project moving forward.

Prescription for a Healthy IT Project (Post 3 of 6)

job-interviewIn my last two posts I’ve been using the problems with the newly launched federal health insurance website as the jumping off point for a broader discussion of how to engage and work with vendors who can meet your expectations. Just like the process of hiring employees, engaging an IT vendor should involve a rigorous interview process. Always take the time to review the firm’s past work and to meet the actual people who will be involved with your project. As I describe in my book, Building a Winning Business, it’s also wise to think about the following points during the interview:

  • Do they ask questions? To create a solution, they’ll need to understand the problem. Asking questions shows they care and that they’re prepared.
  • Do they seem too good to be true? For example, if you’re considering five firms for a project and four of the five have stated that your delivery date is unrealistic but one firm can, somehow, hit your deadline, it’s highly possible they just may be telling you what you want to hear to get your business. In this scenario, it’s also highly possible that they will disappoint you by missing the deadline once you’ve signed on the dotted line.
  • Do they pay attention to the details? In the sales process, you’re most likely going to see the best side of the firm. If they’re late or don’t follow through on small details in the bidding process, it won’t get better once you’ve engaged them.
  • Look for a fit on a cultural level. Similar to having employees who fit the culture of your company, look for a cultural fit with your outside provider.

The bottom line: hiring a vendor should be undertaken with the same level of preparation and scrutiny given to hiring a new employee. Ask tough questions and pay close attention to what is said – and left unsaid – by all vendors that you consider.

Next time: how to get your new vendor relationship off to the best start!