Software can cost from a few dollars to hundreds of thousands of dollars. The more expensive kind is usually intended for larger companies and involves networking with many employees. The higher priced software may require changing the hardware, which consequently increases the cost even further.

Programs that cost more do not necessarily perform better or do tasks better than the least expensive. In fact, some of the high priced programs don’t perform very well for specific applications. One of the reasons is that they were primarily developed for another function and for other applications. Programming for additional applications was only added to help sell the product. Unfortunately, the developers were oriented toward the primary function and had little if any experience about the additional functions. For example, many developers of accounting software, marketing software, or manufacturing software do not completely understand the needs of purchasing professionals. They don’t understand the large benefits certain purchasing features would give the organization.

Purchasing management should get involved as soon as it is learned that their organization is considering new software. A good MIS department will ask the purchasing manager to provide a list of software needs or like-to-haves. To avoid regrets later, make sure you take the time to adequately prepare the list. Spell out why you need various features and in what way those features will reduce cost or provide information to minimize problems.

Follow up with the software engineers or appropriate manager to make sure your needs are recognized adequately. Make sure that company executives realize the importance of the features on your list.

Purchasing management should read the proposals and details from each of the software suppliers. An assigned buyer should be a key player in the selection of the source. It may be necessary to do some outside studying or take a course to understand the technical aspects of installing the software, but keep in mind you will have to live with the system for a long time once it is installed, especially if it is one of the high priced versions.