Specifying and purchasing IT

1.1 Focus on your business aims. For example, improving customer service or moving into a new sector.


1.2 Use these aims to define what functionality the solution must have. 


• Look at your existing systems - both IT and manual.

• Ask employees what they would like to be able to do but find difficult or impossible.


1.3 Consider what existing systems the solution should be compatible with. 


• Do you need to install new software on to your existing computers?
• Must new equipment or services be compatible with parts of your IT system?
• Do you need to share data with existing applications?


1.4 Reduce costs and disruption by anticipating how future needs may change. 


• Ensure your IT system can accommodate your long-term plans.
• Build flexibility into your plans so you can adapt your IT system.

2.1 Estimate the volume of work the system will need to handle, both now and over its expected working life. For example:


• How much data you need to store now - and how this might grow in the future.

2.2 Establish who will be using the system. Considerations include:


• How many staff will need access?

• Will they need remote access?
• Does your IT system have any other users? For instance, suppliers or customers.

2.3 Consider when speed will be most crucial. This will help you determine where to prioritise spending.


• Real-time systems, like those used in customer-facing activities, often need to respond quickly.

• Will you have to deal with any peaks in demand? For example, will you be running large scale mailings?

• A key factor in performance is the speed of your internet connection. Keep this in mind if the connection will be shared, or you need to transfer large amounts of data.

2.4 One of the biggest factors affecting system performance can be ease of use.


• How computer-literate are your employees? What systems are they experienced with?

• Do they have a strong preference for a particular piece of software or equipment?

• Your staff may need training.


2.5 Reliability and security are of overriding importance for business-critical systems. Failures can cause huge disruption and even insolvency.


• It can be difficult or impossible to recover important records if they are lost.

• You may be legally required to ensure good security. For example, you must store and use all personal information in line with the Data Protection Act.

• Make key staff aware of your disaster recovery plan.


3.1 Even if you have a good knowledge of IT, it’s worth taking advice (see 7.1).


• The right supplier should have experience of helping businesses similar to yours. 

• They will be able to explain how you can apply technology in different ways.
• They may be an expert on the strengths and weaknesses of available technologies.
• By building a long-term relationship with a supplier, they will come to fully understand your business bringing improvements in efficiency and significant cost savings.

3.2 Take time to understand and question suppliers’ recommendations.


• It’s important you fully understand what they are proposing. The right supplier should be able to explain their solution in simple terms.
• Confirm the solution meets your needs and clarify all the costs (see 6).
• Don’t get bogged down in technical details. Establish what benefits the proposed solution will deliver.
• Ask why the recommended solution will be better than a cheaper alternative.

3.3 Wherever possible, opt for simplicity.


• Most companies can function using standard, off-the-shelf products and services.

• Try and use consistent hardware, software and services across the business.

4.1 Computers will usually be the workhorses in your business.



• Desktop and laptop computers can be used to perform similar tasks, but laptops may offer more flexibility.

• Mid-range models should be more than adequate for typical business tasks.

• Complex tasks such as graphic design may require more sophisticated hardware.


4.2 Your employees may be keen to use mobile devices at work.


• Smart phones and tablets provide near-instant access to information, from almost anywhere.

• They can keep your team in contact, particularly if they travel a lot for work.

• Look into mobile apps that work with your existing software and services.

• Think about incorporating mobile devices into any new system. If you don’t, your employees are liable to use their own.
• Keep costs down by operating a ‘bring your own device’ (BYOD) policy, allowing staff to use their own mobile devices for business purposes.

4.3 Most solutions can be built from standard software.


• Employees are more likely to be familiar with widely-used software.

• Where appropriate, look for software packages which can easily share data.

• Beware of purchasing specialist software. Ensure there is an established user base, and check references.

4.4 There may be advantages to using cloud computing services.

• Instead of installing software onto your system, you sign in to cloud services online.
• Most cloud services charge a monthly fee instead of a one-off cost.
• You can easily increase or decrease capacity - and they often include maintenance and support.
• As cloud services store data on servers outside your business, it’s important to choose a reputable provider.

4.5 Businesses with more than one computer should consider a network solution.

• A simple network is easy to set up.
• A network makes communication and sharing files easier.
• You can share your internet connection through a network.

5.1 Your solution may need installation.


• A trained installer can roll out consistent software quickly and easily.

• Setting up a network server requires significant technical knowledge.
• Installing cables, wireless access points and other equipment can be difficult. Your supplier should be able to do this efficiently.

5.2 Software may need customisation to ensure it best meets your needs.


• Initial customisation of some complex packages.

• Integrating new applications with existing software can also be complex.
• However, many cloud services - such as accounting services - are designed to be quick and easy to set up and use.

5.3 Employees often need training and support, particularly for new software.


• On-site training can be convenient and effective, though can come at a high cost.

• Software often includes access to a helpdesk, online or by phone. Check the costs and reputation.
• A good IT supplier should tailor a support package to fit your requirements ().

5.4 You may want a maintenance contract, either from your supplier or an independent maintenance company.


• Establish the quality of the service. For example, whether the engineers work to ISO 9000, how qualified they are, and what quality of parts they will use.

• For a critical system, look for a guarantee of rapid repair or replacement. The details should be described in a service level agreement (SLA).

6.1 Upfront costs generally include the price of hardware and software and additional costs for installation, configuration and training.



• A flexible lease spreads the cost of acquiring equipment, and may make upgrades easier and cheaper.

• Some software costs include an annual support or subscription charge. For example, anti-virus software updates.


6.2 Continuing costs will include any maintenance and support services.


• Cloud computing services usually charge a monthly fee. This means they are cheaper upfront, but overall costs are usually comparable to buying software outright.

• Cloud services often include support, maintenance and updates as standard.
• Don’t underestimate the ongoing costs for items like printers and servers.

6.3 Skimping in some areas is a false economy.


• Investment in training can pay dividends. The cost of errors by untrained employees can be high.

• An appropriate maintenance contract will minimise downtime.


6.4 Sooner or later you will need to upgrade or replace hardware and software.

• Many computers can be upgraded but it is often more cost-effective to replace them.
• Software publishers may release new versions offering better performance or features. They may stop supporting old versions of the software.
• Opting for cloud services usually means you don’t have to worry about upgrades. This is handled by the cloud provider.

7.1 Most businesses purchase IT from local suppliers or larger resellers.


• The quality of initial consultancy and advice varies, as does willingness to provide continuing support.

• A good local supplier should be willing to install and configure the system and to transfer data from your existing system.

• Some suppliers offer equipment they assemble themselves, at a lower cost than branded systems. Check that the dealer uses quality, industry-standard components and that you are satisfied by the warranty.


7.2 Other suppliers can be useful, particularly if you need little or no advice.


• Retailers often keep a wide range of products. Many offer advice, and maintenance and support contracts.

• Some manufacturers supply direct and build equipment to your specification.


7.3 If you decide to use one or more cloud services, you may purchase these directly from the cloud provider, or via your IT supplier.


• Some IT suppliers combine a selection of cloud services into a single package.
• This kind of ‘fully managed’ service can give you access to powerful technology, without the headache of hiring IT staff and running it yourself.

7.4 Look for a supplier who places a value on building a relationship with you.


• Where appropriate, ask for references from customers with similar needs to you.

8.1 Aim for a contract that makes the supplier responsible for ensuring that the system meets your needs.


• Specify in writing how you intend to use the system and ask for written confirmation the system is suitable.

• Buying an entire system from one supplier will ensure compatible components.


8.2 Be sure you are satisfied with warranties.


• Standard hardware warranties provide 12 months of cover against faulty parts or workmanship. However, you will usually be responsible for returning faulty items for repair or replacement. Extended, on-site warranties are available at additional cost.

• Software warranties are generally limited. Licences typically exclude liability for damage to your system and limit your recourse to the purchase price. 


8.3 Get a written agreement covering the standard of services.


• Agree specific standards of service, so you can hold your supplier accountable.

  For instance, the service should be available for 99.99% of the time over a rolling monthly period.

• Ensure that the basis on which you will be charged is spelt out.