Maximizing Value: Best Practices for COTS Product Selection

Our recent blog, "Build vs. Buy vs. Outsource: Tips to Help You Make a Decision," briefly touched on when purchasing a Commercial Off-The-Shelf (COTS) product makes sense – for instance, to take advantage of an early market opportunity or to support functions like invoicing. Now, let's dive into best practices for selecting the right COTS product.

Understand Your Requirements Thoroughly  

A common pitfall in COTS selection is assuming a new tool will magically fix problems without a clear understanding of the underlying business process. A COTS product is a tool for your business process; if you don't fully grasp that process, no tool will help – it could even worsen things. Start by solidifying your understanding of your current business processes, then document any planned changes for the near to medium future. Don't forget to define and agree upon your non-functional requirements (NFRs).  These will include critical aspects like performance, security and data privacy. This comprehensive groundwork ensures you can clearly articulate all your requirements.

Prioritize and Categorize Requirements  

Once your requirements are documented, categorize them into Must-haves, Should-haves, and Could-haves. Involve a diverse range of stakeholders in this process; their input is crucial for defining true necessities and their importance. This categorization will then allow you to effectively compare potential products against your most critical features.

Budget for Implementation  

When budgeting for a COTS product, look beyond just licensing, implementation, and vendor training. Factor in potential internal costs, such as staff time or opportunity costs. Also, consider any infrastructure costs if installing on-premise, or hosting fees if cloud-based.

Plan for Ongoing Support  

All products require continuous maintenance and support throughout their lifecycle. Research what support is available from the vendor and its associated costs. Determine if you're willing and able to provide in-house support (at least for Level 1 or 2). If so, assess whether you have or can acquire the necessary technical talent to support it internally.

Product Selection and Customization  

It's rare to find a COTS product that perfectly meets every single requirement, especially if your business processes are complex – and that's perfectly fine. Focus on finding the product that offers the best match for your key requirements (Must-haves, Should-haves) and ability to meet NFRs. While customisations are an option to bridge gaps, be aware that they typically increase both initial implementation costs and long-term maintenance expenses.

These practices have been developed by Darryn and Lucille from their own experience of choosing, implementing and managing COTS products at a wide range of clients.  If you're thinking of or are using a COTS product in your business and want the best return on your investment, come and chat to us at hello@nextphaseconsultancy.com