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by Ankit Kulkarni

7 Min Read | Sat, 07 Jan 2023

Wrong Software Selection Will Cause These 5 Things To Your Business

There is always an implication for doing things the wrong way.

One of the most important decisions made by any organization is the software selection process. Before selecting the software that will produce positive results for years to come, multiple parameters must be thoroughly examined. 

After months of meetings, research, and demos, you and your team have finally narrowed down the possibilities for your company's new software system to just a few options. All that remains is for you to make a decision and complete your purchase. Isn't this the easy part of the process? Not quite. We discovered that only 27% of the time when small business decision-makers were asked about their most recent software purchase, it met or exceeded expectations without making any compromises.

The business economy of today is analogous to an F1 racetrack, where the car with the greatest precision and speed wins. Is it possible, on the other hand, to manually pipe in such a competitive level of flawless strategic moves? No way.

To scale and grow, every business requires the assistance of software technology. However, choosing the wrong software can turn all of the business goals into a nightmare. Companies that do not choose the right software will miss out on the benefits of automation and digitization that software implementation provides.

So, let us examine all of the difficulties that a company may face as a result of settling for the wrong software.

To see the extent of the damage that a poor choice of software can do to an established company, you can also look at the case studies of Hershey's, Nike, and HP.

Time Wastage

The decision to purchase software takes time.

It requires a carefully thought-out selection process before being purchased and put into use. Untimely and frequent staff surveillance is necessary when the wrong or inappropriate software is chosen.

Time is wasted as a result, and business operations are delayed. Additionally, time is lost by the necessity of frequently communicating with the software vendor to resolve issues. As a result, you risk losing your valued and even devoted customers.

Your incorrect software type selection provides a great opportunity for your rivals to win over your customers.

Increase in Workload

When a company wishes to expand its operations and income, software installation is required.

But a poor selection procedure has the power to completely change the course of events. A committee that decides which software to buy and why exists in some large organizations.

The managers of the departments of operations, marketing, production, and finance make up this committee. Thus, the leaders' poor software selection disrupts the entire business process and jeopardizes stakeholder productivity. It also has an impact on daily operations, project timelines, and business responsibilities. 

For instance, implementing the incorrect CRM software would complicate the whole sales process, limit productivity, and put additional work on the sales staff. The cost of the product and service will also grow as a result of the increased effort.


  • Additional Add-on Fees

Every piece of implemented business software requires an upgrade due to the periodic changes in technology and business expansion.

Therefore, it is crucial to find out if the upgrades are functional or not from the software vendor at the time of software purchase.

Verify the range of available customizations and add-ons. Failure to make clear all of these results in additional costs for updates and changes.

  • Replacement Expenses

The company must bear an additional significant burden of replacement costs despite having already spent a sizeable sum of money to purchase, implement, and train its staff on new software.

Replacement costs are the expenses incurred to remove the incorrectly selected software and install a new one or switch back to the previously used software. Replacement costs also affect the organization's stakeholders.

In 2004, HP encountered a similar circumstance. More than $160 million in sales were lost by HP, and its reputation also took a significant hit. Even its clients were taken by rivals.

Loss of Team Spirit

The team spirit of an organization's human resources can easily be dampened by poorly designed software.

After the software was implemented, the team that once stood out with its results is now producing subpar results. As a result, the team becomes frustrated, and employee confidence and attitude deteriorate.

Failure, exhaustion, and frustration are all experienced by the team that spent time and money learning a new, poorly chosen piece of software.

Result of Less Revenue

  • Loss of Employment

The incorrect software selection causes business disruptions and has an impact on the job credentials of its employees. When a company's revenue is impacted by poor software selection, it considers reducing its human resource resources. As a result, a significant number of jobs have been lost.

  • Compromised Reputation

Software that is improperly implemented damages the organization's reputation in the public eye. When commitments are not met on time, services are not provided on time, and support is poorly managed, customers stop using the company. The brand promise is frequently broken, which harms the reputation of the company.

  • Prone to Penalties and Legal Action

Additionally, if your organization's EHS program (environmental, health, and safety program) depends on its operational software, even that could suffer from the consequences of a poor choice.

As a result, you'll have to pay higher insurance rates, violation notices, and penalties.

Businesses that want to improve their operations and revenue are increasingly interested in software as a service. To speed up and simplify its operations, the company needs software support, regardless of the size and nature of the industry. The road to software selection, however, is not an easy one, as was previously mentioned.

As a result, we have made the process of choosing software easier for you by letting you know about all the requirements that the software you choose should meet as well as all the disadvantages that a company may encounter as a result of making the wrong choice.

Major factors to consider

Therefore, you must double-check all the parameters listed below before making the final decision to purchase your business software.

Determine your company's requirements by asking the following questions: 

-What are your company's objectives for the coming fiscal year? 

-Are you progressing or stagnant? 

-What are the current problems faced? And what feature might be needed to solve this?

-What is the software's estimated budget? 

-When do you plan to implement the software?"

Make a list of other important information, such as: 

-How easy will it be for employees to use the software? 

-Is the software reasonably priced? 

-What kind of assistance is anticipated? 

-Which specific aspects of the current software are not ideal? 

-Is there additional functionality in the new software? 

-What business processes will be streamlined? 

-What are the various types of software? 

-Is the software cost-effective?

Do research, compare, and gather/ compile a list of:

-Software that exceeds your budget should be removed. 

-Software with new features should be removed. 

-Succinctly choose from the remaining options. 

-Sort the remaining software options by importance.

Try out the software options that have been shortlisted: 

-Yes, software companies offer a demo of their product before purchasing it. 

-Schedule a demo for each software option. 

-Keep track of how easy it is to contact customer service. 

-For the duration of the trial period, try out all of the demos. 

-Collect feedback from your employees as well.

Asking these questions will help you determine your best option's ROI. 

-Are the advantages equivalent to the cost incurred for the software? 

-Will the software be upgraded as the needs of the company change? 

-Has the software achieved its goals? 

-Are the workers comfortable using this product? 

-Is the customer service up to par? 

-Does the features in software aid in achieving business objectives?

The goal of every piece of business software that is currently on the market is to make business solutions more effective as a whole.

However, you must make sure that the business management software you pick for your company is the best option. It is a challenging task to choose software.

Don't follow your peer's lead by referring to or selecting what they do. Make a list of your needs instead. since one poor decision could have a long-term negative impact on the company's overall productivity and ability to function.

Failures in software projects do happen. And some have received a lot of media attention over time. It makes sense that potential clients are hesitant to start large projects with an unknowable return on investment. But you have a lot of control over whether or not these projects are successful.

Everything revolves around planning, readiness, fit, goal alignment, and maintaining some level of process control.


A wrong software selection can cause you plenty of problems, and to avoid them Zoftware  helps to select the perfect software for your business.

We assist you in defining your software needs, focusing your search using our comparison tool, and coming to a well-informed decision based on feedback from actual users.