Capital expenditure (CapEx) is the overall sum of money that organizations spend to acquire, maintain, or upgrade physical assets, such as property, equipment, and technology, used in their business operations. To streamline all the processes connected with CapEx, organizations leverage a BPM platform that often incorporates the core CapEx functionality or simply invest in standalone CapEx software. Regardless of the chosen scenario, businesses need an efficient CapEx solution to automate, optimize, and track all aspects of the entire CapEx life cycle, from planning to post-investment. This article spills out the 3 pro tips on how to choose a one-size-fits-all CapEx solution to enhance existing CapEx operations and optimize related workflows.
Tip #1 Elicit functional and non-functional requirements
Before embarking on the process of selecting CapEx management software, it is important to collect, analyze, and document both functional and non-functional requirements of the desired solution. To elicit functional characteristics, such as budget and asset management, forecasting, and analysis, talk to the business owners and prospective users of the solution, defining the needs and objectives of both groups. Then, communicate these needs to the vendor, making sure that the chosen software fully aligns with the vision of all stakeholders. When it comes to eliciting the right non-functional requirements, pay unwavering attention to service level agreements (SLAs), vendor terms and conditions, data security, compliance, usability, scalability, and more.
Tip #2 Select a more suitable deployment model
As a rule of thumb, CapEx management software can be deployed on-premises on the organization’s own servers and infrastructure or hosted in cloud-based systems. In the first case, the IT department of the company is responsible for managing the solution while the second scenario fully delegates this responsibility to the cloud service provider. Hosting a CapEx solution in your data centers is an optimal choice if you want to have complete control of the software, including data management, security, and compliance. However, this approach requires substantial upfront investment in infrastructure, its maintenance, and software licensing. Accessing the CapEx solution over the cloud is a more cost-efficient alternative, especially if a company requires flexible infrastructure that can scale up or down based on business requirements. At the same time, data management, security, and compliance present several challenges in this model.
Tip #3 Ask for a proof-of-concept
A proof-of-concept (POC) is the crucial process used to demonstrate the feasibility of the product, method, or idea. When selecting a BPM platform with CapEx-oriented features, conducting a POC is paramount. This process involves accessing and interacting with a software prototype in a controlled testing environment to check whether it perfectly meets the stipulated requirements and evaluate its functionality and features in real time. By leveraging the potential solution in practice, companies can collect user feedback and comprehensively assess whether the chosen CapEx system is a good fit for their processes, mitigating the risks of futile expenses.
Conclusion
Every company wants a long-lasting and sustainable CapEx solution that will operate flawlessly even in the most rigorous settings and under heavy workloads. However, with the proliferation of CapEx software vendors in the market, selecting the correct tool seems unfeasible for multiple companies. Follow the tips outlined in this article and facilitate the decision-making process of the best solution tailored to your demands. If you are still puzzled about how to handpick the perfect software, get in touch now, and we will help!