Develop effective software requirements

Are you undertaking a business process improvement project or just planning to acquire new business software?

In business, software is a tool to automate certain business processes and to manage data. All new business software projects should be considered as business process improvement projects. You want to automate optimised processes, not old manual or inefficient processes. To reliably select the right software tools with the needed functions to meet your business needs it is essential to have effective software requirements.

Elkera helps small and medium enterprises (SMEs) to understand their business needs, improve their business processes and develop effective software requirements.  With Elkera’s assistance, you will be able to procure new software tools that deliver real business value. You will minimise project risks, maximise return on investment (ROI) and satisfy your system users.

This page describes why it is necessary to take an expert driven, structured approach to developing software requirements and why Elkera is the expert to guide you through that process.

Effective software requirements require expert analysis and planning

Elements of a successful software project

A successful software project solves real business problems in a cost effective way. It has clear objectives, it takes account of all stakeholder needs, it is aligned to optimised business processes, it has clear, prioritised requirements and it is based on a thorough business case. Your system users should really want to use the installed system.

Reality check – The risks of software project failure

Unfortunately, many organisations fail to achieve success with their software projects.

According to reports by major research organisations, only around 30% of software projects are rated as successful. Most fall short of expectations. At least 20% of software projects are outright failures (See evidence gathered by the Standish Group and summarised in an article by Jorge Domingues at ProjectSmart UK: The Curious Case of the CHAOS Report 2009). Those are shocking statistics.

Many SMEs and other enterprises are wasting large amounts of scarce financial and human capital because of poorly planned software projects. That waste is completely unnecessary.

A common source of failure – inadequate software requirements

If you read most literature on software requirements, you are likely to be confused. There are many different ways to express software requirements and every business analyst seems to have their own take on it. They will speak of business requirements, functional requirements, traditional requirements (“Shall” feature statements), epics, user stories, and use cases.

The problem is that most writers think of software requirements from the perspective of the types of projects on which they work. Most writers are involved in developing software requirements for projects developed in-house, either within a large enterprise or within a software development business. Software requirements should be tailored to the needs of each project and the way that teams will work on that project.

The confusing messaging about software requirements creates uncertainty among business managers about what is required for effective software requirements on their projects, particularly for software procurement projects. Without a clear direction, it is easy to follow the wrong path.

Most SMEs do not have internal software development teams and do not employ business analysts. Many SMEs must acquire software from suppliers offering either off-the-shelf systems, developed but customisable systems, or fully custom solutions.

Unfortunately, in a misguided attempt to save money, SME managers may ask non-expert, in-house personnel to assemble requirements for proposed software systems. In those cases, there is a high risk that requirements will not do the job that is required. It is likely that the requirements will be highly ambiguous and incomplete. Most likely they will mimic existing manual systems and ignore important stakeholder needs. Without accurate, effective requirements based on optimised business processes, there cannot be a credible business case.

Alternatively, SME managers may proceed with only the simplest description of what they have in mind. They may make incorrect assumptions about the type of software they want.

Without adequate software requirements, potential solution suppliers may be invited to help the business devise a solution to its poorly defined problems.

That is a disastrous approach to software procurement. Without clear requirements, potential suppliers are unlikely to understand your specific business needs. Generally, potential suppliers are not being remunerated to do the work to really find out your requirements. Solution vendors may do their best but a good outcome may be a matter of luck.

Further, it is not possible to accurately assess competing solution offers because you are not comparing apples with apples.

If software procurement proceeds without effective requirements, there is a high risk that the system will fail to accurately meet your user’s needs. It is unlikely to satisfy any reasonable business case. The product may be used for some time, annoying many of its users. Alternatively, it is quite possible that procurement will be abandoned or a procured product will be abandoned shortly after deployment. As stated earlier, outright failure is alarmingly common.

Effective software requirements planning for procurement projects

Most SME software projects will require procurement of software tools from external sources. Particularly where the expected solution will be based on an existing software product, software requirements for a procurement project are not the same as for an internal development project.

To support procurement, software requirements must enable you to invite and compare proposals from competing vendors. Where vendors already have a foundation product, the requirements don’t need to tell the vendor a lot of the detail for the end solution. Rather, effective software requirements for procurement should clearly define the business problems that you want to solve and the outcomes that you expect. For example, they should define the content of the reports that are needed but may be less specific about data entry interfaces.

An approach that focuses on problem definition enables solution vendors to devise and propose effective solutions to meet your needs based on the product they have already developed. You should be able to accurately compare competing solution proposals.

The analytical skills required to develop software requirements

SMEs who do not have in-house business analysis expertise need expert assistance to develop effective software requirements. The goal is not to simply automate processes that are currently performed manually. Software requirements for new software tools can be defined only after the business problems are fully understood, business processes are analysed and processes are optimised for the introduction of new automation tools. New software projects are business process improvement projects.

It is critical that all affected stakeholders are properly consulted in the process improvement work.

Only when a new way of working is defined, is it possible to define the requirements for new software tools.

A software requirements business analyst must have extensive experience, acquired over many years, to be able to effectively work through each step in the  business process improvement process to achieve a truly business focused outcome. The business analyst from central casting may not have the required expertise.

Elkera’s experienced business consultant

Elkera’s business consultant has more than 20 years of experience working with and developing software requirements for clients who need to procure software from external suppliers. Elkera has helped clients develop software requirements for procurement in small and large projects. That experience also includes managing software development projects to be delivered under procurement contracts. Elkera really understands business and software procurement from both sides of the transaction.

Elkera’s approach to software requirements for procurement projects

Elkera works with clients to understand their business, their specific business problems, and their goals. From that foundation the scope of the project can be determined, including the identity of all stakeholders.

Elkera works with all stakeholders to define the relevant business functions and processes and document the ‘as is’ state. Elkera then works with stakeholders to identify waste and forgone opportunities in the ‘as is’ state and determine the business process improvements, including opportunities for automation using software products. The ‘to be’ state is documented and benefits assessed for inclusion in a business case.

Elkera then works with stakeholders to elicit their software requirements and develop a software requirements specification to support procurement.

If required, Elkera will assist clients through the procurement process, including assessment of competing solution proposals.

Each project is tailored to the specific needs of each client with the goal being to produce the least amount of documentation that will meet the needs of the project.

With Elkera’s expert assistance, clients can expect to procure software products that will fully align with their business needs and deliver the maximum business value.

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How Elkera Can Help

Elkera will help you to understand your business needs, optimise business processes, define your software requirements and procure the right solution. Elkera carefully tailors it’s service to deliver just what your project demands. You can be confident that the benefits from Elkera’s expert assistance will amply justify the investment involved.

Elkera has more than 20 years of software project experience. We have planned and developed multiple complex software applications (not our current business) and worked extensively with clients to plan business change, define requirements and deliver successful business results. We understand the pitfalls involved in planning new software projects and we also understand the critical elements in project success.

Elkera’s consultant will guide you through all critical steps. Elkera will help you to clearly define the problems to be solved and your business goals, plan necessary change, develop a business case, identify and document requirements, undertake procurement, and manage a successful deployment.

No two organisations are the same and no two software projects are the same. Projects vary greatly in scale and complexity. Elkera will carefully tailor its solution approach to your specific needs.

Your investment in analysis and planning will minimise risks and maximise the benefits from your project.

The Benefits of Elkera’s Expert Planning Assistance

Elkera will help setup your project to minimise project risks, maximise the return on your investment and satisfy your users.
Elkera will deliver those benefits through these key measures:

  • Clear project goals

    You will have clear project goals that solve clearly defined business problems.

  • Business case

    Your project goals will be prioritised to deliver real business value so you can assess the level of investment that is justified to deliver those benefits.

  • Optimised business processes

    You will understand your business processes and know where change is required to maximise the benefits of new software. You will be able to plan that change.

  • Clear software requirements

    You will have clear software requirements that reflect your business goals and that will support all your procurement and solution development needs. You will be able to obtain reliable estimates from solution providers

These benefits add up to greatly reduced risk, improved return on investment and more satisfied system users, all driven by your investment in business analysis and change planning.

The following diagram may help visualise the difference between expert and non-expert planning.

For a modest initial investment in planning work, you will maximise your total return on investment.

A line graph schematic showing project costs with and without expert planning and expected ROI with and without expert planning.

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Need help?

If you need help to advocate the case for expert project planning assistance in your organisation, download our one page document:

A Pitch to Management to Engage an Expert Planning Consultant

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A Pitch to Management to Engage an Expert Planning Consultant

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