Software selection consulting: what it delivers, what it costs and when it pays off
Software selection consulting takes a company vendor-independently from its own use cases to a well-founded decision on ERP, CRM or DMS. How PASSION4IT bills, what drives the effort and which funding applies in Bavaria.
Software selection consulting takes a company from its own use cases to a well-founded decision on a system such as ERP, CRM or DMS, without earning anything from the software that is chosen. PASSION4IT offers this as Smart Software Selection and bills by effort in person-days, which we scope together in the first conversation. Book a meeting directly at passion4it.de/en/booking/.
This article is for managing directors and department heads in mid-sized companies facing a system decision who want to know whether outside help is worth it.
What you will take away from this article:
- What software selection consulting actually delivers, and what it does not
- What drives the cost and how PASSION4IT bills
- Which funding covers the consulting share and the later rollout in Bavaria
- How to tell independent consulting from a reseller
What does software selection consulting do?
It translates your work into use cases that can be tested, invites suitable vendors and makes sure every vendor shows what its software can do on exactly those cases. At the end there is a recommendation made by a jury from your own company, not by the consultant.
At PASSION4IT a script replaces the classic requirements specification. It describes processes from your daily work, and the vendors have to demonstrate live how their solution handles them. Three to five vendors take part in the casting, chosen from a wider longlist. More vendors make the process longer without improving the decision, because the jury can no longer assess them with full attention.
You receive the script, the assessment of each vendor against those cases, a reasoned recommendation and the basis for contract negotiation. The script stays useful afterwards, because it records the requirements for rollout and acceptance.
What does software selection consulting cost?
At PASSION4IT, Smart Software Selection is billed by effort in person-days; there is no fixed price for it. We scope the number of days together in the first conversation, so that you know what to expect before you commission us.
Three factors determine the effort: how many use cases go into the script, how many vendors are invited to the casting and how large the jury is. A selection for a supplier portal with few processes needs far fewer days than an ERP project that touches purchasing, warehouse, production and accounting.
The comparison that really matters is a different one. We put the entry price and the running costs of the following years from the vendor offers side by side, over five years in the ERP selection for Sport Greil. A system with a cheap entry and expensive operation becomes visible before signature rather than in the second annual invoice.
Is there funding for software selection consulting?
Yes, for the consulting share. It may qualify for the BAFA funding programme for business consulting. The assessment basis is capped at €3,500, in Bavaria the funding rate is 50 percent, so the grant is at most €1,750. PASSION4IT is registered with BAFA as a consulting company, consultant number 222542.
For rolling out the chosen software in Bavaria, the Digitalbonus is usually the better fit, with up to €7,500 in the standard variant and up to €30,000 in the Plus variant, each covering up to 50 percent of the costs. The guideline runs until 31 December 2027. In both cases the application must be filed before you commission the work.
When does software selection consulting pay off?
The longer a system stays and the more processes depend on it, the more a structured approach pays off. For ERP, CRM, SRM and DMS that is almost always the case; for a single application with two users it rarely is.
A company is ready for a selection when the processes the system should cover can be described, when there are people who will work with it later and have time for the jury, and when management has decided to invest. Without a process description, the processes come first. Without an investment decision, you end up with a comparison that never closes. For that preliminary question the Digital Check is the right entry point.
How long does a software selection take?
The same factors that drive the cost decide this, plus your jury’s calendar. In practice the jury’s availability is almost always the limiting factor, not the consultant’s work. That is why our offer includes the schedule, which is matched with the participants’ calendars at the start. For an ERP project, the article on how an ERP selection project works describes the individual steps.
How do I recognise independent software selection consulting?
By how it earns its money. PASSION4IT earns only the agreed fee from Smart Software Selection, neither licences of the assessed systems nor a referral commission. A systems house or reseller earns from the solution it sells or implements, and therefore brings a favourite into the selection. For the rollout, a systems house can still be the right partner afterwards.
| Option | Who decides | What the partner earns from | Cost of the selection |
|---|---|---|---|
| Selection directly with the vendor | you alone, based on the demo | its own software | usually no separate fee |
| Systems house or reseller | you, with the reseller’s recommendation | licences and implementation | often included in the project |
| Classic tender with requirements specification | you, after comparing offers | depends on the consultant | depends on the consultant |
| PASSION4IT Smart Software Selection | a jury from your company, along the script | only the agreed fee | by effort in person-days, scoped upfront, BAFA grant in Bavaria up to €1,750 |
Where has PASSION4IT selected software?
The ERP selection at Sport Greil and at Vertiko, the CRM selection at SK Verbundenergie AG and the supplier portal at BarthHaas, which we then also rolled out together. At SK Verbundenergie, PASSION4IT supported the selection up to the negotiation of the CRM licences. The client testimonials are under case studies.
Frequently asked questions (FAQ)
What does Smart Software Selection cost at PASSION4IT?
It is billed by effort in person-days. We scope it together in the first conversation; it depends on the number of use cases, the number of invited vendors and the size of the jury.
Do we need a requirements specification for the selection?
No. In Smart Software Selection the script replaces the requirements specification. PASSION4IT writes it together with the people who will later work with the system.
How many vendors should we look at?
Three to five in the casting, chosen from a wider longlist. Every additional presentation lowers the quality of the assessment.
What happens if no software fits?
Then that is a result. The script shows which use cases every vendor fails on, and from that follows whether you adapt the process, shorten the requirements or postpone the selection. A decision against all vendors is far cheaper than a rollout that is abandoned in its second year.
Does PASSION4IT also support the rollout?
Yes, if you want, from contract negotiation through IT project management to rollout, as with the BarthHaas supplier portal.