b Support, Maintenance and Backup
For most companies, the words "my computer has crashed" or, worse, "the system has crashed" are likely to spark considerable anxiety and frustration. If your business doesn't employ a dedicated IT professional - and many businesses do not - then you will have to face the delay associated with
a call-out from your maintenance provider.

You will have already spent a considerable amount of money and time on your system, and probably rely on it very heavily. A system failure adds to this cost immediately. If data is lost as a result of this failure, the costs clearly begin to rise even further. Indeed, in certain situations, you could find yourself liable for damages for such loss, quite apart from the consequences that might follow as a result of losing key company documentation.

For instance, if you keep personal information about customers (and staff) then you will have obligations under the Data Protection Acts (See Section 4: Collecting Personal Information). Moreover, if you rely on your computer system to help you meet your obligations to customers then clearly a system failure may seriously disrupt your ability to do so.

For all of these reasons, it makes sense to ensure that you have adequate support and maintenance cover for both hardware and software. Most computers come with a one year warranty - which can be extended in many cases to three years. However, sending your hardware back to the manufacturer is likely to cause serious disruption to your business.

A maintenance provider who will call to your premises is the preferred solution for most businesses. Support contracts are normally renewed each year. This allows you considerable scope for dealing with any problems you may have encountered with the provider in the previous 12 months.

Given the considerable risks associated with permanent loss of data, whether in a fire or because of computer failure, you should ensure that you back up all essential files every day and store these in a secure location. For most businesses, this means on a site away from your main premises, or at least a secure site on the premises if this is feasible.

c Software Development and Agreements
It's a big step for an SME to commission a software developer to write software specifically for the business. For most small businesses, the costs of buying in a bespoke software solution will be significant. On the plus side, however, the licence agreement accompanying such software is normally individually negotiated. Therefore a business is in a better position to ensure its concerns are addressed in this type of agreement than it would have had it purchased off-the-shelf software.

Commissioning the Software
Before you commission a software developer to write specifically for your business, you might determine if an off-the-shelf solution is available. The exercise is useful because it may well be that a solution to your needs already exists, in which case you will not have to pay for its development. If the appropriate software has not been developed, then at least the search for it will have helped you to define exactly what you are looking for.

If you have conducted this initial search properly, you should be embarking on the search for a software developer with a clear description of your software needs. If these have been properly set out in the tender documentation, then it will increase your chances of a successful outcome. You should have all potential developers reply to your tender in detail, as this will constitute a part of your contract with them.

You should also be aware that most problems with software development arise when 'add-ons' are commissioned during the writing process. Very often, this is because it is only when individual line managers come into contact with the software developers that the full extent of the task becomes clear. It's understandable that an individual manager will want to maximise the benefits of the new software for his department, but when factored across a number of similar departments, this can lead to significant implications for cost and performance.

So before you begin your search at all, don't just assume that you - or your IT manager - know what your business needs. Consult within your business with all relevant individuals. Ask them to set out the ideal software solution for their side of the business, including what they predict they will need in the
future. Involving them at this stage will save you considerable time and expense in the long run. When you have chosen your software supplier, you need to be very clear about what you are commissioning. Ensure that your agreement is detailed, and includes:

• A description of what the software is designed to achieve
• The length of time it will take to deliver the software, including a specified period during which it will be tested on-site
• A description of what your responsibilities will be during the commissioning and testing phases
• The full cost of developing and delivering the software
• A clear warranty from the developer in relation to performance
• Support and maintenance

You should also ensure that you have been granted, at the very minimum, an exclusive licence in the software, to ensure that your competitors are not offered the same package once you have ironed out all the problems with it. The ideal solution, of course, is that your agreement should specify that you are buying the copyright in the software. You, and not the programmer you engaged, would then be the copyright holder with full rights to licence the software to other parties or re-program it.

A 'bespoke' software solution will need a 'bespoke' legal agreement. It is extremely short-sighted to invest in the former without committing the additional resources for the latter. You will have problems with the software - all businesses do - and it's important that your agreement has been drawn up
specifically for your business to ensure that these problems can be resolved in your favour.

Related Links

Learn more about selecting eBusiness software vendors

Read the Enterprise Ireland guide to creating an IT and eBusiness strategy