I constantly hear stories from businesses about software that needs to be modified (or adapted or customised) before it will perform the functions it was purchased to perform. In addition to the direct cost of purchasing or licensing the software, businesses must allow for customisation costs (including conversion from your existing system) as well as the costs of training and annual maintenance.

When you are in a regulated industry not only must software perform its intended function, it must do so in a legally compliant way. Is your software vendor able to map the software processes to your relevant industry regulations and certify compliance? Does it perform all the required functions or just some?

If you choose a software "package" in which the software processes do not match your required processes or performs them in a  non-compliant manner, then your business is at risk.

If, for example, the software needs to calculate interest or classify income in a certain way, then satisfy yourself that the calculations are compliant. Failure to do so could affect either your customers or your shareholders or both.

Recent disclosures by companies such as Westpac and NAB indicate that this is not as simple as it seems.

Buying software that is never
installed, improperly implemented, or under-utilized because of non-compliant features could also be costly.