Buying EHS software is time-consuming, challenging, and risky. In addition to all the due diligence and information gathering you must do, be sure to also consider these three extra things.
1) Ownership structure of the vendor
Think of your EHS software investment as a long-term play.
Is the EHS software vendor you’re considering a private equity-owned company? If so, you should consider the business mandates of many private equity firms and how they operate.
Private equity (PE) ownership is often a precursor to an eventual sale, and a core business strategy may be to build an attractive “asset.” PE owners may be too focused on short-term profitability over long-term stability, and prioritizing cost-cutting to boost profits and create more attractive acquisition targets.
This creates risks for you as a customer.
Cost-cutting measures to improve profitability may result in reduced service quality and/or lower product standards. Resources allocated to customer support or after-sales services may be reduced to improve financial margins, potentially leading to a decline in customer service quality.
You may get a great initial deal from a PE-backed EHS software vendor as it looks to boost its perception of high growth and profitability to potential buyers. But when these companies are sold, new ownership may need to significantly raise renewal prices to make up for losses that resulted from previous highly discounted engagements. Today’s good deal may not be so great for a customer tomorrow.
If a PE firm aims to exit the investment, there may be uncertainty around the long-term stability of the owned company. An ownership change could result in service disruptions or product decline. Will new ownership stick to previous commitments? Will they continue to invest in innovation? Will they give EHS software the same priority as other solutions in their portfolio?
Such risks are more likely to be factors in a PE-owned EHS software vendor compared to one with more stable, long-term ownership.
2) Product capabilities and market momentum
When evaluating EHS software solutions, it’s easy to fall into the trap of looking through a narrow lens of pricing or simply addressing immediate pain. Consider whether the offering of your vendor is complete and comprehensive enough to grow with your ever-changing business and whether that vendor will still be around to support you in the long-term. These should be primary motivators when investing to protect your people and your business.
You may need help to assess which EHS software vendor could be the right fit for your organization.
Enter the Green Quadrant: EHS Software 2025 report from independent research firm Verdantix. Below is a preview of their current assessment of EHS software vendors.
Many organizations look to the Green Quadrant report to help them decide which EHS solution to choose. Most want to partner with vendors in the Leaders’ quadrant as well as those that have consistently ranked as a Leader throughout the years.
The momentum dimension, represented by the horizontal axis, shows the degree to which EHS software vendors have demonstrated proven customer success, and possess strong financial and organizational resources.
The capabilities dimension, represented by the vertical axis, measures a vendor’s breadth and depth of software functionality and assesses technical and functional strengths.
3) Long-term vision
Organizations often embark on an EHS software selection process as part of their digital transformation initiatives. They seek comprehensive platforms to address EHS needs and processes.
But, as mentioned earlier, many are driven to purchase EHS software to address immediate pain. For example, they must solve incident management or occupational health challenges.
The greatest benefit of an EHS platform lies in the whole being greater than the sum of its parts. There are many synergies between incident management, risk assessments, permit-to-work, chemical management, audits and inspections, regulatory compliance management, etc.
So, you should look at the bigger picture and consider both present and future EHS needs. A single, integrated EHS software solution that supports most key EHS processes, rather than just a few, encourages user adoption and eases onboarding – unlike multiple systems, each with its own user experience and database.
Businesses grow and change, and your software likewise should have the ability to adapt and evolve too. It should provide capabilities your organization needs and the ability to scale with it.
Sadly, there are too many cases of companies that invested in an EHS platform, only to rip and replace it after realizing they made the wrong choice. You need to get it right the first time.
Download your complimentary copy of the Verdantix Green Quadrant: EHS Software 2025 report to:
- Get a detailed fact-based comparison of the 21 most prominent EHS platforms
- Gain insight into the current state of the EHS software market
- Understand buyer preferences, trends, and EHS priority areas
- Benchmark the capabilities of EHS software applications
Click here to receive the report.
