John BeichmanRobert D. Obeiter, Ph.D.

 

The CIS Selection Process: Cutting Through the Maze of

Options Quickly

                                                               

Applied Energy Group, Inc.Applied Energy Group, Inc.Consulting, Technology and Outsourcing Solutions for the Energy Industry Consulting, Technology and Outsourcing Solutions for the Energy Industry

Assumption

Your Billing and CIS Don’t Work Anymore

FoxPro, or hardware or something key has been de-supported

Access really doesn’t scale

You have too much staff

Response times are bad

The market is changing What’s Your Reason?

Something Must Be Done

But You Have Limited Resources

&

You Can’t Spend 12 to 18 Months Selecting

Software

TOO BAD! This Stuff Takes

Time Go Slow to Go

Fast Anything Worth

Doing Is Worth Doing Well

Pick a Cliché!

Spend Your Time on the Right Things

Our Advice

Define your business drivers

Selecting and contracting for software is the least of your worries

I. Planning

II. Selection

Selection & Replacement Process

Define your business drivers Get people to agree Build a strong team Know why you are changing Know what you do now Know what you want to do/must

do going forward Know your options (buy, build,

outsource) Then you can look at software!

Keys to Successful Projects

People: The human and organizational aspects of projects

Process: Understanding your way of doing work

Technology: What’s out there and what will work for you!

It’s All About:

What flaws exist currently? What are the strengths &

weaknesses of the in house team? Are the build, buy, outsource

options understood? What are the concrete

measurable goals of the project?

Questions for the Stakeholders

Obsolete Technology Out of warranty Retired/Retiring key personnel

Market Customer growth Expanded services

Monthly billing Electricity, solid waste, gas Other

City Council/Political Pressure Regulatory pressure

You Must Know Why You Are Changing

“Amorphous” Desire to Improve Detailed and Precise Desire to

Improve Fear

You Must Know Why You Are Changing (II)

Develop An Economic Rationale

Know your current costs

Labor IT Cost per bill

Know your extrapolated costs

Models for expected project costs exist for a baseline projection

Cost Per: Bill rendered Payment processed Customer contact

Intangibles Improved Service

(How?) Happier Customers

(In what way?) Happier Employees

(Because?)

How Long Will This Take?

Project Startup Business Case Development Buy Build Outsource

Assessment Market Analysis (Consultants

& Vendors) Consultant Selection

Project Management & Administration

Project Management & Administration

ProjectSetup

ProjectSetup

BusinessCase

Development

BusinessCase

Development

Buy-BuildBusiness-ITAlignment

Buy-BuildBusiness-ITAlignment

MarketStudies:

CIS Vendors/Consultant

MarketStudies:

CIS Vendors/Consultant

SelectionConsultant

RFP

SelectionConsultant

RFP

SelectionProcess

SelectionProcess

ContractingContracting

ProjectPhase IIInitiation

ProjectPhase IIInitiation

Current CostsProjected CostsBusiness Drivers

& ContextImplementationRisk AnalysisState of the

IndustryInternal Risk

Analysis

Current CostsProjected CostsBusiness Drivers

& ContextImplementationRisk AnalysisState of the

IndustryInternal Risk

Analysis

LeadershipChoices

ExecutiveChampionSelection

Executive Goalsfor Effort Defined

ExecutiveEducation as

RequiredIntegration intoother Ongoing

Projects & Plans

LeadershipChoices

ExecutiveChampionSelection

Executive Goalsfor Effort Defined

ExecutiveEducation as

RequiredIntegration intoother Ongoing

Projects & Plans

The necessarydiscussion ofoptions: buy,

build,outsource, ASP

Model.The imperativediscussion on

who leads,whose budget,and how to getthe business

and IT workingas a team

The necessarydiscussion ofoptions: buy,

build,outsource, ASP

Model.The imperativediscussion on

who leads,whose budget,and how to getthe business

and IT workingas a team

Who is "outthere" in the

CIS applicationSpace?

Who are thepeople, if you

want help, whocan help you

understand themarketplace

Who is "outthere" in the

CIS applicationSpace?

Who are thepeople, if you

want help, whocan help you

understand themarketplace

How to gethelp. Major

softwaresystem

acquisition isnot usually a

corecompetency of

utilities.

How to gethelp. Major

softwaresystem

acquisition isnot usually a

corecompetency of

utilities.

Start with ourseed

requirementsand CISAware

Gather sitespecific

requirementsDevelop RFP

Run Pre-submissionConference

EvaluateProposals

Start with ourseed

requirementsand CISAware

Gather sitespecific

requirementsDevelop RFP

Run Pre-submissionConference

EvaluateProposals

Start withstandardcontract

checklist thatwe have

Develop sitespecificcontract

languageProtect thecustomerIncent the

vendor

Start withstandardcontract

checklist thatwe have

Develop sitespecificcontractlanguage

Protect thecustomerIncent the

vendor

CheckReferencesPerform Site

VisitsRecommend,

Report,Choose

CheckReferencesPerform Site

VisitsRecommend,

Report,Choose

Organize thelarger project

team (SelectionTeam +)

Prepare for theKickoff

InternallyHave the

kickoffInsure the

project teamand vendorparticipants

understand thegoals of the

project

Organize thelarger project

team (SelectionTeam +)

Prepare for theKickoff

InternallyHave the

kickoffInsure the

project teamand vendorparticipants

understand thegoals of the

project

Month 1 Month 2-3 Month 3-4 Month 4-5 Month 6 Month 7-10 Month 11-13 Month 11-13

CIS Selection and Replacement Project StepsCIS Selection and Replacement Project Steps

PlanningSelection

Selection & Replacement Process

Project Management & Administration

Project Management & Administration

Project SetupProject Setup

Functionality& Weighting

Functionality& Weighting

State of theArt Options

Develop RFP

State of theArt Options

Develop RFP

DistributionPre-

submissionConference

DistributionPre-

submissionConference

Receive,Review

Proposals

Receive,Review

Proposals

Site VisitsFinal Report

Site VisitsFinal Report

ContractingContracting

ProjectPhase IIInitiation

ProjectPhase IIInitiation

ReviewCISAware

FunctionalityDatabase with

Team

Interview ClientPersonnel

Whose AreasRelate to CIS

ReviewTechnical

Environment &Standards

PerformFunctionality

WeightingWorkshop

(FWW)

ReviewCISAware

FunctionalityDatabase with

Team

Interview ClientPersonnel

Whose AreasRelate to CIS

ReviewTechnical

Environment &Standards

PerformFunctionalityWeightingWorkshop

(FWW)

Kickoff SelectionEffort

Integrate NewTeam Members

(if any) andSelection

ConsultantTeam

PrepareInterviewSchedule

Set UpCISAware Tool

Kickoff SelectionEffort

Integrate NewTeam Members

(if any) andSelection

ConsultantTeam

PrepareInterviewSchedule

Set UpCISAware Tool

CustomizeReport on State

of the ArtTechnology &

Functionality forUtil ity andPresent atWorkingSession

Develop RFPDocumentBased on

OrganizationalStandards and

Results ofState of the Art

WorkingSessions

CustomizeReport on State

of the ArtTechnology &

Functionality forUtil ity andPresent atWorkingSession

Develop RFPDocumentBased on

OrganizationalStandards and

Results ofState of the Art

WorkingSessions

Share List ofVendors,

DistributionVenues

SetupCISAwareLogins for

Vendor

Setup,Moderate,

Handle WrittenQ&A of Pre-submissionConference

Share List ofVendors,

DistributionVenues

SetupCISAwareLogins for

Vendor

Setup,Moderate,

Handle WrittenQ&A of Pre-submissionConference

Perform FirstCut Review

Perform VendorReference

Checks

Move to ShortList

Perform FirstCut Review

Perform VendorReference

Checks

Move to ShortList

Organize SiteVisits

Go to Sites andSee Application

in Action

Prepare FinalEvaluation

Report

Organize SiteVisits

Go to Sites andSee Application

in Action

Prepare FinalEvaluation

Report

Start withstandardcontract

checklist thatwe have

Develop sitespecificcontract

language

Protect thecustomer

Incent thevendor

Start withstandardcontract

checklist thatwe have

Develop sitespecificcontract

language

Protect thecustomer

Incent thevendor

Organize thelarger project

team (SelectionTeam +)

Prepare for theKickoff

Internally

Have the kickoff

Insure theproject teamand vendorparticipants

understand thegoals of the

project

Organize thelarger project

team (SelectionTeam +)

Prepare for theKickoff

Internally

Have the kickoff

Insure theproject teamand vendorparticipants

understand thegoals of the

project

Month 71 Week

Month 7-84 Weeks

Month 8-94 Weeks

Month 92 Weeks

Month 9-104 Weeks

Month 10-115 Weeks

Month 11-15 Month 13-16

CIS Replacement Project StepsCIS Replacement Project Steps

Select FirstChoice

Select FirstChoice

BusinessRequirements

ContractingRequirements

PurchasingRequirements

TechnologyRequirements

Selection Process

RF

P R

eq

uir

em

en

ts

Pro

ject

Su

cce

ss F

act

ors

RFP Process

Vendors

Project Startup andProject TeamDevelopment

Good Product FitGood ProjectExperience

CISAware

Proposal Analysis, Demos, etc.

Pro

du

ct

PACKAGE

SELECTION

One Way To Save Time

Automate the functionality collection and matching process

Speed up the RFP checklist Don’t write a book that your

potential vendors have to respond to with a book you have to read and evaluate!

Pick a consultant with the tools to help

CISAwareTM

Comes with default CIS functionality

Allows you to organize and enter your company specific requirements

Web-based, it is filled in online over the net by your team and vendors

CISAwareTM

You set weighting and the importance of specific functionality

Default ranking and reports automates evaluation

Saves paper too!