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Julian GriffithsPrincipal Consultant

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The Process The process described here is recommended

when it is a significant project in terms of: budget the affect on the business

In many cases a simplified approach can be adopted.

Consider using a consultant for complex purchases.

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1. Specification Produce a system specification document to

be agreed internally before external distribution.

Outline your business strategy and vision. Consider likely future scenarios. Highlight your current systems weaknesses Determine the need for change and list key

requirements

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2. Prepare a Request for Information (RFI) An extension of your approved specification

document to be distributed to potential software solution providers to include:

Specifications as above Platform and database requirements Estimates for capacity & transaction volumes Proposed timescales and milestones Decision making process Budgets Response process

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RFI Document

This document will form the basis of your relationship with potential vendors. Once stage three starts you will have indicated

your interest to suppliers so it should contain the ‘rules of engagement’ in the response

process.

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3. Identify Potential Vendors Investigate industry specific software vendors. Find out which software your competition uses. Ask for advice from professional bodies. Visit exhibitions and conferences. Ask IT consultants. Search the Web and publications. Read white papers. Attend seminars and briefings.

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4. Distribute the RFI Limit the number of vendors to ~10. Enforce the rules of engagement and try to

avoid meetings with vendors until responses are reviewed.

Appoint a ‘gatekeeper’ to manage the potential barrage of calls.

Clarify the response process

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5. Evaluate the responses This is the vendors first and sometimes only

opportunity to impress you and make it to a shortlist.

The vendor should have put a reasonable amount of time into reviewing your RFI and responding to your issues with a relevant solution.

Ask the vendors to keep it to a reasonable length and send product literature separately.

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Evaluate the responses Review the company profile to ensure that

you are confident that the company are able to support your organisation.

Be alert to empty sales waffle. Confirm stability of small vendors. Ensure relevant references and case studies Do not accept ‘references available on

request’ as you have asked them to be included as part of your evaluation process.

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Evaluate the responses Ensure a full cost estimate is included with:

Initial software licence. Annual software licence. Annual maintenance. Consultancy (with detailed breakdown). Development. Customisation.

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6. Draw up a Short List for Demonstrations Try to limit to ~4 vendors. Meet with vendors before. demonstrations so

they can understand the company and its operations.

Produce an agenda. Control the demonstration. Ensure that it focuses on the key issues that

you want to address. Provide dummy sample data as appropriate.

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7. Product / Vendor Demonstrations Schedule enough time. Consider complexity

of software. Allow for questions and answers. Ensure that all decision makers for the

process are available for all presentations. Formalise the selection team from key

process owners and directors.

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Product / Vendor Demonstrations Do not delegate attendance to someone else

at presentations. Control the meeting to ensure that all items

are covered. A good salesperson will also ensure that any

issues raised are covered at the end of the meeting or in a follow up session.

Allow for a short follow up session before selecting preferred vendor if required.

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8. Take up References Ensure the references are in the same

industry with a similar number of users. Ensure the reference has been live long

enough to properly exercise the system. Obtain multiple contacts e.g.:

Senior/expert users. IT Manager. Your equivalent

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Take up References Prepare questions in advance & cover issues

that are important to you. Quality of project management and consultants. Was the project implemented on time? Was data migration successful and to what level

of detail. How have upgrades affected the system? Are support calls answered in good time? Call the references. Calls are usually open and

honest and a lot of information can be gleaned.

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9. Choose a preferred Vendor Consider everything. Initial proposal. Presentation. Follow up sessions. References. Involve all members of selection team. Be immune to personalities. Evaluate the

software and the company as a whole, not just the sales team.

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10. Arrange a follow up meeting Time should be spent with key process owners

in detailed workshop sessions to investigate installation, deployment & use processes.

Involve as appropriate: board members managers technical/administrators day to day users

Document as much as possible in sufficient detail.

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11. Consider wider implications Can your infrastructure support the new

software? Server, storage, backup and network capacity Will staff need training?

Is the software compatible with existing systems?

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12. Obtain a Final Proposal Your preferred vendor will now have a

detailed understanding and be prepared to present a final proposal to include:

Detailed software module and user requirements.

Consultancy. Customisation. Updated proposed project plan. Identified resources.

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13. Negotiation The vendor will expect a negotiation and will

have established their baseline. Be prepared to give something for discounts.

Press release. Acting as a reference site. Consider leasing.

Many leasing companies work with software vendors and offer good rates and sometimes no payment until going live.

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14. Implementation That’s another presentation