Vendor Selection Process

With the initial RFI under way, a detailed list of requirements can be built up, supported by the business case and ROI model. Although meeting all the main requirements is important, it should not be the deciding factor in vendor selection. Some vendors will be able to do everything, but superiority in implementation times, costs, software functionality and process restrictions may outweigh the value of some of the other requirements. Often a detailed requirements capture is designed to understand everything available but is then mistakenly used as a bible to which all vendors should adhere. This mistake may cause software featureand process bloat, meaning that gainig actual value will be difficult and the implementation will fail. Look at the key areas of the ROI, assess which parts of the software solution and business process add most value in relation to each vendor, then a best fit across all the variables can be found. The most balanced vendor for your business needs will rarely be the one with all the bells and whistles.

Key areas to address when reviewing a vendor as part of a RFI are:

• methodology support
• process enforcement
• whether an evaluation budget is required
• whether the software is functionally supported
• integration (financials, billing, HR, and so on)
• the vendor’s experience in the sector (IT, PSA, engineering, construction, and so on)
• the vendor’s core values, parent company, and so on
• the business case for the solution in general and for each vendor
• ROI and ROO projections for each vendor
• feature functionality: whether the vendor promotes ‘bells and whistles’ or demonstrates core strengths that will add long term value to the business
• strategy: how the vendor sees the future of their technology, and business process enforcement methodologies
• where the vendor’s solution comes from, how much time they have spent on it, and so on
• how the vendor’s customers are supported at every stage of a partnership
• culture: whether the vendor is customer focused, part of a sales organisation, part of a PLC
• whether the vendor can provide customer references relevant to your business
• track record: where the vendor’s strengths lie. their history of successful installations
• market position: whether they are market leaders, have an extensive product-set, whether PPM is a core part of their business
• partnership strategy: whether they treat the customer as a sale or more of a development partner working towards a best-of-breed solution
• focus and vision: where the vendor’s focus lies in relation to their products and their future
• value added after implementation: whether they will leave, or work with you to continuously improve and develop the solution for the business