Business Process Management - Choosing The Right Supplier
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The document provides a comprehensive guide for evaluating and selecting the right supplier, emphasizing best practices and essential considerations throughout the process. It covers the formation of an evaluation team, criteria for assessing vendors, documentation of current systems, and the creation of Requests for Information and Proposals. The guide also outlines steps for vendor presentations, evaluations, and final decision-making, stressing the importance of functionality and alignment with organizational needs.
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Business Process Management - Choosing The Right Supplier
- 1. Choosing the Right Supplier A Guide for Evaluating difficult choices
- 2. Introduction Since our founding in 1992 the BP Group and its Associates have been involved in dozens of evaluations of new systems and business approaches. We have helped major government departments, financial services companies, local government, Telco’s, utilities and ‘not for profits’. This presentation outlines our best practice and the top level process to help you choose the right supplier. Naturally our assessment goes much deeper than this and we subsequently are often involved in post selection support, project guidance and implementation.
- 3. Evaluation Viewpoint High level Designed to achieve optimum results Flexibility to satisfy the needs of ….. Budget and time constraints
- 4. OVERVIEW WHO is appropriate to help in the search WHAT steps are taken during the search WHERE do you look WHEN do you do certain activities HOW you make the decision. . . . .
- 5. Assemble the Evaluation Team Representation from: Information systems personnel End users Consultants Business process specialists
- 6. The Evaluation Team Criteria: Empowered Establish reporting relationship Full time Team room Flexible Shared goals Shared loyalties
- 7. Feasibility Does your company need more than is currently available?
- 8. What is Driving the Need to Change? Functions Requirements to get the job done Features Convenience attributes that enhance functions of usage New processing requirements Results of mergers, acquisitions for changes in scope of operation
- 9. Preparing for the Evaluation Document your current system Interview users from each area Identify needs and wants Prioritize your new system features/functions
- 10. Document Your Current System Identify and document: What does it do well? What needs improvement? What does it not do?
- 11. Interview Users From Each Area Document users’: Functions performed with current system Perceived weaknesses of current system Perceived strengths of current system Potential efficiency enhancements
- 12. Identify Needs and Wants Current System Features and Functions
- 13. Prioritize New System Features/Functions Needs Wants Environmental issues such as: Database support Platform preferences
- 14. Decision Yes No? then Reengineer Do you really need a new system?
- 15. Decision Build Buy Yes we do. Now do we?
- 16. Develop a List of Possible Vendors Sources include: Professional organizations contacts such as BPGroup, ABPMP, IPM and IOD Analysts such as Gartner and Forrester Other companies in the area Other companies in the same industry Trade shows Evaluation consultant
- 17. Develop a Request for Information (RFI) Include minimum qualification requirements such as: Hardware/software environment requirements Specific application requirements Major functional requirements Major feature requirements
- 18. Request from each vendor: Concurrence with minimum requirements Current pricing with 180 day hold Three references installed in the last three years Nearest local user group contract Develop a Request for Information (RFI)
- 19. Request vendor background: Profile Financials Client base Other applications offered Third party software included/required Develop a Request for Information (RFI)
- 20. Getting the Answers Request response within three weeks of receipt of RFI. Immediate Answers
- 21. Evaluate the Results of the RFI Disqualify: All non-respondents Vendors not meeting minimum requirements Unreasonable pricing
- 22. Evaluate the Results of the RFI Contact the references of the remaining vendors to: Interview their evaluation team. Validate the length of use of their system. Review their implementation: Time Scope Staffing requirements Consultants, if used
- 23. Evaluate the Results of the RFI Determine if the source code has been altered. If yes, why and to what extent? Ask for other references. If consultants were used, contact them.
- 24. The Request for Proposal (RFP) Expansion of the RFI Written RFP Detailed requirements Instructions for bids Evaluation tool Verbal RFP
- 25. Meet With Each Vendor to Review Needs Objectives for the meeting should include: Review the process thus far. Define the priorities of needs. Discuss the vendor’s “solution”. Seek clarification of RFI responses. Review the next event and the remaining evaluation process.
- 26. Vendor Presentations/Demo Scheduling considerations: Demos should be at your site. Schedule no more than two demos per week. Avoid scheduling for a Friday or before a holiday. Schedule an internal debriefing the day after each demo. Start in the morning.
- 27. Vendor Presentations/Demo Prior to demo, discuss with vendor: Expectations and preliminary agenda Minimum demo criteria/checklist Emphasis on “LIVE” demo over presentation
- 28. The Demo – beware of the glitz! Do Expect the vendor to demo based on your needs. Focus on functional requirements. All evaluation team members should stay for the entire meeting. Do not fragment meeting by evaluation groups.
- 29. Evaluations Will objectives be met? Are requirements filled? Is there a cost/value balance? Does it fit in long term strategic plans?
- 30. Choose Finalists Select a front runner, an option two and never more than three finalists. Criteria: Best fit with needs Strength of references Responsiveness of vendor representatives Implementation time and cost
- 31. User Site Visits... Select the site based on functional match rather than location or industry. If the vendor attends, request time alone with the users. Review vendor reference questions. Ask about other product users, get names and phone numbers for further follow-up. View system. An opportunity to see the product in the real world
- 32. Vendor Corporate Visit... Optional Opportunity to meet senior management, review corporate direction and upcoming technology. Stay focused on requirements and current product availability.
- 33. Now Select One Finalist...and One Alternate Explain where each vendor stands and that you will buy from the finalist unless terms cannot be reached.
- 34. Evaluate Your Implementation Options Internal staff Consulting alternatives... don’t choose without looking at more than one option. Vendor Others
- 35. Contract Negotiations Begin Decide if vendor’s standard license or yours will be the basis for negotiations. Set forth your expectations and timeframes. Include pricing only for all software and maintenance. Buy ONLY what you evaluated. Beware of extras.
- 37. Summary Stay focused on functionality Beware of distractions Glitz and bling Insignificant functions and features
- 38. Summary Software license Internal staff Consulting cost 5 Year projected cost Maintenance cost Vendor Internal staffing
- 39. Implementation...The Real Work Begins Thank you More information? [email_address] www.bpgroup.org LinkedIn: www.linkedin.com/e/gis/1062077
Editor's Notes
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